Health Care Reit Inc trades with the decreasing volatility last days. The volatility may increase soon and the support (last minimum) at 61.44 will be punched. Let's put pending sell order 1 point lower the support level. We can use 161.8, 261.8 and 423.6 Fibonacco levels as Take profits and the resistance (last maximum) level as Stop loss.
As we reach each Fibonacci level close the 1/3 of the order amount and move the Stop loss at the previous Fibo level. For example as we reach 161.8 Fibo level close 1/3 of the order amount and move Stop loss to 100 Fibo level (i.e. entry price level).
SELL STOP order
My entry price: 61.43
My take profit 1: 60.85
My take profit 2: 59.90
My take profit 3: 58.37
My stop loss: 62.40
I could be wrong, but I believe you've drawn your fibonacci retracement incorrectly.
ReplyDeleteFind your suspected low
Look for where the stock last traded at that price
Find the highest price between your suspected low and the last time/place the stock traded at that suspected low price.
Draw from the suspected low to the highest price (between the suspected low and the last time it trade at that low price)
Always go right to left, more recent to less recent. Same with supply/deman trendlines.
youtube: demark on trendlines