Preparing to start the day I check the news and I adjust the Fib-levels in my charts where necessary. Yes I have to do a lot more homework now and I usually do it in the morning to get a feel for the night moves. What has happened when I was asleep, anything out of the ordinary worth taking notice of?
How do I place the Fib-tool? Often I look at yesterdays High and Low and use these to place the Fib-Lines unless I notice another prominent High or Low to use instead, which gives me yesterdays levels clearer than using the High and Low of the day.
Here is the FTSE and how I will use the Fib-tool today
Here is the 15min chart I have on screen for the general direction of the market
There the 50% level is hit on yesterdays selloff and bounce up.
This low is used on my trading chart, while the high remains the same
As you can see the close oscillated between the 62.8% and 50% retracement level and an earlier bounce around 17:20 showed a swing around the 50% level. So these settings describe yesterdays trading and I expect them to work today as well.
and here is the opening right at the top level
I don't chase as a rule, but that is kind of frustrating.... missed the entry when typing in the blog
Now isn't this astonishing? It's running up with no end in sight and as if there is a brick wall it stops at the Target line. You know this line is calculated and not some fancy previous High or Low. Got this one right I guess...
Watching these levels on the ES
Did no trades worth mentioning today after I missed that morning trade in the FTSE as I was away most of the day. Tried trading FTSE after the US open, but it's so thin and therefor fast, that it's not possible to trail the exit. Had 4 1 tick profit trades in a row, as my exit target was missed and the FTSE reversed so fast, that only my protective stop saved me from a loss.