ALWAYS BET ON BLACK - Update 21PLAYING THE BREAK OUT - FIBONACCI EXTENSIONSThis is probably one of the most difficult things to execute properly. One thing we don’t want to do is cut our profit short so Fibonacci Extensions can help establish some common exit points. See Update 17 for more detailed instruction on Fibonacci ExtensionsFirst look at the general conditions in which we started the day with the longer view of things. In my chart I had drawn a fan from point 1 to 2 to have a clear view of the down trend.When we hit 30K the first time I drew the Extension lines. This gave me two outs at 35 and 42 in the event that we would go for the break again. This did not happen but it got me thinking about what could happen next.The bounce retreated to the 50% retracement line and then moved horizontally for a while before slowly trending upward. When we approached the 30K line for the second time, I zoomed in to the 1 min chart and drew a new Fibonacci extension from the bottom. This new setup gave me a first out at 35K, the second out at 37k, and a third out at 43K. By the time I finished all the analysis the priced had moved beyond 35K so I set a sell at 37K and got executed shortly after.The price bounced back from this resistance line and attempted a second time which failed again. The market was crazy at this point! A double top had formed and a subsequent sell off gave me an opportunity to buy back. I bought too early and should have paid attention to the Downward trending MACD which could have pointed me to a lower priced re-entry.I am long overnight as always. In these bullish runs I am always long and make short sells if there are good profit opportunities.BTW if this market attempts another run while I sleep (doubt it) the first out would be at 44k; i see someone has already put a selling wall there! If this is penetrated the second out would be at hmmm.. outside the chart.. maybe around 50K.Buy-BlackShare this article:The following two tabs change content below.BioLatest PostsBuy-BlackLatest posts by Buy-Black (see all) ALWAYS BET ON BLACK - Update 33 - May 25, 2014 ALWAYS BET ON BLACK - Update 32 - May 24, 2014 ALWAYS BET ON BLACK - Update 31 - May 16, 2014
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