This is amazing
Thanks so much for that link. Watched several episodes and now finally starting to understand why following the Fibonacci series is so important: Albots!
So, my simple analysis of trading today: It was a day-long push down at just about every fib level, and you could draw and redraw them in real-time and see the drop unveiled. I didn’t trade them today, and I certainly won’t day trade them, but it will help identify turning points in the trend for my very SLOW rolling of CCs and CSPs.
Here’s a few graphs to illustrate. Right out of box, the 1st push down only bounced back to 0.382 level before further rejected (not a good sign, and set the tone for the entire day). The YouTube reference that Yoona provided likes to trade the 0.618 level, so clearly the bears were in charge.
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Then, extending from the previous “high/rejection level” to the 10:15 low, shows the next run up and rejection at 0.618, ok more reasonable albot profit-taking level. Then the SP quickly dropped back to near zero, followed buy rise and rejection at the 0.500 level. Then continued another cycle to the 0.236 level. Hmmm, starting to see the pattern here.
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Alternatively, if one kept the early high as the starting level, and the 10:15 MMD as the low, the retracement/rejection levels are still major Fibonacci numbers, just lower.
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Finally, for the day trader, pinning on one of the late morning waves, one can easily see smaller up/down action that reverses on the major 0.500 and 0.618 levels. Absolutely amazing. Definitely important knowledge for anyone actively trading, options or otherwise.
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