No Predictions
Most of you should know by now that I try to not make predictions. I draw my trendlines, put in Fibonacci measurements, and ask myself “What if” the market decided to turn here. And then I take action if I find a setup.
If you don’t know why I take a close look at 423% retracements of the first pullback in a large move, read this recent post. And no, I’m not calling a bottom here with this 15 minute chart. But I’ll certainly watch very closely in the morning. (Don’t try to compare prices on the 3 and 15 minute charts - contract rollover today and I didn’t change my chart.)
The market acted well on the 3 minute trading chart. The first pullback from “X” was 62% (normally a large pullback) and the pullback to “B” was the normal 38% smaller retracement. All of the internal measurements in the downtrend were Measured Moves (in yellow) allowing you to fine tune any possible entries.
The mid-day bottom had numerous signals — a Fibonacci cluster as well as bouncing off a parallel trendline. Even the afternoon reversal in magenta had lots of reasons to consider a trade.
It was the largest pullback of the day, and as is often the case, retraced 50% of the entire down move. It was also a 78% Fib retracement of the decline from “B”, and if you check the small internal Fibs, you’ll find it was a 262% external retracement of the first pullback in the rally. Another nice Fibonacci cluster with a Gravestone Doji candlestick at the top. Very good signals all day long.
