Hi Elm,
Yes, if NGEN holds here or even dips a bit further, it will mean the stock is very strong. It's not uncommon for stocks to retrace (move back) 50% of a move from the high in the low/high calculations you're using. NGEN isn't even close to the 50% number of 2.82.
Let me give you some things that I have used to help get better in fibs and on trading in general:
TA SITES
tradertalk.com
trading-stocks.netfirms.com
One of the best free sites out there for learning things: incrediblecharts.com
Pivot points: tradingthingys.com
deltat1.com
free pivot calculator: deltat1.com
info on fibs: gis.net
fib studies: marketscreen.com
stockta.com
tradingday.com
google search: google.com
================
Neal Hughes "FibMaster"
brings you two dynamic video seminars to
help you maximize profits while controlling risk.
Video 1 Introduction to Fibonacci Trading
Video 2 Advanced Fibonacci Trading
fibmaster.com
Buy most of my stuff at www.traderslibrary.com prices are very good.
Excellent book: The Logical Trader – Fisher (Uses a variety of things but talks about pivot ranges a lot.) It is the one book I would suggest to anyone in trading.
Simple Fibonacci Trading – Michael Jardine DVD
Book: The New Fibonacci Trader – Fischer
Fibonacci Ratios with Pattern Recognition – Larry Pesavento
=======I'm no expert on fibs; I'm still learning, but here are my thoughts in a nutshell:
There's all kinds of ways to use fibs. You can do intraday fibs using the low of the day before and the high of the current day for daytrading (that high can keep changing too), you can do shorter frame fibs, like the high and the low of the last run, or you can do larger frame fibs. I basically do the larger frames. For entries, you check the fib lines you've drawn, you see how the stock is trading in it. If it's trading in a range within a particular fib line...you can fast trade by buying the low fib line and selling the higher. In general if it's longer term you can wait for a retrace and I'm sending you some info on that, start your position, and then follow the fib lines to sell. I use the extensions to give me targets. Once a stock passes an old high, the highest in your time frame, you look at the 1.27% fib to sell or if the stock is really momo, you look to sell around th 1.618% fib extension. I've included a bunch of stuff in this attachment, so take what is helpful to you. Fibs really are helpful and so are trendlines, you will be ahead of the game if you learn them both.
I just started reading FIBONACCI FOR THE ACTIVE TRADER by Derrik S. Hobbs - Looks very helpful. It's a workbook kind of format.
I would STRONGLY suggest this book on trendlines. It's rare IMHO to find a whole book devoted to TLs. They're usually just a small section in a book. THE BEST TRENDLINE METHODS OF ALAN ANDREWS AND FIVE NEW TRENDLINE TECHNIQUES by Patrick Mikula.
Good luck,
Lexi |
