Ep 72: Applying Fibonacci Retracements to Stock Charts
★ SUMMARY ★
Hey this is Sasha Evdakov and thanks for joining me here on Let’s Talk Stocks. It is February 18th, 2016 Episode Number 72 Applying Fibonacci and Retracements in the Stock Market. This week’s episode is all about looking at Fibonacci retracements and just getting the practice behind Fibonacci retracements.
That’s what I want to share with you, if you’re new to the stock market then you might not want to really do a ton of practice on Fibonacci just yet, until you have the volume down, until you understand how stocks moved, the behavior. You might want to take a look at one of the other courses that I have available and then get into Fibonacci.
Now I did go over the stock market today in the critical charts specifically on what’s going on here with the SPDRS and the SPY, along with the market in general. Right now we had a nice pop from these lows over here at the 182 level.
That is in part due to hitting the support level. I talked about this on the last week’s rapid recap or Let’s Talk Stock sessions where we could be bouncing at this price level. Really I was looking at the lows from the January 20th and we came right into that.
We came right into that and bounce, right with that OPEC announcement and we were also slightly oversold. So we came in we bounced and part if you look at the volume you can see right here the previous swing lows here on these volume bars, where the biggest amount of trades happened here was 506.6 million on the swing lows we tried to break it on 286, it didn’t happen.
We tried to break it on 219, it didn’t happen so we’re going to take them higher. So we’ll see if the market rejects at this price level. You’re basically watching this 1930 or the 1950 level as key levels and if it breaks through that you’ll see the 2000 level but if it rejects it you could see a comeback to retest this 1810 – 1812 level.
Keep those levels in mind as you’re going through the market but if you want to see the more in-depth lesson recap about these stocks then take a look at your critical charts account on the website, which I went in detail today about it the.
In either case today what I want to do is talk about these Fibonacci retracements because stocks, they don’t go straight down. They don’t go straight down even though sometimes it feels like they go straight down. Like here it seems like we went straight down but really we had a few pops in there.
We even had a pop over here from January 19th 2013 to February 3rd, so we had some pops in there that do happen and you have to be nimble about how these pops, move, react and behave in the market.
Fibonacci is just one of those levels, it’s a guide that you can use, in order to give you some insight on what is a healthy pop, what is a healthy move for that stock, what is a healthy retracement for that stock and use it as a guide, putting it together with volume, putting it together with the price, the action and along with your other support and resistance levels.
You use it all together and if you’re new to the market, I’m just going to share some insight with you on some practice behind it but really for the people that have the course you understand how it works and function so this will be a good practice session on How to Apply it to the Current Market Charts and how to use it.
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