...when price gaps above my daily Resistance pivot (or below my daily Support pivot) I'm going to snap Fib. lines between the two pivots to get my extension S/R. Seems to work well.
Here was today's activity in FCX and POT, both of which gaped above their respective Resistance pivots, so I snapped a Fib. line between the two. The extensions gave excellent target potential.
The setups I include on this blog are used in conjunction with the 3/10macd and the criteria I ascribe to it as a way to alert me to an existing condition of price. The key concept to take away from this blog is that I try to anticipate what will happen on the higher time frame by using a faster time frame to trigger the trade setup. I do not trade a "system" I use two indicators to clue me in to price conditions. Please read the Disclaimer located in the sidebar of this site. I can be contacted via email at email@example.com
I am always open to questions, comments, or suggestions on how to improve this blog.