Two Lessons In One…
Fibonacci retracements can point out potential key turning points in stocks
and indices. Be it intraday or on the daily, it will benefit you to be
aware of them.
10:59:54
Intraday Setup Alert
The e-mini S&P futures (ESZ2)
is coming out of a 1-2-3 bottom at the 61.8% retracement of Friday’s intraday
low to high. ESZ2 is down 3.50 at 879.75.
After the pattern triggers an entry, it makes a brief blip
downward before taking off.
This also reinforces the
concept of letting the market take you out of a trade. By simply sitting tight
and letting the brief blip down play out, the stop at the bottom of swing point
number 3 is not hit and the trade
moves to the upside. By letting your emotions take over and bailing when the
trade does not move higher right away, you may have cost yourself a good sized
winner.
Therefore, keep an eye on key Fib levels, and as a secondary
lesson, get in the habit of letting the market take you out. I think you will
find a greater ratio of success, with a much lower level of anxiety.
Until tomorrow,