How To Trade This Yahoo! Symmetry Zone

  • July 9, 2003
  • Derrick Hobbs

The
rally has been impressive. Since December 2002, we’ve had
approximately 8 corrections. Those declines have each been between 2.5 and 3.5
points. By taking these declines and projecting them from the current high, we
have what’s called a “Symmetry Zone” from 32.12-33.17.

How to trade the symmetry zone:

  1. If the zone is broken, it’s
    an early indication the immediate trend is in jeopardy and I’d be cashing in
    longs and waiting for a short setup.

  2. If the zone holds, look for
    reversal patterns (or your chosen indicator) for entry on the long side with a
    stop below the symmetry zone.

As I’m typing,
Yahoo!
(
YHOO |
Quote |
Chart |
News |
PowerRating) is trading at 33.38 with
a low around 33.10.


Side
Note: After months and months of hard work,
Tradingmarkets has released my book, “Fibonacci For The Active Trader.”  I
want to thank everyone on TM’s team that helped put this together. They are a
class act and I’m very happy with the final product. I hope everyone that reads
it feels the same and gets some good trading value out of it.

Have a great night!

Derrik Hobbs