Tag: fibonacci retracements

How to Find Trading Opportunities in ANY Market: Fibonacci Analysis

Posted on by The INO.com Team

By: Elliott Wave International

Elliott Wave International's Senior Analyst Jeffrey Kennedy is the editor of our Elliott Wave Trader's Classroom and one of our most popular instructors. Jeffrey's primary analytical method is the Elliott Wave Principle, but he also uses several other technical tools to supplement his analysis.

You can apply these methods across any market and any time frame.

Learn how you can get a free 14-page Fibonacci eBook at the end of this lesson.

The primary Fibonacci ratios that I use in identifying wave retracements are .236, .382, .500, .618 and .786. Some of you might say that .500 and .786 are not Fibonacci ratios; well, it's all in the math. If you divide the second month of Leonardo's rabbit example by the third month, the answer is .500, 1 divided by 2; .786 is simply the square root of .618.

There are many different Fibonacci ratios used to determine retracement levels. The most common are .382 and .618.

The accompanying charts also demonstrate the relevance of .236, .382, .500 .618 and .786. It's worth noting that Fibonacci retracements can be used on any time frame to identify potential reversal points. An important aspect to remember is that a Fibonacci retracement of a previous wave on a weekly chart is more significant than what you would find on a 60-minute chart. Continue reading "How to Find Trading Opportunities in ANY Market: Fibonacci Analysis" →

Three Reasons You Should Buy Amazon.com Inc. (NASDAQ:AMZN)

Posted on by The INO.com Team

Today I'll be looking at Amazon.com Inc. (NASDAQ:AMZN). At this point in time, the name Amazon is synonymous with online shopping, but Amazon does quite a bit more than just that. Amazon also runs a huge cloud infrastructure hosting service that has revenues in the billions of dollars. Amazon is constantly rolling out new services that are all designed to help sell more products. They are even coming out with a payment service for merchants that can be used on a smart phone.

Jeff Bezos, the genius behind Amazon, recently purchased the Washington Post. I'm not sure that this paper is going to make Jeff any money, but it is going to win him a lot of friends in Washington DC. Why would Bezos care about a newspaper? I don't think he cares about the newspaper itself, but rather the power the Washington Post has with politicians. What he cares about most is not having regulators come in and create problems by making more regulations than are necessary.

All that aside, here are three good reasons why I believe Amazon is going to have a very good fourth quarter.

1. Technically the stock looks good after pulling back from recent highs it made in July around the $360 area. The stock found support right around $280 and an important Fibonacci retracement level at $310.

2. Yesterday, Monday the 18th, the stock of Amazon flashed a weekly Trade Triangle. This action reaffirmed that the longer-term trend has resumed and should now be moving higher.

3. The stock is now in very strong hands with all the Trade Triangles green, indicating a strong upward trend.

CHART LEGEND
1. Monthly red Trade Triangle indicates the upward trend had reversed.
2. All Trade Triangles are now green indicating a strong upward trend.
3. Green weekly Trade Triangle indicates to cover any short positions.
4. Monthly Trade Triangle turns green.
5. A red weekly Trade Triangle indicates exit long positions.
6. New weekly green Trade Triangle kicks in at $335.
7. The RSI indicator is trading above the 50 line indicating a strong trend.
8. The MACD indicator is showing the trend is now positive.

I still believe that Amazon.com Inc. (NASDAQ:AMZN) is a powerhouse to be reckoned with. Amazon's only real challenge will be regulations coming in to squash what is a shining success in entrepreneurial-ism and capitalism.

Today, I'm seeing some profit taking coming into the market and I believe that this presents an opportunity to pick up the stock of Amazon. Currently Amazon is trading just below our original Trade Triangle buy ($335) signal.

Every success with Amazon and MarketClub,
Adam Hewison
President, INO.com
Co-Creator, MarketClub

Triangles Offer Traders Important Forecasting Information

Posted on by admin

By: Elliott Wave International

These days there's no shortage of books about trading. You could read for months before you find a book that applies to your trading style.

The free 45-page eBook -- The Best of Trader's Classroom -- is specifically for Elliott wave traders. This excellent eBook will save time and deliver the knowledge you want.

It's written by Elliott wave trader Jeffrey Kennedy: He had individuals like you in mind when he said:

I began my career as a small trader, so I know firsthand how hard it can be to get simple explanations of methods that consistently work. In more than 15 years as an analyst since my early trading days, I've learned many lessons, and I don't think that they should have to be learned the hard way.

The Best of Trader's Classroom offers 14 trading insights that you can use.

Consider these examples of what you'll learn: Continue reading "Triangles Offer Traders Important Forecasting Information" →

Best Buy (NYSE:BBY) Implodes

Posted on by The INO.com Team

Best Buy Co., Inc. (NYSE:BBY) was one of the top performing stocks in 2013. Best Buy (NYSE:BBY) reported on Thursday that total revenue and sales at its established US stores fell in the all-important holiday season due to intense discounting by rivals, supply problems for key products and generally weaker traffic in December. After starting out the trading year of 2013 at $12, this stock performed like the energizer bunny and kept going and going and going for most of the year. It hit a high of $44.60 on November 13th, a month before the all-important holiday season reality set in.

What Does This Company Do?

Best Buy Co., Inc.(NYSE:BBY) operates as an e-commerce and physical retailer of consumer electronics in the United States, Europe, Canada, and China.

Was Best Buy's Implosion Predictable?

No one can predict with 100% certainty what's going to happen in any given market. What technical analysis can do, and does do very well, is put the odds in your favor and give you a high degree of confidence that something is going to happen. It also acts to protect your capital when things go wrong in a market. That is done through the use of money management and discipline, both of which I talk about frequently on this blog. Let me illustrate for you how two simple technical tools would have helped you avoid today's disaster in Best Buy. Continue reading "Best Buy (NYSE:BBY) Implodes" →

5 Must-Know Indicators - Technical Analysis For Beginners

Posted on by The INO.com Team

Using Technical Analysis Indicators

Technical analysis is a method of examining past market data to help forecast future price movements. Using different tools, indicators, and charts, traders can spot important price patterns and market trends, and then use that data to anticipate a market's future performance.

Technical analysis is based around a market's price history, rather than the fundamental data like earnings, dividends, news, and events. The belief is that price action tends to repeat itself and the patterns can be identified and used to define a market's trend.

Since MarketClub offers a variety of chart studies that can be helpful in your technical analysis, I'd like to highlight several of the most popular technical indicators and how you can use them.

The Moving Average Convergence/Divergence (MACD) Indicator

Continue reading "5 Must-Know Indicators - Technical Analysis For Beginners" →