Pullback and Updated Emini Fibonacci Grid Dec 12
In the event price doesn’t extend another six days higher – or infinitely higher – we’ll see another reasonable retracement develop.
Let’s update our Fibonacci Grid to plan for this possible pullback should it actually occur.
Here’s today’s updated Emini (@ES) trading levels for your trades:
The way traditional Fibonacci Grids work is that we draw a Fibonacci Retracement Grid from a swing low to a swing high to determine the main “Fib” retracement levels.
The problem in real time is that you don’t quite know when price will reverse (short-term) and pull back from a high as opposed to making new highs consistently as has been the case in December.
With that in mind, IF we’re seeing a short-term pullback down from the 2,250 level, THEN our “first Fib” target becomes the 2,220 level.
If not, then keep trading long/bullishly into a short-squeezed breakout market and wait to update your Fib Grid.
Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.
Corey Rosenbloom, CMT
Follow Corey on Twitter: http://twitter.com/afraidtotrade
Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).”
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