How to use a fibonacci trading method to pick a stock market winner

"Fibonacci Trading Method"

Here's a possible stock market winner ... a fibonacci trading method that looks for history to repeat

What you will see here is an example of a possibly profitable trade using Fibonacci price retracements. What follows is a trade setup to the long side using a sound fibonacci trading method.

Check to see if history is repeating

What I mean is, see if a stock is reversing at a Fibonacci retracement level. If it is, then it is likely that the stock will continue.

Here's Micron Technology over the last week on the thirty minute chart.  The stock looks like it found support at the 62% retracement level of the recent up swing.

A sound fibonacci trading method looks for additional evidence that a reversal in price is likely.  Looking for retracements on a smaller time frame is one way to do just that.  Here's the same thirty minute price chart with the retracement levels marked off from the more recent upswing.

The thirty minute chart paints a picture of the stock moving higher and higher.  Moving down to the ten minute chart and applying fibonacci retracements to today's price action shows the stock finding afternoon support right at the 50% retracement level.

Traders will take a long position as the stock trades above today's high of $13.35.  If a position is taken, a protective sell stop goes below the 50% retracement (for traders who like to keep a tight stop), or just below today's low of $12.91.

Traders of this site will recognize the sound fibonacci trading method spelled out here.

Trade well!!!

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