AAPL
Analysis is based on simplified Smart Money Trading Concepts.
There doesn't seem to be a great trade opportunity at the moment. BUT...in the coming weeks, there is likely a bullish opportunity that may give way to great returns.
I would like to see at least a 62%-70.5% pullback before pulling the trigger on buying any option calls.
I would anticipate these opportunities to present themselves near the end of February to the beginning of March.
If you are trading options, I would purchase Long Calls that expire 3-5 months from the date of your purchase. Ideally 5 months to capture most of the upside movement.
1. Define your directional bias.
-->> Directional bias defined by the Daily Change of Character near the $182.65 level. The low that created that daily change of character is now considered our Strong Low of $165.67. This strong low of $165.67 is our point of trade idea invalidation. Any break and close on the Weekly time frame below this low of $165.67, would invalidate our bias and thus this trade idea.
2. Strong Low = $165.67 / Weak High = $199.62
-->> This is our trading range. Since we have a Bullish bias, we want to buy low and sell at new highs.
3. PD zones marked up by Fibo
-->> We are in the low half of the 50% but not near a favorable price point of 62%-79% of the pull back. So no trades should be triggered IMHO.
4. Price is traveling in the Premium zone (Below 50%) and we are only looking for Longs.
Price is currently at the Equilibrium(EQ = 50% of fibo) of the Premium-Discount Zone.
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Premium - Discount Zones Explained:
In Bullish market structure/bias ---> Buy below the 50% of a fibo retracement
**Ideally between 62% to 89%**
In Bearish market structure/bias--> Sell above the 50% of a fibo retracement
**Ideally between 62% to 89%**
***Please note: the fibo retracement would be flipped in bearish market structure and the 62%-89% zones would be in the upper 50% of the fibo retracement***
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