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Technical Analysis Thread, Trend Continuation Setup in The Technical Laboratory; A strong morning trend is likely to continue in the afternoon. So how you find a setup? One method I ...
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Trend Continuation Setup  

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Old 09-26-2006, 11:31 PM
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A strong morning trend is likely to continue in the afternoon. So how you find a setup?

One method I use after a strong morning trend is to let it sink a little bit while the profit takers come on. I will then plot a fibonacci retracement line from the swing low to swing high and look for support in the 50% - 61.8% fib retracement zone.

Notice in the chart, the 61.8% became the dead support and the markts took off for another 70 points.
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