Swing Trading (days to weeks) | 5-14-19 | John McNichol
You. Want him in everyone John McNichol here. Markets. Been swinging back and forth over the, last couple of weeks mostly, to the downside, are we. Going to look at a bounce, in the market or another. Swing failure, stick around. Good. Morning, everyone John McNichol, here and welcome. To. Swing. Training days two weeks for. May 14th, 2019. Do, you appreciate those you that are here live with us today as well, as listening, to the archived session. It's. Been a couple of weeks there do appreciate. Barbara. Armstrong, for covering down over. The last two weeks there I will, be with you this, week as well as next week and then I'll be going, on military, leave once again for. The month, of June but, it will be back in July so. Once again thanks for being there Ricardo, bras barrette. James Michelle, for Zod nice to see you again let's. Go and take care of our disclosures, and we'll get right into it. Options. Are not suitable for all investors as, the special risks inherent, to options trade it may expose investors, potentially. Rapid, and substantial. Losses carefully. Read the priests provide a copy of characteristics, and risks of standardized. Options, spread. Straddles, and other multi leg option strategies can entail substantial, transaction, costs include, multi Commission's which can, impact any potential, return keep, mind that also advanced option strategies often involve more greater. And complex, risk, than, single leg option trades investors, should also consider contacting a, tax advisor regarding. To tax treatment applicable, to those spreads and other multi leg option transactions, now, in order to demonstrate the functionality of the platform we need to use actual symbols keeping in mind TD Ameritrade does not make recommendations. Or determine the suitability of, any security or strategy, any investment. Decision you make in your self-directed, account, is solely. Your, responsibility. Now. For active traders as, well as any trader, transactions. Are part. Of doing business their. Transaction. Costs are important, factors and should be considered when evaluating any trade we're. Going to be utilizing, a, demo, account looks. Like a real account but it's just, like paper money it is not real money you, have the opportunity, to practice a lot of things that you learn here too using. That paper money application. That software, is for educational purposes and successful, virtual training, during, one time period does not guarantee success of actual funds during later period as those, market conditions, change continuously. As. Always past performance, of any. Security of strategies does not guarantee future results or success and as, always all investing, involves, risk including the. Risk of loss now while this webcast discusses, technical. Analysis, other approaches. Include, fundamental, analysis, may assert very, different. Views. Alright, let's go ahead and bring. Up our thinkorswim. Platform so, we're going to discuss, here today. Point. Your attention over to the left, what, we're going to do is we're gonna review, fibonacci, retracements. And how. One may, apply fibonacci, retracements. To the swing trade and. We're also going to go ahead and place some, practice, traits what. Our objective, is for today is after, this. Lesson, a 1, being, able to apply a, Fibonacci. Retracement. For, a possible. Swing trait we're. Not going to change the fundamental. Setup. As far as what. A swing, trade maybe we're, just utilized, in another, tool. Now. If you have any questions feel free to go ahead and share type, that into the chat also, keep in mind there'll be a survey that'll be coming through towards the end of the session. Also. If you're new we certainly welcome you all right however this. Is a little more of an application based webcast. There if you feel you're struggling. On some of the concepts, feel, free to join my good friend Cameron May every Monday at 11. A.m. Eastern, Time for, getting, started with technical, analysis, and charting essentials, one. Could go right to the education, tab and go. To the webcast, archive, to view that Cameron.
Just Did one yesterday, there, also. As we may, place some. Practice option trades as well if. The. Options are a little bug your head as well you. Can go to our education, tab attend. The trading. Options, course and also, as part of our getting started series Barbara. Armstrong, has, getting, started with options every, Friday at, 11:00. A.m. Eastern. Time. All right so, let's go ahead and we'll see what we have going on with the, market, and will, apply Fibonacci, there. And we'll. Also go ahead and apply that to some individual, stocks and do. Some practice trades okay. So. What we're looking at is the, sp500, at, the moment. Let's. Go and clear this out here. And. We'll, go ahead and. Maximize. This, chart here. Now. We can see why this may, be a potential, timely, discussion on Fibonacci. What, has occurred. In the market over. The. Last few, weeks we've seen a pullback. And a significant, pullback in the. Intermediate. Trend of the market, some. Of these trends have broken. Others. Maybe testing. That and, utilizing. A tool fibbin, as such as the Fibonacci retracement, tool can, be one way of, identifying. Some. Potential, support. Areas. In a bullish trade or. Resistance. Areas in a bearish, trade since we're looking at a pullback. In an overall bullish, trend we're, going to apply this for. The aspect, of potentially. A bullish. Bounce, I was, only get the price action on the S&P we're. Inside. The previous day a Hourani, that. Is one indication, of. Support. As. We go ahead and look at previous. Price action. Resistance. Which. Is broken out does have a tendency of acting as new, support. And. CW. Says I have to know what the screen drawn tool is called that you use. Fortunately, wouldn't be able to share. Third-party. Tools but, there's various. Presentation. Tools that are out there that. One can look at CW, there, my, apologies, there. But. It is not part of the thinkorswim. Program. Now. Pardon. Me. My, throat's a little sore here I will see we get through this so. Now where, is Fibonacci, come. In the mix now if. You notice when, we look at a trend, you know trends don't go straight up we, see a series, of. Swings. And this, is part, of this class trying to capture, some. Of these swings, here let's, go ahead and get some right colors here and you know green as far as an upward swing, pull, backs. Otherwise. Refer, to as a retracement. You. Know followed, up by upward. Swings. Now. Sometimes those pull backs may be more, of a consolidation. A little. More sideways. But. You get the idea as, far as the aspect of an upward swing, now. Notice, what's, occurred. Since. The, end of April a, little, more than a. Just. A little bit of a pullback, here. So. Try and finish this out a. Lot, of times it may start with a swing. Failure, which. Is when. It occurred earlier. This month as price, action, after. Making a high on the next bounce made a lower, high and broke, down and, made a lower, low, that. Is a shorter, term reversal. And. Prices. Have sold off to more of an intermediate, area. Of support. Now. If one's looking for a potential, bounce here, one. May go ahead and look at more, of the, larger. Part of the trend and. Possibly. Try and capture a bounce that may be shorter. In duration. Now. If we want to go ahead and apply that, Fibonacci. Tool. As. Far as a retracement, we, can go ahead and click on the drawing, tools up to the top. And. Under. Drawing tools it is the percentage. Indicator. Here. And. When. One draws a tool we are drawing, it with, the, direction of the trend that one is trading so if one is looking, at an uptrend. One. Would draw the retracement, tool from. The low to the high with. The, tradable, trend with the prevalent trend if, one was looking at more. Of a downward, swing in a downtrend one would go ahead and draw from the highs down, to the lows again. As far as the tradesmen tool drawn with, the, trend. Now. If I go ahead and actually, select. A, high. Or a low into trend some. Traders may struggle as far as okay, well whit high - what, low or. What low - what high would, we draw the. Fibonacci and. Certainly. It's it's a subjective area. A lot, of it's going to be a matter of time, frame, again. Whether, it's days to weeks weeks to months you. Struggle. And identifying, some of those highs and lows and we have that little nifty pattern, to, the upper right under patterns. On. The chart, select. Patterns at William fractal, tool. Part. Of the candlestick, tab. And.
Williams. Fractal. Good, slice over here a little bit. We'll. Go ahead and add that and. Apply. Now. As we go back we, can see. Some. Previous, highs. And lows in the trend. Represented. By these fractal, points. We. Can see from a shorter-term standpoint. How. Things went ahead and broke. Down, below. A previous, low, shorter-term. Change in trend, and. We also go back and see some of the lows that are more in that intermediate, trend. Now. Some traders may look at an, intermediate average. Whether. It's like a 50-day, moving average, we. Have a 55. Period moving average represented. Here and those prices have actually traded, below that certainly. From a shorter. Term that momentum has been more, on the downside and has, broken that, intermediate, rent, so. You know at this point. Traders. May look for one of two scenarios if, one was more inclined, to be in bearish. They. May look for a bounce and. Look. For a failure. Look. For a bounce and then, look for a swing. Failure, lower, high and look for prices to bounce and trade, lower now, this may be a setup that, one may see over. The next couple of days if we see a bounce. If. Someone was more optimistic, and looking. For prices, to rally, higher, still. May fail, but at least trying to capture shorter, term momentum to retest a, higher, level of resistance or possibly, even retest, those highs. Hence. Where this, Fibonacci, tool can come into play I'm gonna take that Fibonacci, tool and I'm. Gonna draw it from the. Low. In. This. Trend. Based. Off of that intermediate. Average 50-day moving average and. I'm. Gonna go ahead and draw it to the high. Now. A couple levels. Coming. Into play here. Commonly. As far as on a retracement, when, Macy bounces, occur at. Around 1/4. 1/3. 50%. Or about 2/3 of that previous move. Talking. About feelings for Zod says he has a bad feeling about this market that's understandable. There is volatility, out there but. Could certainly create some opportunities i. But. Looking at these different levels third. Half, 2/3. One. Area to. Consider is around. This fifty, to, sixty one point area notice. As the market. Right. Now is, kind of nested, in that. Range so. One. Idea. Is. If, prices. Were to break, out of that 50% range. Is. To look to capture, a swing. And. One. Can target, the. Next level of Fibonacci or. Even. Going up to some of the previous highs now if I pull this back a little bit. So. You can actually see the. Top of the line there certainly. Ideally, as far as a swing. Trade. Is to capture. That previous, high, now. Again we know shorter-term prices, have pulled back. But. They are still holding a, Fibonacci. Area, that's 60 1.88. Area, some. Fibonacci traders, consider that to be a make-or-break, point as. You. Know some of, psychologically. Some of the consensus, may be feeling, a little. You. Know cautious about the market or unnerved. By the market, based off of how it's sold off. Prices. Did come, down to a level. That, some technicians would consider to be support, if that, level holds. Prices. May consolidate, and trade higher if it, fails a break, down below that level, may. Pretend, to, retest some of the previous, lows in, the trent that's. What some bears may, be keeping an eye open for. Now. We're going to apply this foreign principle of a bullish, bounce. Again. As far as potential targets one. Can go. Ahead and target the previous. High. However. There's ways that one can possibly, capture smaller. Moves, and utilize. Some profit management for. Example. Once. Price trades. Up to a certain. Level you know. Whether it's a 38 or we'll use an example if closer to the twenty. Three point six, if. Prices were to come at, or near that area that. Could be a way of scaling. Out of the, trade if. One has multiple shares or multiple contracts, and, then. Also adjust. To a break-even, on. Where. They entered into the tray, so. That way if there is a failure a swing failure. One. At least has a break-even, or. Possibly. A, relatively. Smaller. Game. So. Let's go ahead and apply this to, some, individual, stocks if, anyone has any questions and what we're discussing here today feel free to share certainly. Love to hear from you.
I. K. Says how, about using MACD, determine, bearish. Or bullish, so. We have the MACD on the chart, the. MACD is an, indicator that may represent momentum. Now, we're also also, kind of doing that already, up, on the top of the chart with, some of those moving averages. Notice. As the moving averages were falling, the MACD, was falling and. That's. Expected, on. A, retracement. In the trend. Now. What some traders may look and utilize in that MACD, is. If the, price is bouncing, does, the MACD, follow, that. By. Going. Higher. Other. Indications, and we may discuss this in another session certainly, on our Monday session, on technically, speaking at. 2:00. P.m. Eastern, Time one. May look for divergences. Whereas, the prices approach in that support looking, for the indicator to actually be rising even though the price has fallen. And. As we look at the MACD the MACD has ticked up some, traders may look at the MACD as an, example of confirming. To bounce notice. Price traded higher MACD. Ticked higher. Prices. On an inside day not, quite confirmed. The. MACD kind. Of equal may, potentially rise. So. Some traders may use that as a matter of some, sentiment. But it's not really more sentiment, it's more an example, of momentum. Okay. Using, conjunction with other indicators. All. Right so that's what we got going on with the SPX, let's, go ahead and, apply this to. To. A few stocks here and we're. Going off of, the. Penny increment, watchlist. Kind. Of went through a, few, of these earlier. Looking at different stocks different, sectors since the market pulled back a lot of stocks may be showing the same, thing, let's. Bring up unp, as an. Example Union, Pacific. As. We're going to look at Union Pacific. We. Can go ahead and take that drawn tool. Fibonacci. Tool. Going. Back to a a low. In the, trend and. Taking. It up to the high. There. And. Notice you may see some, various candle, formations, occur, out. Around, some. Of these fib levels. Notice. A kind of an example of a not. Quite a hammer I call. This a little bit of a mohawk there you got a guy there with a head got. His little mohawk there. The. Characteristic. Though. As. Far as finding, some support intraday. Traded pretty close to that 55 day moving average. Got. Back above that sixty one point eight did not close. Below it. We. Closed just, around that 50% level and those we look at today. Were. Above, that 50% level. Now. Some traders as we've talked. In the past about different. Techniques. As far as entry you know when price trades above the high the low day. Which. It did although it faded back a little bit here you. Know. That is a potential. Bounce, now. I want to do for illustrate purposes is enter. A trade. Based. Off the price coming, back above the 50%. Now. Head, prices go ahead and fade and be a swing failure absolutely. We'll. Go ahead and put in an entry put. In a potential. Target as well as, a stop. So. I'm gonna go ahead and right click on the chart and. If. One want to do the stock you know it is 177, dollar stock may. Not be suitable. Or if. One is practicing, on a smaller account, we. Could look at some of the options here. So. I'm going out to June. Take. A look at about 38, days. Considering. You know from. A trade up more days to weeks ones, typically not looking at the front month maybe looking at around 30 days or more. And. There's nothing wrong with going further out. Further. Out would. Be more premium, but, certainly if one doesn't need that time they can sell that premium, back this. Is just an example of more leverage. Now. If, we do this from a context. Of a call. We'll. Go ahead and look, closer. To at. The money. 175. Premiums. Are about, 395.
There. Now. If we go ahead and look to see where. That. Potential, target is potential target if we're looking at the 23%. We'd be at around that 176. Area. Now. If one wanted to they can go a little more into money if they'd like. Certainly. Would be buying more intrinsic. Value and that. Intrinsic, value would be at risk. Let's. Go ahead and use this one as an example do the 170, we go in right click and. We're. Gonna do a buy. I'm. Gonna do a buy custom, with stop and we're gonna actually, set. This up as a conditional. Order, there. We. Can also position size this for a maximum, loss even. Though we may have a a. Stop. To potentially, get us out sooner no guarantee, you would fill out a particular price. So. With this. Contract. $680. Maximum loss the premium paid. If. You go ahead and do. If. Let's, say we wanted to risk about a half. A percent of, this account, that'd. Be about, 1,300. Just, shy about $1,400, we have a net liquidating value of two hundred seventy four thousand. So. If, we go ahead and actually do, two. Contracts. And. Go back to the chart now one illustrate a point Francisco, says UMP just had a moving average cross over to the downside. A day. Or so ago how much would this play on the. Analysis, so. A good point so if we look at an example. Of a moving average cross over. This. Occurred here on in. This example of five cross and below 213 now. That's typically going to happen, on a significant. Retracement, so. Even though from a shorter-term standpoint. Prices. Have pulled back the. Intermediate, trend is still up so. Kind of the tide. Theoretically. Is still with, the stock the tide is still coming in. If. The trend breaks down and some, traders may use weather, at sixty one point eight retracement, or. Looking for more, of a major crossover, prices. And the averages, crossing below. Crossing. Below that. Intermediate, moving average. That. Would certainly be a change that intermediate, trend let, me know if that helps. Chuck. Says not an option trader but wondering if the option chain gives a stock trader, insight. On, how a stock will move either. Direction. Well. That'd probably be a talk for another, time, there Chuck actually in some of our options. Classes. I probably, recommend join. In the splash. On. A daily, basis, which is at. 1:00. Actually. You know it would be 12:30. P.m.. Eastern time, every. Day discussing. Options in. A different light there and there's. Various other tools that some traders may be able to imply, on how, the options market may feel. Some. Not necessary bullish or bearish although, one may look at various. Volume, and open interest there, but. Also, look at anticipation. On how much the market where a stock, may move whether, up or down so, certainly encourage you to do that as well as look at our, trading options course, all. Right so. We. Got the bounce. We got the option let's go ahead and put, in a conditional, order tied to that so. One. We. Can do it based off of. Price. Trading, above that. 50% level. Which. Is that around 170, 250. Now. You know prices already went above it. Will. Modify. Like. It hasn't done that now. One consideration, to liquidity. If one's using market, orders, remember. Market orders would fill at the next available price if there's a large spread between the, bid and the ask price, that, can add to the, cost of the tray I'm. Gonna make this. Believe, us has a day order since we're looking at the, day other. Traders may do a GTC, good. Till cancel. And. Then. On the. Stop we're gonna change this to a market as well make. That GTC. And. Then. We're gonna use conditions. For. That entry and exit I'm gonna go and move this over here a little bit here. Now. If I go and move next to where it says best there's. A little, here that appears if I click on the gear we. Can go and put in our conditions. So. For the entry, we're. Gonna say. UNP. Mark. Which. Is essentially, the last price for the underlying, is greater, than or equal to and then. On the FIB, areas 17250. Let's. Say we'll do an example of about. 20 cents above that, so. We'll do one 72, 70. Hit. Enter click. Save. And, then. For the exit. We. Can set a target, whether. That 23 level. Or that, higher level. Around. 180. So. Let's say if. Someone was a little more. Cautious there they, may be setting for a lower target you can go ahead and do that so, if I click on the gear. This. Is for this sell order. We. Can go ahead and put if the stock is greater, than or equal, to. Whatever. That target is I'll put in 170. 6.51. We'll. Save that we'll go ahead and bring that back up. Another. Way is as far as setting a stop. Now. One can go ahead and do. Some. Of the ways we've discussed in the past can go ahead and set a stop you, know 1% below, the low, of the day.
And. If. The price trades below there it'll go ahead and close that out. Now. We also did position, size to a maximum, loss if. One wanted to they can set, a an alert. While. They keep in mind you know alerts are not necessarily guaranteed, to inform. You right away although. A lot of cases they. Come through, instantaneously. You. Can go ahead and create an alert that if price goes ahead and goes, below that low. To. Possibly. Close out the trade. Or. Just, right at that Fibonacci, level, that. One 7071. Set. An alert. And, if. The price, closes. At. Or, below. That. Fibonacci, area. 170. Point. 71. They. Can go and put alert to possibly, drive to action, to, close. The trade. All. Right so we have that in place right there. So. If I go ahead and hit confirm and send and. Send. Notice. That went ahead and filled because the condition, was in place. And. Then. If price goes ahead and trades up to that 176, 51 it. Would close, out that trade, at the, next, available price you'll. Have to work in orders. There's. A sell order right there waiting. For a condition, you can see the little gear over, to the right you, click on that that's, a condition. Now. One. Thing that we can also do is. If. Once. The price goes ahead and hits that area it. Would go ahead and close it out. Another. Scenario is. Target. In that, previous high. So. If I go back and, right-click. On, that. Order. Cancel. And replace and. Click. On the little gear. And. Change. That to 178. And. There's a little bit of change but I'll just go and type in 178, and click. Save. Another. Scenario and. This. Would require, some. Management more of a daily routine. We. Can go ahead and set an alert out around, that. 23.6. Level. Right. Click on it, create. An alert. To. Do an example of close out half the position, or one, of the contract. And. Then. Move, the stop. To, more of a break-even although, keep in mind if wanted just to stop there's no guarantee, we'll be filled. At a break-even, price, but. Just kind of another technique, to manage, that, trait. And. If, that occurs then. One. Can go ahead and, adjust. The. Existing, order. Do. A cancel and replace. Go. Ahead and basically reduce, it to the one contract. And. Then. Go ahead and put in a condition. You. Know - if. The stock goes down a, little, bit, closer. That's sixty one point eight or. Wherever the entry price was for, the stock can, go ahead and put that in here. As well. Then. It was close around 170. 370, now, it's tough with time decay the option. Will. Not necessarily be, right, at its break-even price. Or. One. Can actually go ahead and put it in order just to buy, it back at a certain price. So. I'm just go ahead and plug that in. Okay. So as you can see that, monitor, tab is, where we can go ahead and actually continue. Managing, that, individual, tree. Alright. So. I'll. Go ahead and we'll let's. Go ahead and change that back, to. That. 160-170. 651. Actually. Know what I'll leave that in there and I'll just go ahead and manage it with these alerts all, right so what else we can do, I. Think. Ross stores, our OST. Now. Kind of same deal so. Some. Of the discussion, from, Francisco. You, know mentioned about that crossover, yes, we're sure to turn negative crossovers. And even some prices going below, that. 50, in this case 55 period moving average now. Just. Based off of that as a filter, some, traders may you know what, you. Know even though it may be a retracement, trade. You. Know part of my filter, you. Know put that in parentheses, I'm not saying me as my but thinking. As, an individual, may. Think that okay well if prices below an average, I'm. Not, interested, unless the prices back above it. Okay. These are actually, areas we're really anticipating. A potential. Reversal which, can certainly fail. So. In the case of.
Ross. Here. We. Do the same thing take the drawing tool. Draw. From the low. To. High. And. You see again an inside day now, notice that price was to get back above that fifty percent there, is a confluence, of that intermediate average. Now. Some traders may you know look for a little more of a, confirmation. If the price was to, actually. Trade above. That level. Let's, see some other ones here. LRC. X more. In technology. Now. Notice this one since, we're talking about averages this one is holding, an intermediate. Average. Go. Ahead and draw from. The. Low to. The high. And. Those intraday, held, that sixty one point eight all. That a make-or-break. Interesting. Phenomenon, as we see these natural, formations, seem to occur within. The market. There's. That fifty percent level we, can do the same thing here. Looking. At an example to pull this back. We'll. Go to the options. There's. LRC X we'll, look at a, will. Do the same will, look a. Little. Further out. Let's. Double check here. Let's. For real straight purposes, so we have some contrast. Let's. Go a little further out on. This. Now. There's, some weekly options while they keep in mind when one looks at some. Of the other. Non-standard. Contracts. Or expirations. One. May see a larger, spread, between. The bid and the ass so kind of at the money we're seeing spreads of about. 30. To 25 cents, if we go 38, days out on the standard contract, you know a little closer here although. Yeah. A little bit closer there. Well. Let's uh let's go ahead and look at 45, days out and. We'll. Go ahead and go again. We'll focus, a little more at the money. Will. Do by. Will. Do by custom with stop for, an example. If. We do two contracts, on this one. Position. Size for maximum losses would be 1950. Now that'd be you know greater than half. A percent of this account but, less than 1%. One has to determine, what are you comfortable with risking, on any, given trade. So. We can we'll save that there. Now, if we go ahead and actually, I. Should. Do this a little bit differently here let's, right-click. We'll, do buy custom, with stop. Got. Two contracts, we'll just leave that there. Let's. See going back to the chart, question. Was. How. Do you choose specific low to draw the fit from. Well.look, form a standpoint of time. Frame where, the shorter term or intermediate, if. One was looking for it from a, shorter. Time frame you, know they may be looking at lows. That may have occurred just over previous. Week or two notes, looking at these averages, here at, around a thirteen period we have some lows here now. If I go and draw a fit, from the low to the high. We. Already know from a shorter term that, the shorter term fits have already been violated, you. Can even see that sixty, one point eight there is a hammer there but, there is a failure, prices. Failed, so, there's no setup there anyway. Focus. In on more. Of the. Intermediate. Rent looking. At in this example a larger, average. Is. Going. Back. And. I'll say I cannot talk. And. Do things at the same time, is. To go back and look at.
More. Of the intermediate. Rent now I can go all the way back to the, low here in March. You. Know if I draw from that low to that high. You. Know prices at around a fifty percent thirty. Eight percent level which. You, know is. Reasonably. Expected. In trends. That, prices, may pull back a third or a half so. From you, know going back to the spring even, though there's been a pullback in the market you know the trend is still intact. Also. Supported. By an intermediate. Moving average in this case the. Fifty five acting, as support. But. Also there's something to be said for you, know more recency, as well now a trader. Can go ahead and trade off of these love. Let. Me go more. From. The more recent load that at least attempted, to come closer, to that average would be right here, and. If I go ahead and draw from that low to, that high. We. Can see that. Sixty, one point eight at fifty percent level come into play. And. On. Putting, this practice. Trade in, practice, we can go ahead and click, on the, conditions, as well. Looking. At that fifty percent level one ninety one eighty six, let's, do twenty cents above that. I'll. Do another example of a market order. And. We'll, go ahead and put, for. The entry. Greater. Than or equal to. And. Looks. Like it got truncated, there. Probably. Need to update my. 191. Eighty six so we'll do one ninety, two zero. Six one. Nine. Two two zero six. Greater. Than. Or. Equal to one. Ninety two point zero six. All. Right so I'll be a trigger for the entry and as. Far as a stop can. Do the same thing whether, target. That previous high or target. The. Quarter. Retracement, to a 123. We'll. Go ahead we'll do that. We'll. Make that a stop. Correction. Stop. GTC. Or. I should say correction, market. GTC. Because we're doing this all conditional, on the stock. And. The. Target. Will. Do two zero. 123. Okay, so that's just again just one way. Of utilizing those fibs. And. You. Know we don't know if this bounce in the market is going to hold as other, bounces, have or this may be a swing failure this, is where some traders after prices may have retraced, in this. Example 50 percent of its previous move, over. The last month or so there. May be a technical. You. Know scenario. As far as being undervalued. That. Traders may look to buy that lower price anticipating.
That Prices, would recover if. Prices were to fail well, then that would generate, a non. Desired outcome and that would end up being a loss. Only. Get some of your questions there and appreciate the feedback folks. Raphael. Says John. Regard moving averages using five 1355 others, commonly referred to 50 200 toss default, is nine can you comment on selection, of these periods and where, they may be more, applicable I. Have. Talked about this, in the past, Raphael. As. Far as looking at a, different, series you mentioned 50 and 200, you, hear a lot of talk about the. The. Death cross and the Golden Cross you. Know 200 a represents, a. Longer. Term trend if you think about how many training days there are in a year there's. About 200. Plus. Training days so. That 200 a represents, that longer trend a 50. Period well. That's a quarter of that 200 days so more of a quarterly average, more, intermediate if. You break that down even more you, know a 20 period, 20-day, is. You, know the average price, over the month it's about 20 trading. Days in a month on average, is actually 21, which, is a Fibonacci number so. You'll, also see some, traders. Use and is in this examples, that I've used some. Fibonacci, series you, know 5 . 5 trading days in a week Fibonacci, number, 13. That's. The next followed. By 8 is another Fibonacci number 13 is approximately. Half of the calendar, cycle. And, in 55 is not much more of a variation than the 50 but they all represent. A, similar. Function, 5. . very short term 13. . a little more of the monthly. 55. More of the quarterly and looking for the relationships. Of those trends, so. In, our example today, on Fibonacci, we. Basically, recognized. Examples. Of intermediate, trends, that, have still been up. But. Over the shorter, turn have retraced, and. Trend. Traders may look for that as a potential entry, and if. Trend traders are looking for those types of entries swing. Traders may look to capture, some, of that shorter, term momentum as well and, so that's what we applied here today hopefully. It answers the question. And for, Zod, says to answer. Your hi Charles, dialog in his book the power of habit, explains, why multitasking. Is a myth okay. I'll have to go ahead and take. A look at take, a look at some of that, so. Folks hopefully you learned something, new here today we went ahead and went, through a couple examples. Utilizing. Fibonacci. You. May see this tool come up as well, from. Time to time and, are technically speaking on Mondays reversal, and bounce patterns, or we may use that as a, way of projecting, targets. So. If we also have, met our objective. Here for today which, is showing you how to use Fibonacci, retracements. To anticipate the, bounce, also. To be able to illustrate, potential. Entries, which, we were utilizing, a 50%, level as well, as targets. Whether. The previous high which would be the zero level or. The, quarter, level which may be a more conservative, area. To look for, we. Position, size to, maximum, loss, however. If, prices, were to close below, in this example is sixty one point eight that, could be an example of exiting. The tree because the lows would, potentially, be taken out just, similar to other swing examples. We've looked at and. Likewise. If there's more positive, movement, for. Instance to that quarter level one, can scale out of the position, and adjust. There. Other. Exit, to closer to a break-even. So. It looks a little more conversation there as well while everyone's, looking at the chat let. Me push out a survey. Out to you as well we'd, love to get your feedback there, looks, like you came through correctly if you can't go ahead and click, on that now we'd. Certainly love to get your feedback, once. Again it's good to be back even though it's for two weeks there. But. We'll be back next week and we'll get and review these trades, to, see how, they played out see. If the market did hold this level, and. There's a psychological, factor that goes into that folks you know.
It's. It's typically where people. Feel uneasy where, sometimes those opportunities, may appear. Even. Though it may not be a desired outcome. Willing. To take a reasonable, level of risk to. Potentially. Have. A bounce in the market even. Though. Probabilities. May not necessarily be, in your, favor. But. The thing you also have to do is to be able to practice to build up your confidence when. You see market conditions, the way they are and it. Is a news driven market with trade, and certainly. Things can basically throw, the, charts and the technicals, for. A loop there but. We still need to practice we need to take that knowledge and apply, it in the wisdom and hopefully. You've. Been able to pick up a little bit of that here today prasad. Thank you for your feedback as well as everyone else go, in and click on that survey. There, remember. Coming up next, we. Are have, futures. Getting started with futures with Barbara Armstrong that's actually gonna be at the bottom, of the hour so go ahead stay tuned for that we're. Gonna go and close out for the day actually. Correction, that will actually be at the top, of the hour, which. Would, be in about another 40 minutes getting started with futures but Barbara Armstrong so, let's go ahead and make sure that we understand, that, in, order to demonstrate the function you have the platform we had to use actual symbols keep, in mind TD Ameritrade does not make recommendations. Or determine, suitability of, any security or strategy, through, the use of our tools any, investment, decision you make in your self-directed account, is solely. Your, responsibility so. Thanks so much for being with us here folks we'll let you go for the day happy. Trading and, see you again next week bye now.
2019-05-16 11:29
