Hubert Senters here.
Let’s take a look at Amazon and the reason we’re taking a look at Amazon’s because we’re talking about Fibonacci. A lot of people have very common questions. Where do you draw Fibonacci? So first you’ve got to figure out if you’re going long or short. Number one census’s Amazon in a massive uptrend. I don’t want to go long on that creature now. Depends on how long term I’m going to hold this. If I was going to wait for a real beat pullback. I would draw my fib from right here to from the circle to the square. I’m going to go. Let’s do that one first.
So if we were going to say from point one to point two we would say a big pullback for Amazon would be down to $1,638 and we’d be buyers. It’s going to take a while for that to happen. So let’s zoom in here and go up to other points that we can look at. And usually they’ll retrace about 50 percent when they’re nice and healthy.
So we can draw from this point to that point. That would be one option. So we can go point one, point two and pull back to $1,832 to $1,810. That’s not bad or if you want to tighten up you could go from this most recent beginning of the buying into the selling there. So right here we go point one and then point two and you can see, you could have been long out there.
I kind of like that when we did just previous but that’s how you do it. That’s when if you’re going to go long you’re going to draw from low to high. In the next video we’ll talk about shorts and we’ll draw from high to low.
Good luck. Hope it helps. And I’ll see you on the next video.
Hubert.
