123Tom's TA study group

[123tom]

The LABD trade.

My training took over using Fibonacci this time

ok, from first look,without studying the larger picture but just this section, I see the volatile trading puzzle goes up and down,lets see what the 4/8 Emas look like and other lines, ..I decided to take a look at the Elliott wave and the Fib math and ended up on this trade...mostly looking at my Fibonacci analysis/wave pattern that I do, and it got me in the trade and hitting bullseye to 11.80 for a 40 cent gain. I would have made about 200 dollars on a 500 share trade.

On this one, for some reason, maybe intuition, the double bottom seemed key here, and then looking at the candles where the bounces peak ,at key resistance points, I measure these math targets with Fibonacci and see they are sharply accurate, that tells me its a Fib math track pattern I can watch play out, so I focused on this instead of examining the Ema's. The Fib math was sharp, and showed a first resistance target right around 11.65 area, which got hit as anticipated. This point in Elliott wave analysis is the subwave 3 of 5, but it could be a (bearish) wave C that finishes a bearish correcting bounce.

So at that moment,it was a gamble whether to close trade at 11.65 or hold. I chose (in my mind to hold ,when the support held ok),

From there I was counting Elliott waves and looking at Fib math targets for the final bounce to try and target the next resistance zone around 11.75/11.80 area. The Fib math was right at 11.80 for target.
and that would have been my trade.
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What I noticed on this one was the look of that double bottom kind of flipped me back into my usual way of analyzing with Fibonacci math and Elliott wave patterns, and the next thing I saw was how sharp that math was in this chart picture,so I kept with it,
One of the cool things about using Fibonacci projection is that you can start measuring and drawing the next target long before it would get there, and the construction of the picture ,for me at least, adds to the vision Ive trained my eye to see. Its like that with any tool one uses when you are so focused from study using just the handful of tools you become expert with.

So in this trade set up instance, If I had waited for the Ema cross signal I might have got in around 11.55 or something. I soubt I would have taken that trade.

plus, if I was using the Ema cross over to close the trade I would have been exiting much lower than the 11.80 target peak .

So maybe there is room in my trade system to keep using my Elliott/Fibonacci analysis, but to add the Ema's and some other things.
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You mentioned about understanding Divergece indicators....thats something I have very little knowledge of.Is it a key tool for you?
Sometimes,Ive looked at it,when you mention it, and I have to admit I dont really know how to read it.



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