Trading stock options using the .786 Fibonacci Retracement

Hey everyone,

As you know, I’m a big fan of trading the S&P500 ETF Trust (SPY). I use different tools to help me make smart decisions before I hit that send button. One of my favorite tools is the ThinkOrSwim platform from TD Ameritrade.

Recently, I stumbled upon a strategy that I’ve been meaning to try for a while. It’s called the Fibonacci Retracements. The idea is to use the 78.6% line as your entry point. Of course, there are other things to consider before you make a decision. You need to look at the market structure, the major key levels, and all that jazz. But the point is, you should have done your homework by the time you hit that send button.

I started using this strategy today, and I’ve had some pretty good results. I’ll share the steps below.  

This strategy will require you have the discipline to wait for the price to come to you and not force it. If you miss the fill, do not worry. There are other opportunities. Do not chase.

If you have any questions, feel free to ask in the comments section or send me an email if you receive this through our newsletter. Please note that this guide is provided for educational purposes only.

You only lose if you don't have a stop loss. Cheers Traders.
— Rocketman

I am not a professional investment adviser and my opinions are based on my own technical analysis. Please consult an investment professional before making investment decisions.

Do your due diligence if or when placing a trade. All ideas stated here are my own and do not represent trading or investment advice.