Three Things I Like About GDT

  • September 17, 2004
  • Derrick Hobbs

I’m
frequently asked if I use any other indicators or patterns with
Fibonacci time and price analysis. My answer: Absolutely. I’m in the camp of
“the more confirmation regarding a set  up…the better”.

Here is a great real time
example in Guidant (GDT). The stock is hitting a large price resistance
zone from  63 to 66.  As you can see from the chart, not only are we hitting
resistance, but the stock is: 

1)     
testing the neckline of a major Head &
Shoulders pattern

2)     
testing the 200 day simple moving
average

3)     
Yesterday printed a major “kicker”
candlestick pattern

Mix all that together and you
get a set up that, well…. “Hobbsy Likey!”. My first objective on the downside is
55 to 57. Stops on this trade for me would be above the fib resistance zone.

Have a great weekend!

Derrik

 

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