We will always be the first to discourage you from FOMO, especially when an asset price is at an all-time high (ATH).
That being said, it doesn't mean you can not trade an asset at an ATH.
A disciplined trader will use the resources they have and work with the charts.
While not a certainty, Fibonacci levels often provide accurate levels ahead in such a trend.
Combined with a detailed Elliott Wave count, you can get a good idea of key levels yet to be reached and even possible retracement levels.
We will always be the first to discourage you from FOMO, especially when an asset price is at an all-time high (ATH).
That being said, it doesn't mean you can not trade an asset at an ATH.
A disciplined trader will use the resources they have and work with the charts.
While not a certainty, Fibonacci levels often provide accurate levels ahead in such a trend.
Combined with a detailed Elliott Wave count, you can get a good idea of key levels yet to be reached and even possible retracement levels.
NOTE: A good rule of thumb during an ATH -
It is best not to blindly short an asset at an ATH, as you would most likely be opposing a strong uptrend.
A scalp short can be plausible, anything beyond requires confirmation and solid risk management.
Key Points of the Lesson
UTILITY
Maximize profits by letting winning trades run.
Establish reliable price targets to take profits.
Avoid losing money by prematurely shorting.
IMPLEMENTATION
Use trailing stop loss technique to maximize profits ⇒ 2 higher lows back.
Fibonacci Expansion, Negative and Extension targets ⇒ use to take profits.
Do not look for swing short trades in all-time-high breakout mode.
PRACTICAL EXAMPLE
TIPS & TRICKS
Manual trailing stop loss ⇒ preferred strategy for ATH moves.
Time frames can be adjusted ⇒ depending on trade goals (swing, day trade).
4-hour time frame suitable for most people (especially stock market) ⇒ 15 minutes time frame for day trading.
Fibonacci Extension levels can be used extremely well with Elliott Waves ⇒ example: wave 3 target at 1.618 Fib Extension.
Confluence of Fib Expansion, Negative and Extension is very strong.
When price hits such a Fibonacci level ⇒ possible day trade range can form.
TAKE HOME MESSAGE
Trailing SL = let winning trades run
Fibonacci offers targets for taking profits.
Attempting to swing trade short an ATH is not recommended.