Trend Continuation Setup

[Soultrader 12]

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.