Posted by Tom C.
At the beginning of the year, I made a post about watching for longer-term setups.
"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)."
Many stocks are moving up as anticipated. I already had several good trades, and I expect more setups to materialize in the coming weeks.
I wanted to post a couple of charts of trades I made where price moved off of the 2008 lows. Both of these were great trades, with offsetting bars (or piercing line candle formations) and a clean move up to the halfway point between the low and the 50% retracement of the previous year's range. AEIS was a 20%+ move, and ALB was a 25%+ move.
My entry was a break of the bar indicated by the yellow arrow. I closed both positions at the end of the day yesterday.
*To give credit where it is due, I learned this method from Kernan at TRADEthemove.com
Trading 27-April-2016 (+ $66)
22 hours ago