Hubert Senters here.
Let’s take a look at a stock. The symbol is PDD so it’s in a pretty good uptrend here. It’s above the turning line and the standard line.
If you don’t know that’s the yellow and the purple line. It’s above the cloud which is this little weird thing here.
And it’s trending according to the ADX so I think it’s got a shot to higher. Let’s figure out how much higher in the intermediate future that will be.
So what I’m going to do is I’ll zoom in here. I’ll zoom out first. Let’s go to a monthly chart. That’s what it’s doing on a monthly.
So it looks like it went IPO in late 2019 has been doing decent ever since. So I’m goin to go daily. Now, I’m going to zoom in here. I’m just looking for three points.
A high. A low. And then another low or high. Or you can do it like this. A low. A high. And then a higher low. That’s an easier way to think about it.
So then I’m going to grab a tool in trade station. It is called a Fibonacci Price Extension Line. In your software it may be called something totally different.
But it’s going to look like this once I click on it. I’m going to click once. Drag drop click again. And then drag drop click again so click, click, click.
Low. Low. Higher low. And then it will project for me in the future some interesting targets that I can go for.
So now let’s do it. I’m going to go from down here. These two are equal so I’m just going to go right here.
Click once and drag up here to this most recent high. Click again and then click again. Now, it’s saying that I did that candle. I didn’t.
It’s very easy to fix. You can just grab it and drag it over here and my numbers are not going to change that much.
So low, high, higher low. Next target $193 and then $212. If you’re going to hold it for a little bit longer then you can see $228 and $239.
Good luck. Hope it helps. See you on the next video.
Hubert.
