Sina as a Case Study in Triggers

 | Oct 24, 2013 | 6:00 PM EDT
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I like Sina (SINA) on the buy side as long as price continues to hold above the Oct. 9 swing low at $79.13. I've set up a symmetrical pullback in Sina where two standout Fibonacci price clusters come in above that recent low. 

The first zone came in at $83.08-$83.57, which included a 1.272 extension along with a couple of "symmetry" or 100% price projections of prior declines. The second zone is at the $81.05-$82.34 area. This zone also includes some symmetry projections along with a .786 retracement and a 1.618 extension of a prior swing.

So far, price is holding above zone No. 1, and it has triggered an entry on the buy side. There is also Fibonacci timing for a low that coincides with a test of this key support between Oct. 23 and 25. Let's look at the 15-minute chart trigger, for those of you who are still confused about using triggers for your entries against these Fibonacci price cluster zones!

What is a trigger anyway? For me, it is price action on a lower time frame chart that suggests it is worth placing a bet against one of the price zones. My basic trigger is what I look for after a key zone is tested and it holds. For a swing-trade entry, the aggressive trigger is on the 15-minute chart. I'm more willing to use the 15-minute trigger chart when we are looking at a nice trend trade with the 200- and 50-day simple moving averages on my side. This is the case in Sina.

Now looking at the 15-minute chart below, you can see two triggers on this chart. The first is John Carter's squeeze trigger, which fired off where I drew one of the arrows on the chart.  This was also triggered by the 8 ema crossing above the 34 ema, along with the fact that it took out a prior swing high, which is my typical trigger entry.

SINA Triggers
Dynamic Trader

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