Feb 4: EEM has triggered a fibonacci extensions buy signal. Ultimate oscillator is supportive since the price drop on January 31 had a divergence with UO being up. Be aware that risk of global events sparking further market turmoil is present.
One way to trade this is to buy when price has gone above the 23.6% fibonacci level. We use the 25% level as a buy trigger. Put stops just below point 3 with OCO orders to sell half at the 50% level and the rest just below the 100% level. When the 50% level is reached, raise remaining stops to your buy level to lock in gains. This type of trading is automatic if entered correctly.
In this instance we chose the 1, 2, 3 points due to the proportionality of the two down legs: July-Aug 2019, and Jan-Feb 2020.
February 25 update: Price went below point 3 on the chart, which nullifies this setup. The supply disruptions from Asia are weighing heavily on the stock market. It looks like a good time to stand aside from EEP and SPY until clarity returns.