New month, pop.. Gap up...
Left to right..
Fib 1 very big front run on its 50 level long, its almost going up from the 38.2 line already. To target at the -0.236
Fib 2 now since we don't retrace but continue higher you draw fib extensions from the previous zero line. Look how the long traded again with a very big frontrun.
Fib3 and fib4 are two other ways you...
Left to right.
Fib 1 is the fib extension we are currently holding with targets for a new low. If you took the 50 fib short and took half off at the 0.382 you could have gotten free 3 times already. This is why I think we will go further up into the sell zone right now. Stoploss of the short is around the 65 level this is exactly where that previous spikey bottom...
I guess everybody is seeing some sort of daily / weekly trendline above cable right now, which is now resistance instead of support. Like with most trendlines, you can move these around and still have a valid line. Trendlines are not very precise. The way I've drawn it on the chart right now is as if the last impulsive move on cable already happened. But it...
General fib explanation:
0.5 level to enter long or short
0.65 level of stoploss to the trade
0.38 level is a level to take some profit off
-0.236 1st trade target
-0.618 2nd trade target
I go through the fibs left to right.
Okay 1st fib on the left, this is just there to show you how I got to the lower anchor of the 2nd fib. Often the first micro wave is...
Fib1 shows the long level price is holding.
Fib3 shows the buy zone we are currently approaching if the selling continues. Looks like a long opportunity to me, if we even reach that place.
Fib2 shows the current short level we are trading, even if we break the 1.26 area AND trade the short to target (the -0.236 fib level), we end up at price holding longs.
Fib1 is the long fib which traded under its 61% line, making it a break or possible dirty hold of longs.
Fib3 is the extension short drawn from fib2 which was a strange traditional fib short. Fib3 held and broke lower fast.
If it goes to target it breaks fib1, meaning that a pullback higher can be sold into towards the larger buy zone.
However if fib1 holds...
Fib1 shows the longs are holding. The long was bought at the 50% line with a stoploss under the 61% line. Only a break of the dotted red line signals a look to get short after a pullback higher. The target of the fib1 long is the -0.236 up at 1.41. If price would go down the 50% line of fib1 again I would look to get in a scalp long and hold until 1.41.