Based on the Fibonacci sequence, a series of continuously growing numbers where each number is equal to the sum of the two numbers before it, Fibonacci retracement levels are horizontal lines that show where support and resistance are expected to occur. A percentage is connected to each level. How much of a previous move the price has retraced is shown by the percentage. There are four Fibonacci levels for retracement: 23.6%, 38.2%, 50%, 61.8%, and 78.6%. The 50% Fibonacci ratio, 50% is one of the most commonly utilized ratios. The indication can be drawn between any two important price points, such as a high and a low, making it handy. The levels between those two spots will subsequently be created by the indicator.
This week we are going in with the Vertical option strategy on QQQ (Nasdaq ETF). The reason for choosing this option trade is that we are learning to choose a direction and how to trade that choice. QQQ has been on a crash course recently to the downside. As contrarians, we will bet the stock stops and heads up from here over the next 45 days and use a Short Put Vertical to trade that assumption. Watch this video to get the trade details. Hope you enjoy it! Kal Trading Risk Disclaimer All the information shared is provided for educational purposes only. Any trades placed upon reliance of SharperTrades, LLC are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, cryptos, commodities, options, forex and other trading securities, there is also substantial risk of loss. All trading operations involve high risks of losing your entire investment. You must therefore decide your own suitability