daytrading june 1 afternoon, page-5

Repost from morning thread.

MemeFX,

This one is tricky (as most are). When there is noise, I usually switch to a weekly chart. Makes it much more clear.

All fibs are subjective. There's no wrong or right, only in hindsight.

My rules are that :
1) Reversals normally show fib supports.
2) The middle of long candles will normally slice through a fib 50%.
3) Where there are several long candles, go by the most recent.
4) Dojis are markers for fib supports. I try and line up as many of those as I can.

With CFE, there are a couple of fibs that fit well. One has it as low as 29.0c for a good risk/reward entry (see below).

Another has it at 26c. Stretch the fib shown below so that the 38.2% goes through where today's drop started (44.5c).

I'm self taught so please don't take my word as gospel. It's just my 2 cents from my observations. Would love to hear other's thoughts.

And of course, fundamentals always override TA, so knowing something about 'why the drop' is handy.