Is it broken or will it reverse?
Paul,
Wonderful analysis; now tell me what to do! :)
Prior to the close today, I bailed out of TNA and jumped into TZA. Sold the TZA 2 minutes before the close. This is the only advantage of watching the soap opera, called the stock market: one can reverse course at an obvious inflection point.
But Trev-- are you out there?-- the Jesse Livermore rule about not wasting time during times like these sure proved correct.
Peace all,
What time frame are you looking for 1 higher lows and 2 higher highs (if long)?
[QUOTE=Billy;18808]Nickola,
When initial stops on the 2/3 TNA/TZA positions are not hit, I wait for one higher low and two higher highs (if long). I draw a Fibonacci retracement grid from the first low preceding the higher low to the higher high and keep updating the Fibonacci grid if new highs are made. I have a trailing stop for 1/3 of TNA at a 39% retracement (failure of the 38.2% Fibo level) and another trailing stop for 1/3 of TNA at a 51% retracement (failure of the 50% Fibi level). The Fibonacci computations are made on TNA/TZA, not on IWM.
Billy[/QUOTE]
Hi Billy,
Are you looking at 30-min (or shorter?) bars to find the 1 higher low and 2 higher highs?
Thanks,
Shawn