Fibonacci Day Trading

Fibonacci day trading example using the 10 minute bars for the QQQ.  The day following the US Thanksgiving holiday, the QQQ gaps above Friday's high.  The stock briefly moves higher before starting to trend lower.  Stocks often fill gaps and the QQQ is no exception in this case.  For those interested in Fibonacci day trading, here's a good example.

Using Friday's low and the Monday morning high, the QQQ pulls back to the 38% retracement level before moving higher.  

Looking at only the trading on Monday, there is an ABC move off the high that targets the same price range that the 38% retracement from the larger time frame.

Right in the targeting price range, the QQQ forms an inside bar - a sign of indecision with the short term downtrend.  Once the stock trades above the high of the inside bar, traders take a position.  From there, the stock advances ~$0.30.

Fibonacci day trading is just like any other trading using fibonacci methods.

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