The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again at optionalpha.com and welcome back to the daily call. Today, we are going to be talking about stock snapbacks and Fibonacci retracement. Both of these things commonly occur and we’ll talk about the differences between them or if there's any similarities and differences between them in today's quick little session. What typically happens is that stocks obviously don't move in one direction at one time all the time. There's no stock that goes vertically higher or significantly lower without having gyrations in between the stock move. Now, gyrations can happen and basically, just active trading in an efficient market can happen at any timeframe. It can happen on an intraday basis, on a one-minute, a five-minute, a 20-minute chart. It can happen on a daily, a weekly, an annualized chart, etcetera. These gyrations, people always try to find some sort of meaning that can be derived out of them. Now, I’m not saying today that there is or isn’t meaning to them. I’m just trying t