This Is Why You Should Watch Key Fibonacci Levels
If you are a CNBC
viewer, you might have noticed a couple of reporters talk about
Fibonacci levels sometimes. What does it mean? Soon, Fibonacci is going to be
common knowledge just like moving averages. I believe most of charting softwares
come with Fibonacci tools today, and I’m sure many investors and traders are
experimenting them.
11:19:07
(From TradersWire)
Biotechnology HOLDRs (BBH)
is testing its 20-period EMA on its 15-minute chart. Long BBH if it trades above
140.26. Place a stop just below the 20-period EMA (140). Our initial target is
near 141. BBH is up 0.29 at 140.21.
BBH took out 140.26, and we managed to take a
small profit shortly before noon. Immediately after taking profit, the stock
reversed and hit our protective stop. Why did it reverse? As you can see above,
the culprit was the 38.2% Fibonacci level. Some traders must have used it to
time their exit.
Have a nice afternoon session!
If you have questions, feel free to mail them to me.