Replies to post #23267 on lowtrade

[lowtrade]

If it retraces that much you should have been long gone! Start using the FIBs retracement overlay to know when to give up watching. You can find it on an Annotate (Flash) chart, at stockcharts.com

Remember as the price retraces below each level, that level becomes a resistance level to new price continuation. If it retraces below 61% you would need 3 resistance points to be broken. Thats allot to over come. And where the FIBs Rule of Thumb comes in handy.

After watching many many runs and retraces I came up with the norms which can be expected. Sure you saw it here before.

FIBs continuation Rule of Thumb;

If continuation starts from 38% expect previous high broken.
If from 50% expect previous high.
If form 61% expect 38%
If from below 61% expect 50%

New move may exceed these levels during the surge. But most every time that surge returns to those levels quickly.

Just another trading aid to remember, while evaluating trading plans and expectations, without active chart patterns to rely on.