Three White Soldiers – Get In and Three Black Crows – Get out

Three White Soldiers – SPY S&P 500 ETF

Image 1 explains the Fibo numbers come from the connection 0->1->2->3. Image 2 explains connecting S-1, S-2, S-3. Image 3 explains SPY is not reached 423.60%,about level 325?. This means current market down is adjustment, not drop without hope. Circled marks in Image 1 & 2 means get in point using three white soldiers. Like this, we can apply to find get out point using three black crows.

s&p 500

s&p 500

s&p 500

The most difficult thing in technical analysis is to maintain objectivity. Depending on the time frame, the results may be different. For example, the 1-year chart is up, but the 10-day chart is down. It is a question of which standards should be set. The only thing that can be free about this headache is the use of three white soldiers and three black crows. As a shot-term swing trader, I use mainly a 15-minute chart. Please see images for explaining get out idea if three black crows formed. You can see that the method of connecting the A-B-C in image 2 recommends selling at a higher point.

S&P 500 chart

S&P 500 chart

Chart Analysis – Facebook Amazon Apple

All faang stocks formed THREE BLACK CROWS which are shown in the following image as 1,2,3 numbers.

FB – Possible low is 105.76, 423.60% of 1st wave
AMZN – Possible low is 1241.35, 423.60% of 1st wave
AAPL – Possible low is 133.40, 423.60% of 2nd wave

When the rising or falling energy is generated, the level of 423.60% of stock wave must be reached. The level of 423.60% can be the value from the 1st wave, from the 2nd, or from the 3rd wave.

Facebook chart

Facebook chart

APPLE chart

amazon chart

amazon chart

Chart Analysis – SQQQ

Nasdaq tech short ETF SQQQ is still alive. Today morning this reached 423.60% of last day’s wave and went back. (image 1)

423.60% of 1st wave reached last week.(image 2)

sqqq stock chart

61.80% of 2nd wave is 13.28. Now SQQQ price is 14.03.(image 3)

13.28 and 12.02 are very important. Because this SQQQ already formed three white troops(image 4).

This mean this guy will find another 423.60% of one of uptrend waves. So tomorrow need to watch 13.28 level. If go down under, maybe #TQQQ related stock will be good in the future. (image 5)

Strategy for riding the rising stock at the near bottom

This time how to ride the rising stock at the near bottom using Fibonacci extension and fan line. This can also explain how to attack major target levels of Fibonacci extension like 61.80, 161.80 and 261.80%. Please be noted that do not enter at 423.60% level!

See below chart and check circled spots.

netflix chart

The first job is drawing Fibo extensions and Fibo fan line connecting low and next low point. This is the low to low connect method. Also we can use continued price high to low connect method like fibonacci retracement. Will explain this at next posting.

Rising of stock price means going over to the upper level of Fibonacci extension. Normally the upper level will act as a resistance point. There are three ways to breaking up this level.

1) Simply going over 61.80% => Fast shutting up, so will likely go back to 61.80% or under because of no supporting. Not recommend to enter
2) Go over 61.80% with Fibo fan line => Will be OK. Continuing Fibo fan line or 61.80% level will be a base line for profit cut or loss cut.
3) Go over 61.80% with Fibo fan line and Simple Moving Average(SMA) curve => 100% success! Continuing Fibo fan line or 61.80% level will be a base line for profit cut or loss cut.

Like this, we can apply combination of Fibo indicators and SMA curve to figure out the optimal enter point. Please see three circled spots on 61.80% and 161.80% level on above chart. The end of one white candle went over upper target level and we can see SMA curve or/and Fibo fan line is placed on the white candle in a cross up or push up configuration.

When looks stock is rising from bottom, just wait. This can be a bull trap. So just wait until it will reach 61.80% level. And then checking is there any Fibo fan line or SMAs on the white candle which is ending up at the over of 61.80%. If yes, go enter and enjoy.