Ciao Traders !
Remember the chart below I posted Dec the 1st 2019?
Here below is how I got that area where we could have a possible bounce
No magic, no corona virus, no news.. just math
After 105 years the Dow respect its' Fibonacci perfectly.. sounds strange? sounds crazy? Well. the proof is the chart: wave 3 is typically the 1,618/1,75 extension of wave 1
Not always, but typically, can go up further, but a reaction at the 1,618/1,75 area is probable anyway. In my view is the best place to short or take profit, worse case, since you normally have a reaction to the downside, I put my short trade at break even and keep watching..
My personal view: I stopped long time ago listening to the news and I started relying on math and tangible things.
It's possible to go back up in the orange area before having an important retracement, but that will not change the overall structure
Happy trading to all !
Disclaimer:
This is not financial or investment advice
I am not a professional in the financial or investment fields
This analysis is just for entertainment purposes
Do not follow what I do or do it at your own risk