Yesterday we had a quick flush down after coming into the harmonic pattern completion zone. It hit T1 then made a V shaped recovery and stopped me out on the remainder at B/E. This morning NAS has gapped up and is now consolidating in a tight range just below the 1.27 fib extension measured from yesterday's flush low. Looking for a break from this small box. If it breaks higher T1 would be the ATH next targets would be further extensions. If it breaks below the box look for yesterday's close to provide support then the 236/382 retracements. The look stays very bullish unless price happens to fall below the neutral zone (618). If this seems confusing to you check out my FIB method posts below.
הערה:
Careful traders. Price has dropped back into the box. I use the boxes to control risk. If price falls below the box and takes out this lower wick price will likely drop to the 236 or 382 again. Manage risk accordingly. You can always re-enter if it sets up again.
הערה:
Held the box and went on to hit T1 at the ATH and then tapped the 1.618. As you can see I am not the only trader watching these extensions. After touching the 1.618 price sold off immediately and is now back to the the top of the box. Very important to understand the power of these levels I post. Always take profits at these levels and raise your stops behind price.
