This week we look at stocks, cryptocurrencies, commodities, and stocks making moves. The stock market looks to be inside a bear trend coming off the late March rally. I am looking for a spike up on VIX to mark the next stock market swing bottom. Cryptocurrencies have almost all given up their recent March rallies with Ethereum holding its ground for now. Oil is on its way back up to 112. Gold and silver are showing signs of trying to retest the recent failed breakout high but may just be marking a new consolidation. Tech stocks are giving up the resurgence and value stocks continue to be winners.
I see you're basing many trades off of 50% retracement bounces. How do you decide if you think it'll bounce or not? Do you have special rules for that?
For instance I usually wait for a double bottom on the timeframe I'm trading, or one lower. Then a candle closing in the direction of my trade after the double bottom, and then wait to see that the next candle is starting to continue in the trade direction before entering. Just curious to see if you have any such guidelines or rules for yourself. I noticed that you entered pretty close to the 50% Fib on the ETHBTC trade.
Looking forward to hearing from you!
Jørgen
norok
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@munkeby, Good question. I look for some price action phenomenon when price gets to those levels. I want to see price "react" to that level. That reaction will tell me if it has the potential to reverse and also allow me to define my risk. I think you could employ your method that you described on lower timeframes. Look for the pattern you are familiar with to happen on a longer timeframe's 50% Level. It may not happen often but it would be a rare, high probability opportunity.