Tom C. was a frequent contributor to this blog in the past, and he had a few thoughts to share with everyone:
My posts dealing with longer-term trades were popular in the past, and I wanted to tell Trader-X readers who are interested in those type of trades that the market action from 2008 lends itself to the possibility of some great setups in 2009.
With many stocks closing near the low, I will be watching for them to rally off those levels. I plot my Fibonacci lines over the previous year's high to low*, and look for price to break through the retracement zone. The idea setup is price breaks through that level and pulls back to test it as support before rallying to the previous year's high (and hopefully the Fibonacci extension).
Of course, this is the bullish scenario - which I am hoping is the case for the health of the overall market. In the event that the bear market continues, there will still be setups - just look for price to fail at the retracement zone and turn back down to the previous year's low (and hopefully the Fibonacci extension).
You can read more about my longer-term trades here, and do a search on Tom C. for other posts.
Good luck in 2009!
*To give credit where it is due, I learned this method from Kernan at TRADEthemove.com
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