Using Fibonacci to guide your daily trading plan

A good Fibonacci (FIB) on a higher time frame chart (hourly) should last you weeks or months.


Taking Nikkei 225 as an example, A FIB was created since 21st June 2017 and it has lasted us till today.


On 29th Aug 2017 -- price finally reached FIB support -- 19,230 (event: this gap down was triggered by North Korea's missile). It then start to climb up to resistance 19,635. At this important support level, we can also see SkyLand coincide with this level.


On 1st Sep, 2017, a double top formed at SkyLand together with Fib resistance level, this up move from 19,230 is also an *ABN-U. Double top target reached this morning on market opening. It gap down again on opening (event: North Korea nuclear test).


SiMSCI on the other hand, has also reached it resistance level 366.5. The FIB was created since 28th July 2017 and has lasted till today.


Unlike Nikkei, the first North Korea event did not send the price to support level. It gap down, but did not touched support level.


The last 2 trading days (last Thursday & Friday) was sideway (it has reached FIB resistance level). This morning, price gap down and ran back to support level 359.9.

For Nikkei, do you think the position sizing for 29th August & 1st September are having the same weightage?

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