If you studied my fibonacci guide from Monday and practiced it, you will have been able to accurately call the bottom of many stocks today.
And pivot points as well
It should be no surprise, after you practice fib lines, how they line right up with your pivot points and other areas of support/resistance
If you aren’t spending time every day studying charts in this fashion you won’t grow, you won’t be consistent, it takes practice. Find one or two stocks, and one or two patterns. The easiest is a 5/10ma cross on the hourly chart or the daily chart. The other is a head and shoulders pattern intraday. If all that is greek to you ask. I started studying SPY and only SPY using this. Once you have identified a pattern you can trade consistently, use pivot points/fibonacci lines/ and trend lines to know when it is safe to enter and when it is safe to exit.
Most importantly, if you don’t have one of these patterns you can recognize and trade in front of you, wait. The market will deliver an opportunity. 20% of the time trade, 80% of the time wait.
Here’s what you should be looking at during the day and at night in preparation for the next day: the 5 simple moving average, the 10 simple moving average on an hourly time frame chart and a daily time frame chart. Volume all time frames. RSI on daily time chart. And on your intraday chart pivot points. What times? All times tell you something different. I look at a 2-minute, 5-minute, and 1-hour chart all day long and reference the daily chart during the day as well. The hourly will be more indicative of stronger trends, the 2 and 5 minute show me what’s happening more quickly. You can use other indicators but at least use those and understand them.
Master these patterns: 1) head and shoulders, 2) inverted head and shoulders, 3) 5/10ma dead cross, 4) 5/10ma golden cross. There are more but at least those.
I will try and call out the support and resistance each day along with the patterns as I see them (if you are in our private chat). If you aren’t looking at the chart to see what I see the way I am seeing it, start. And if it doesn’t make sense just ask. It just takes time to develop a sense of understanding what you are looking at, a lot like reading a new language or code. Pretty soon it just becomes natural.
At the end of the day what matters is that you win. So on top of everything, take profit. Never get greedy. If you feel like the market has given you a profit you can live with, take it.
I’ll remind you all as well of my trading rules. I have learned all of these the hard way, over and over again
