One of my favorite, but often overlooked, stock trading tools is the use of Fibonacci Extensions. Whether you are looking for an area to lock in some profits, or an area to initiate a short position, this technical chart tool can be very useful as this video shows.

Whenever a “blue sky breakout” occurs (defined as when there is no available data points to use as levels of resistance), you as a trader have two options…

1. You can use your gut instincts on where the smart areas to lock in profits or go short may be.
2. Use the technical chart tool known as Fibonacci Extensions.

The below video shows how Fibonacci Extensions are truly an amazing tool. Do they work 100% of the time? Absolutely not. News flash though, there is no such thing in the stock market that works “100% of the time!”.

If you want you learn how to use this technical trader’s tool, then click HERE for more information on my charting education course, Robotic Trading.

Robotic Trading is an instant access course, so you can literally get started learning immediately after purchase. There is no “waiting for it to come in the mail.”

ClayTrader.com is a wholly-owned subsidiary of Guidance Marketing, LLC. Guidance Marketing, LLC and its employees are not a Registered Investment Advisor, Broker Dealer or a member of any association for other research providers in any jurisdiction whatsoever and we are not qualified to give financial advice. Investing in micro-cap securities is highly speculative and carries an extremely high degree of risk.

Compensation Disclosure: Guidance Marketing, LLC has NOT been compensated for this video in any form and does not own any shares (long or short).