AAPL opened on top of its 20-EMA on the 15min chart. While the previous day saw a sell-off followed by an impulse move and slight retracement into the close (giving it a bull flag look). So, we're looking for a continuation of the impulse move going into today with a potential test of the highs.
What I did yesterday was draw a Fib. Extension line from the pivot low-to high-to low which gives us a potential target going into the next day. It so happened that the Fibs projected a 100% retracement up to Wednesday's highs (score 1 for confluence!).
While letting the first 15-minutes take its course we look for 3 things; a place to buy, a place to sell, and a place to run (in case it goes against us). With the first 15-minutes gone I put Fib. retracement lines across from High to Low and see if the bullish retracements hold (above 61.8%) and to see if a projection coincides with my theory (test of PDH). It so happened that the 127.2% external Fib. retracement lined up in that same PDH area (score 2 for confluence!).
So, on this smaller time frame I was looking to buy the 200SMA, sell the PDH, and run from the PDC if it went against me. It was, at it's worst, a $0.50 risk for a $1.00 gain. Unfortunately I blinked and price ran without me.
This 2-min chart is a bit noisy, just let your eyes soften and it may get clearer :)
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1 comment:
needs m0ar trendlines and moving averages
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