TradingView
aravindran1
Oct 12, 2014 8:56 AM

Blue print for making money in a crash Short

Dow Jones Industrial Average IndexDJ

Description

This is a simple MACD analysis, to try an forecast a topping pattern before a crash, The safest and high probability trade for a short occurs when the MACD has a negative divergence highlighted in red circle and yellow divergence line. Since it has broken the uptrend support and it is coming back to test it close to the 0.236 fib retracement level. that would be the ideal place to short and capture the crash. Looking at current market conditions, we are still at an uptrend and have yet to form a topping pattern that takes about 1-2 years to form depending on the length of the Bull rally. As of now we are cautiously long however i woudnt be putting new money at these levels as we mat be in the process of forming a topping pattern.
Comments
vlad.adrian
There are so many more MACD divergences on that chart...
More