Potential Support with Fibonacci Retracements | Trading Futures

good morning everyone john mcnichol here and welcome to hopefully another fantastic week of education with td ameritrade you've reached trading futures so the markets have been down and down again significantly this morning you know how low can we go well we can potentially utilize tools such as fibonacci retracements to possibly find potential support levels so stick around [Music] all right hey it's great to see those you that are live with us today we got tony uh michael frank ap uh kabuki there if i or paduchi there hopefully said that right and uh mr ken rose is helping uh with us on the chat here today do appreciate uh joining us here today on this monday morning as we start the week off in the markets let's go ahead and take care of her disclosures we'll get right into it today folks content is intended for educational information purposes only non-investment advice or recommendation of any security strategy or account type options not suitable for all investors spread straddles other multi-leg options strategies often involve greater more complex risk than single leg option trades also commissions transaction fees important factors should be considered when evaluating any trade short options can be assigned at any time regardless of the ending in the money amount likewise as far as long options whether a long call or a long put option the incur cost of that option uh position is at risk the paper money application your courage practice which you learn here today but keep in mind the paper money application is for educational purposes only and successful virtual trading during one time period does not guarantee successful investment of actual funds during a later time period as market conditions change continuously futures trading uh and options trade and futures and futures options trading involves substantial risk not suitable for investors and these trained services are provided by charles schwab futures and forex llc those trained privileges are subject to review and approval not all clients will qualify and while this webcast may discuss technical analysis other approaches including fundamental analysis may assert very different views all right well hope everyone enjoyed their weekend certainly was uh an exciting weekend for football uh although i think i just uh captured uh probably uh some of the more exciting aspects of it in the last five minutes of the kansas city bills game as i was on military training all weekend i was able to uh enjoy a little bit of that uh so i also do apologize in advance if i'm not as my chipper self as uh still in a little bit of a recovery mode there but do appreciate you joining us there's my brief background for those of you that are interested uh and likewise you can follow both me and ken on twitter it's our first initial last name if you want to learn more about us and what we do in fact there's me kicking up the legs uh on the coffee table watching the end of the game after a long day of duty there and uh likewise uh even uh chart a few things to our subject here today which is uh fibonacci retracements talk about where some of these potential support areas may tie in to the market not only with the underlying indices uh but also on the uh futures themselves okay uh so with that let's go ahead and take a look at that agenda as it's coming up on the board right now so we'll go ahead and review some of the current market conditions we'll explore the fundamental concepts of fibonacci retracements now the operative word here is retracements one may see fibonacci tools being used any number of ways is a ruler measurement projections uh which they can certainly be used for that we're applying these specifically to retracements of previous moves uh in this case previous moves of a longer uptrend likewise we can also look for retracement levels uh in the context of a downtrend as well so we'll go over some of those concepts we'll apply them to some of the charts here today we'll also review some of our open positions as we do have a open practice trade on a crude and iron condor which is pushed out towards the call side but still in the range and we also have a hedge that we started at the beginning of the year on the s p futures uh pretty much the first uh kind of close to the first trade day or after a couple of train days in the year that we still have on and actually build in on so we'll take a look at that towards the end of the session all right let's go ahead and bring up that thinkorswim platform see what we got going on uh starting off we do have the uh s p uh futures on the chart uh here on a daily chart we can see we're not getting uh off to a great start as uh this i believe is one two three four five about the fifth down day there now some traders may be looking for you know some type of counter move uh or or bounce um now whether that turns into a bullish reversal that may remain to be seen uh but uh we do have a lot of important news uh that's going to be coming out in the coming week or so uh with the fed you know fed kind of laying the cards out on potentially uh raising rates as early as march uh markets waiting to see if they're gonna deliver on that or not and you know obviously concerns uh overseas as well uh europe uh with ukraine and possibly escalation in that area of the world which can put pressure on the markets too but let's go ahead and i'm going to go ahead and bring up uh the cash indices first here let's see if we can go ahead and bring that up as i had that set up previously one moment here so kind of starting off and looking at things from uh more of a a longer picture here we'll start off by looking at spx on the s p 500 this actually didn't turn out as i had hoped but one of the vantage points here i'm going to go ahead and do a little split screen here because i think that'll work out for our discussion here as you go ahead and take a look uh at the chart here a little dyslexic here over on this side here this is the market rally from basically october the end of october of 2020 uh to where we are right now now if we go back and look previous to that you know we can see essentially that v bottom from the covid crash and that recovery but as far as the current longer term rally uh kind of picking itself back up you know started breaking out in towards the end of october and i've used this as an example of kind of a bit of a vantage point on this bull run now we can see that there has been really no significant retracement of this bull run you know over the course of this last year as we look at current market right now this is about been the only retracement of significance over that period of time now where does fibonacci come into the mix well you can see i have a fibonacci draw going from the low to the high of this trend now if i go ahead and redraw this again just so we can demonstrate that go into the drawing tools under the drawing tools look for that percentage tool and while we're there we're going to draw from a low in the trend that we're trying to isolate and we're going to draw to the high now why are we drawn from a low to a high well we are looking to measure uh a bullish trend and we're looking to potentially capture what are those retracements the pullbacks potentially can go down to and there's kind of a theory when it comes to fibonacci retracements on utilizing various ratios and you know common ratios uh in the fibonacci lower there is looking at approximately quarter retracements uh 23.6 uh 38.2 which is about a third of the pullback 50 now 50 is not a fibonacci common retrace well shouldn't say uh it's not a common retracement level uh it's a common retracement level but it's more tied towards dow theory although it's been applied in the fibonacci that when markets rally uh that those retracements or pullbacks it's not uncommon uh in different trends to see retracements of upwards of about fifty percent of that previous move so if you have a rally of let's say five dollars uh then the idea is that prices may pull back you know about a third or a half of that so if you have a five dollar move you know think about a retracement could be you know two dollars uh possibly even close to three dollars all right well we can apply the same thing with the market as well so we basically draw the retracement in the direction of that tradable trend so when we go ahead and apply this as a matter of time frame notice i'm applying this on a weekly chart so a weekly chart kind of represented more of that longer term trend kind of filtering out uh some of that noise so to speak of day-to-day price action all right now could you apply to a daily chart absolutely could you apply to a five-minute chart yes and those of you that joined this previously in this futures classes we've applied that as well in fact we'll probably apply that today on today's market all right so we're kind of taking a a bigger view out as we look and you know set potentially realistic expectations on you know how markets can pull back nobody really complained too much about the market rallying up to those highs and uh not pulling back unless people were looking for re-entry into the market okay so as we isolate this and see where we stand i'm just going to zoom in on this on the spx you know where are we at we'll notice last week we violated that quarter retracement okay what's the next level about a third retracement now in the context of trends uh holding or bouncing off of areas you know around a quarter to a third you know typically signify still a relatively stronger trend you know even with this pullback we haven't taken out the previous longer term low so from a long term perspective the s p is still intact here but is there potential you know for more pain more pullback sure we can see some of the additional levels and this can also help traders whether when they hedge or just understand what some of the potential downside risk can be by looking at these previous levels so as we look at the uh the 50 percent level where's that at that's at about 4021. now notice that's kind of close to a psychological level of 4 000 for traders okay and if we go below that notice i have in gold the 61.8 retracement now some traders

refer to this as kind of a make or break point uh for the overall trend uh that if the longer term trend would continue now when i say longer term trend that's going back to the october lows uh of the previous year uh that traders would expect to see that level hold if it fails then there may be potential for a full retracement and uh and with that investors may have to go back a bit further to get an idea of where some of those levels are this is just a three-year chart right here if i go back a little bit more you can see the lows down from uh 2020. now if one was a draw just go off the lows of 2020 and go to the highs again putting things in perspective we haven't even retraced a quarter of the lows from the coveted lows back in march of 2020. and notice there you can see some confluence with some of these other levels over a different time frame notice that 61.8 we're looking at more of the near term would be about a third retracement of the covid low all right so as far as the application of it's going to be based off of you know time frame and what period of time you're focused on now if we go ahead and take a look at some of the other indices uh let's look at the dow djx and we can apply the same method i'm going back to this low in december i'm going to draw from the low going to the high and we had more of a recent high on the dow there similar to the s p you know here's the third retracement uh in that case that's around you know 328 so what some investors or traders may be keeping an eye on is looking to see uh any type of candle reversal possibly like a hammer now from an investor's standpoint maybe looking at from a weekly perspective now notice there's another pattern on here we talk about price patterns such as double tops triple tops things like that now if i was to go ahead and just highlight uh that area on the dow now remember we're also in the middle of earnings and so those are going to be some catalysts on whether we see some continued downward pressure on these markets or if we see a sign of a bullish reversal now i just kind of highlighted that top and pattern i'm going to activate that we talked more about these patterns on wednesday in breakdown reversal patterns but notice when i kind of measure that distance there's a bit of confluence to that 50 percent retracement so if we continue seeing some selling pressure uh if for instance if these lows do not hold some traders may be keeping an eye on some of these particular areas all right and look to see if there's any type of bounce let's look at the nasdaq ndx and notice a lot of talk about you know breaking down below the channel uh that formed and knows a bit of a confluence as well uh looking back at those lows in october again we're going to go to the drawing tools here let's bring that up we're going to draw from that october low and you know this is a a matter of preference you know some traders may go to the lowest low as a matter of application from a historical perspective and i've used fibonacci for over 25 years um is looking at the low preceding uh the breakout and you know again this was that v bottom once again from october and this has been that current rally uh as we zoom in on that notice the uh nasdaq taking a bigger hit we're close to that 50 percent now that's 50 percent not only uh steeped in uh once again uh utilized in fibonacci but in kind of the concept of you know dow theory uh you know seeing an asset that may have you know retraced 50 percent of a previous move uh from a fundamental standpoint you know some traders may find some value into that and also from a a technical standpoint now it doesn't mean that that level is guaranteed to hold but notice there's also a bit of confluence here on the nasdaq with that 50 percent and going back to where it broke out in the summer broken resistance may have a tendency of acting as new support so potential uh if that level holds to see at least some type of possibly a counter rally whether earnings are going to help with that or possibly the fed being a little dovish we'll see how that plays out so come into some potential critical areas and then finally but certainly not least uh the russell again applying the same metric here on the russell going back to that breakout in october we're going to draw from that low to that high and notice we're kind of coming to a little more of a critical area on the small caps as notice that third level pretty much held for a good part of the year uh we crashed down the 50 percent last week barely held and we're below that 50 percent right now uh there's that 61.8 kind of a make or break if this level doesn't hold that may increase the potential for prices to fully retrace back down in these previous highs and possibly retest some of those lows now by measurements right now if we go ahead and go from the high on the russell going down to where we're currently at right now uh we are on the verge of a bear market uh for the small caps okay uh a bear market being defined as a correction of 20 or more we're in the 19 percent right now okay now that could potentially translate into other indices which are uh pretty much in correction territory a pullback of at least 10 percent and sometimes that negative momentum can build on itself but we can potentially keep an eye on these fibonaccis at least from a shorter term to see if there may be some type of counter rally and then whether that gives an opportunity for you know traders or investors additionally to sell or close out positions uh if the prices rip and fail to make those higher highs and you know notice even with the russell's problems uh if i go ahead and just remove this one and then you just want to as a measurement even though it seems like it's been trying to watch paint dry on the russell going from the low to the high from the covid lows we've only pulled about a third of that rally off of those lows which kind of illustrates on how strong small caps were going up into 2021 before slowing down and notice again a bit of a confluence here on this 50 percent with some of those previous highs so again as you kind of possibly overlay on the fibs you can see possibly some price levels that stick out in this case on the russell kind of around just below 1890 and then below that closer to around the 1700 level let's go ahead and look at some of your questions and comments there hopefully you're learning something new and our application once again is utilizing fibonacci retracements and to this point we went ahead and identified some of these different levels by looking at the longer term chart and seeing where some of that potential slowdown and momentum can potentially occur and see if there are weather investors as well as institutions if they look to potentially step back in again and let's see if we're looking at some of that thanks for helping out on the chat there ken tm says but once it hit a bear market doesn't mean it is at the end or should buy the dip obviously you can go further down uh but what's the risk reward well that that's kind of one of the ideas as far as fibonacci retracements if some support is held at a particular level some traders or investors may look to enter on a bounce but be prepared to for failure if the prices break back down below that level and then likewise as far as an exit if one's looking at more of a counter move is to possibly uh close out you know at a higher level whether it's another fibonacci level or looking at as we'll bring up here on the chart here let's switch over if one was to you know attempt to trade a bounce off a fibonacci level may target some of these next levels as resistance and notice you know there may be a bit of confluence with some of these fib levels and previous price action all right now since we went ahead and applied that to the uh broader uh cash market you know let's go ahead and take a look at it on the future side as well which you know we'll see some uh correlation on what the futures are doing uh as well as with uh the cash market uh and so you know if we notice that there may be some support on you know the uh the cash indices uh then you know when may look if they're looking to speculate uh to you know trade off of some of those levels on the futures as well so let's go ahead and bring up on the thinkorswim platform let's go and switch things up by the way you know you'll notice as you look over on the left hand margin there if you're enjoying what you're learning here today consider clicking like and you are on the trader talks channel so there is a subscribe link at the bottom uh bottom right i believe of the screen there and also a link to td ameritrade dot com forward slash futures i'll go ahead and i'll post that in the link as uh in the chat as well if you are interested in train futures and want to learn more you can go ahead and follow that link and once you're there you don't even have to log into the td ameritrade website but you'll see a link to education resources how to start trading and some of the available products that we make reference to including things like oil gold grains things like that now let's go ahead and bring up back here on the platform also i do have an example as well of a chart and again not a recommendation of one chart over another but if you want to kind of follow along on some of the examples that we've utilized here in this class that's a shared link it is case sensitive if we come up the setup here at the top and select open shared item we can go ahead and type or paste in that field and for some reason it's not working there we go i'll click preview and import and once one does that you can actually save that as a style this is actually an example of a grid chart and for some reason i have a bit of a lag here we go and we see we have an example forward slash mes which is the micro contract for the s p futures it's also one of the contracts we've utilized uh in uh our hedge so let's kind of take a look at at this one now you know we focused on some of the longer term price levels and you know you can do the same thing here if you wish although futures one of the reasons why we looked at the uh the cash index is you know futures charts are kind of continuous meaning these expire uh each quarter uh march june october uh december and and so when one contract expires it just builds onto that now we can still apply some of those same technical principles if i i saw the weekly chart here if i go and bring up a fibonacci retracement from a longer term again let's see if i can get that one more time going from the low to the high here and keep that as a reference for some longer term levels and notice i have a bit of a confluence here if i maximize this a 55 day moving average which is what i've utilized in this chart now this is a 55 week average uh notice that's kind of possibly represent that longer term support you know will there be a bit of a counter bounce off of some of these levels and those kind of in striking distance with those fib levels so a bit of a confluence here that earnings and the fed can be the catalyst to see if we get a bounce or a failure all right now if we go in a bit closer let's go to a daily chart and then you know we can see some of those same fib levels from that weekly some of that potential support now can we also draw to look for question mark potential resistance areas if there was a bounce where are some of those potential resistance areas we can do the same thing by utilizing that fibonacci tool uh all we need to do is take that same tool and draw it from a high to the low in a direction of that trend in this case a shorter term trend now whether one prefers to do it from the highest high down the low now we don't know if this is the low so these values may shift depending on where a candle reversal occurs but just just for illustrative purposes if there was to be a bounce and this would be a low here would be some potential resistance areas that if someone was doing a counter move may look to target those for profits or possibly adjust stops if they were utilizing stops keep in mind stops are not guaranteed to fill at a particular price once triggered they compete with other income and market orders and notice here now we're on a daily chart of the a confluence of that 61.8 level and here's my day moving average as an example kind of the make or break point for a bullish reversal of that move so if one was to be bullish over a relatively shorter term you still have to keep in mind that there can be some resistance however you know is there uh to uh what i believe that tm had mentioned you know you know what's risk reward well if this was to be a low and let's say we have a candle reversal right and let's say it's somewhere around this area you know even from the mid-range of that and let's say it was to trade up to some of these levels that's a two and a half percent move that's a three and a half percent move five percent and even going back up to that average revert into that that would be a seven percent move that can point towards some opportunities um however uh still have to be actively managed notice how quickly things happened over the last five days seven percent move to the downside so traders have to be caught conscious of that and those risks uh let's go ahead and uh switch this uh to the five-minute chart let's focus on what's happening uh today on an intraday basis now you can see here we have our pivot points and some of you may already be familiar pivot points uh we'll probably do another discussion on this probably uh going into february but pivot points are another way of identifying potential areas of support and resistance i have both the weekly pivots and the daily pivots now notice the weeklies which are in gold notice the price action has remained pretty much below uh those weekly pivots throughout the week implying that negative bias there was a small a short attempt to get above there on thursday that turned into a dramatic failure okay so still well below that so that kind of points towards that shorter term bias notice even in the overnight in purple the daily pivot uh we were kind of had an initial bounce things may say okay this is it here's the low getting above that daily pivot that's positive but notice uh as we got into the early morning hours with european markets opening and failing that was short-lived and now we're down to those lower lows okay now if we want to go ahead and measure more of this shorter term move at least entry day on the day you know we may go ahead and look at the drawing tools take the fibonacci retracement draw from the high down to the low okay and then now we're looking at some potential resistance quarter third half two-thirds so from an intraday standpoint this would be a potential make or break for a bullish reversal over a very short term now if one was bearish what one may do if we do get amounts here and prices rally when prices kind of get into in between some of these levels they may look for a bearish opportunity if the prices were to bounce off of that resistance and fail now we really don't have anything setting up at the moment otherwise i would uh put a practice trade in for this but notice that there's a bit of a confluence with this pivot point being potential resistance and kind of in between that third and fifty percent so one potential uh ideas if the price rallies into uh this fib area and then bounces back out of that is to potentially trade lower and whether it's down to the next fib area or target in that previous low as a typical swing trade fibs can also be utilized as i alluded to on adjustments so let's say one had initially did a trade and maybe have a stop uh that is you know whether at that previous high or maybe a percentage above a fib area let's say about one to three percent well as price goes ahead and meets certain fib areas is to consider adjusting uh that potential stop uh to a different level whether at least to a break even and or use it to scale out now i've used kind of the quarter level as a bit of a reference because that's typically if one was trading off the 50 percent of basically about half the move so notice another application for that now the question was are these uh regular pivot points uh they are uh in fact uh once again if you uh take a look at that shared uh example uh that i gave you there uh in the uh scratch pad this one here uh is utilizing those uh those uh correction uh regular fibs if i come back here and bring up that other chart so i can get that up and just go to the beaker or the the flask so to speak okay i got pivot points day pivot points week if you want to play around with this yourself you can come over here to the left type in pivot and we're using the standard ones now there's some other variations of that such as persons pivots woody's pivots you can go ahead and click on the little question mark to learn more that takes you to the learning center but essentially we're using the standard ones which looks at the previous day's price action in the case of the daily pivot and looks at the last five trading days in the case of the weekly one and plots those areas uh when you go ahead and double click on it if you're modifying yourself it defaults to a day but you can go ahead and click on the gear and switch it to weekly or monthly all right so we got the day and the week on here let's go and cancel that pull that out let's take a look at the russell forward slash rty which has really gotten knocked around and notice on the intraday uh those weekly pivots still well below there notice the russell as well had hit that daily pivot as a matter of resistance and broke down but you know question mark here i know we're early in the day you know here's the low you know here is kind of testing that low a little bit of indecision there you know is this potentially a little short-term uh double bottom okay uh if i go and pull this out we potentially utilize fibonacci as a tool here on possibly identifying potential targets intraday that could act as resistance on top of those pivots so again i'm drawn from the uh the low from or correction high from last night kind of from that daily pivot down to the low notice we can see a bit of a confluence here with uh some areas here looks like around this third retracement at this pivot point notice the 50 percent there's a kind of a tweezer top there so if we were to do a counter move you know to possibly trade up into that area those could be some potential targets now just for illustrate purposes let me do a practice trade on this i'm going to go ahead and back out of this and notice we got an atr that is below on the chart here now some traders may utilize tools such as atr to utilize that to identify some risk based off of some potential moves on average and we're seeing more volatility you know we're seeing some average moves of about upwards of about nine points uh how does that translate uh into the russell well if we go into the russell and look at under futures forward slash rty that's six thousand dollars and uh six thousand fifty dollars of margin with a tick value of five dollars and a tick size of ten cents so that's a 50 multiplier very similar to the s p 500 so you do 50 times nine right uh that's over uh what uh 400 450 okay uh with that one atr as far as risk if you did two atr that would be closer to about a thousand dollars now there are other uh contracts out there uh i believe we do have a uh micro contract sometimes a little bit harder for me to see it on this list here but there is a micro contract which is less leverage less initial margin possibly helpful on smaller accounts but then again there's still risk this is going to be basically a uh a tenth of the value of the um the mini contract uh so in this case uh this would be a five dollar multiplier so let's kind of use this one as an example for illustrate purposes that's gonna be forward slash m two k now keep in mind with less leverage you know commissions are still the same commissions can certainly eat up uh in any trade uh but let's say from a standpoint of you know looking for a counter move that may target into that pivot or a previous high you know we're looking at a move of about 22 points now if you want you can basically take that uh multiplier on a calculator uh you know i do five times just 20 as an average there that would be a hundred dollars so potentially hundred dollars per contract uh if i was kind of assessed an example of some risk on here let's say we had set uh our risk at two atr two times this atr value uh below our entry well that would be 8.95

let's do the math on that got the calculator uh 8.95 times 2. that'd be risk in 17 points 17 times five that would be 85 per contract so let's say potentially i wanted uh to maybe have not a problem risking let's say three hundred dollars we can probably do three contracts uh with this example okay uh so let's see if this is still uh setting up here as we bring it up on the chart hoping we would get a kind of a true fibonacci bounce but we're going to have to take a closer look at this now as i'm looking closer at it we don't have a candle reversal so i'm going to kind of hold this and what we may well what i will do as an example is uh possibly look for a potential bounce uh off of more of this weekly uh pivot here more of a weekly support that's around that 1920 as we kind of look at some of our fib areas here let's see if i can bring up more of the longer term example here so we still have that on there come on there we go yeah we were looking at the other example uh so on the m2k i'm going to go ahead and draw from the low in october we'll see let's let it get that longer term level to that high see a bit of a confluence there there's that 61.8 which is at around 1889.

let's go and switch to that intraday see how that comes up on the chart and we may still be looking at things a little too closer in here let's bring that up yeah maybe seeing a little bit of a hammer going here on the five minute but keep in mind where some of the downside risk is if we look at that 61.8 it's around 1893 that's still about 40 points below where we are right now if around this 1920 doesn't hold i am going to put this in just for illustrator purposes so we can have a practice trade in so i'm going to do is i'm going to go to the active trader here going to do three contracts and i'm going to do a trigger with a bracket okay and then what we'll do is i'm going to bracket this by about 20 points on either side just to get the example trade in and then we'll make the adjustment after that although keep in mind in this market moving 20 points up and down can happen relatively quickly so would consider being on your toes on the time in force we're going to make this gtc for good till cancel so once this triggers or it were in this example would bracket a sell order at a limit as well as a stop so i'm going to go ahead and uh click buy on this uh notice the equity that's being locked up that's not the risk that is the margin that's being tied your risk is going to be multiplied by five dollars for every point the trade goes against times the number of contracts in this case three now we are at utilizing a stop in an attempt utilizing a stop in an attempt uh to define that risk but keep in mind stops are not guaranteed there could be some slippage and losses can be higher than anticipated okay so notice we're tracking and you know notice there's that leverage work in our favor as we are getting a little bit of a five minute bounce there now as far as adjustment uh since my entry was at around 1936 i think the adjustment was about 17 points so we would set it about 17 points uh below uh that level and so in this case i can go ahead and adjust that stop here i can do it right on the chart uh let's see 17 points below that would probably be at around 1919 a little bit below there since we're coming up on time i'm just gonna be within a couple of ticks there and then likewise as far as our target you know we can go ahead and adjust that to just to a pivot point or if we want to target a previous high or if we just want to try and follow along with it as the price if it was to rise and heat certain objectives is to go ahead and raise the stop whether to a break even or below these pivots or if there's a fibonacci as we do get a fibonacci level adjust just below those fibonacci levels as prices go higher all right all right so let's go ahead and we'll take care of that right about in there we'll send that through all right real quick uh let's go ahead and take a look at some of our existing positions uh some of you uh had concerns uh when we did a practice trade on crude let's bring up forward slash cl uh we had done an example of a iron condor where we expected prices to kind of stay below a certain level and above a certain level if i go to the monitor tab so we can bring it up actually on the futures and futures options here it is right here now notice with the moves and crude this is not necessarily down exceptionally in fact it's actually up on today our goal for this is to stay in between 86 on the short strike uh for the calls and 70 and a half on the put side now let's go and look at that chart we did trade to that call side but keep in mind there's a difference between prices touching and prices expiring this was potential and expected resistance we are backing off at a little bit of that today so uh not overly concerned from our example one thing we should be considering is managing the put side which may be more profitable and if i go ahead and take a look at that right click create close and order let's look at the vertical on the put side now it says 8 cents but keep in mind that's a multiplier uh it's actually worth a bit more because there's a thousand dollar multiplier if i look at it there's still about 240 dollars of gain in this one we're not quite at seventy to eighty percent of that um so we're going to keep an eye on that uh if we're able to get buy it back for probably uh below four cents we may look to close that out but a little pressure taken off as oil prices backed off of that resistance uh the other thing we have going on which we've still maintained is our hedge from the beginning of uh the month just kind of show you how that's working we have two contracts short on the s p mini futures this from a webcast back on the seventh i believe and you can see how those gains uh are offsetting you know some of the you know brutal uh corrections losses we've taken some hits and steel and some other areas there uh but overall buffering some of that downward movement so there you go folks uh hey i just noticed there's a survey on the bottom there if you can take a moment uh to fill out that survey just takes a few moments hopefully we've accomplished some of our goals here today as we look at the current market conditions and utilizing some of the concepts of fibonacci over different time frames longer term as well as shorter term uh being able to identify potential support and resistance areas that may have a confluence with some tools we already use such as moving averages as well as examples that we use in futures for pivot points i would encourage what you practice what you learn here today we did get a practice trade-in attempt to do a counter move uh on some of these pivots and fib areas we'll see how that plays out we'll review it next week and uh would encourage you to practice some of the same things on the thinkorswim platform's paper money now remember in order to demonstrate the function add platform we did have to use actual symbols keep in mind td ameritrade does not make recommendations or determine suitability of any security or strategy for individual traders any investment decision you make in your self-directed account is solely your responsibility so thanks for being with us here folks go ahead and click on like fill out the survey we'll talk to you again real soon bye now you

2022-01-28 04:29

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