The markets appears to be trending within an 3 drive uptrend channel. However, when drawing some fibs from March 2013, I saw the 0.236 retracement level has not been touched yet.
So this got me thinking.. If i was a BIG investor/trader with lots of money, at which levels should I be looking at?
Well, drawing in some more fibs from 2014-09, 2014-11, 2015-01 i came up with a nice cluster of fib retracements around that same 0.236 retracement level:
a 0.236 retracement at 1.8694 (2013-03)
a 0.5 retracement at 1.8618 (2014-09)
a 0.618 retracement at 1.8685 (2014-11)
a 0.786 retracement at 1.8700 (2015-01)
a 0.886 retracement at 1.8532 (competion bull bat)
This gives me a zone of roughly 168 pips.
Also, if you look left, you can also see that this zone is lined up with previous structure zones.
So is it possible that this channel can be broken to the downside only to hit that zone, complete a bat and immediately reverse back north? Could it be that stophunters think this way? Can they push the market lower to that zone?
So if I was to go long now, I know i would definitely place my stops below that zone. From a risk:reward perspective I would wait for the bat to complete to go long.
So this got me thinking.. If i was a BIG investor/trader with lots of money, at which levels should I be looking at?
Well, drawing in some more fibs from 2014-09, 2014-11, 2015-01 i came up with a nice cluster of fib retracements around that same 0.236 retracement level:
a 0.236 retracement at 1.8694 (2013-03)
a 0.5 retracement at 1.8618 (2014-09)
a 0.618 retracement at 1.8685 (2014-11)
a 0.786 retracement at 1.8700 (2015-01)
a 0.886 retracement at 1.8532 (competion bull bat)
This gives me a zone of roughly 168 pips.
Also, if you look left, you can also see that this zone is lined up with previous structure zones.
So is it possible that this channel can be broken to the downside only to hit that zone, complete a bat and immediately reverse back north? Could it be that stophunters think this way? Can they push the market lower to that zone?
So if I was to go long now, I know i would definitely place my stops below that zone. From a risk:reward perspective I would wait for the bat to complete to go long.
