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Monday, April 02, 2012

The Fib 123.60 Extension Pit Stop

I've seen it over and again:  as the price breaks through the current range, the Fib 123.50 extension level is often a pit stop and can be faded for a scalp if you want to be naughty.  If that level is a confluence with another support/resistance, then the odds are even better.

This morning, I did a quick scalp on SPY.  At the time the Fib 123.50 level was visited the STO on the SPY 5 minute chart was around 90, giving me some courage to short for a .24 profit.

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