Replies to post #46494 on lowtrade

[lowtrade]

With the FIBs overlay, you watch the retrace until the first bounce day. Depending on the turn around point, this "Rule of thumb applies" in choosing stocks for future movement.

FIBS, I use it frequently!

If price retrace bounces from
38%; expect previous high taken out.
50%; expect previous high reached.
61%; expect only to 50% come back
from below 61%; a bounce should reach 38% FIBs line.

If any bounce doesn't reach expected targets, in 3 days, it's dead! All are short term expectations except a bounce @ above the 38% FIBs line. That one calls for top resistance break and possible continuation move.