I've just noticed some similarity between GNS trading on Monday and today and I thought I'd post the relevant 5 tick charts of the initial morning run on the two days.
The interesting thing for me was the application of the fib lines.
On both days GNS made an initial high, then pulled back and then made a second high. If I applied fib extension lines when the first pullback happened, so that the 38% retrace line coincides with that first pullback, then the 100% line was ultimately the day's high.
On both days then, the application of the fibs in this way would have given you the ultimate days price target. Of course you would have had to had the nerve to hold during the first pullback to achieve this target.
Alternatively it could have given you an exit target for a second trade, assuming you had sold around the first high.
Having said all that, I'm not sure how often this pattern would repeat and also coincide with fib levels, but I am going to apply it to other situations and see what happens.
The first chart is Monday's and the second is today.
