breakoutfakeout

Dow Futures now short. MACDH divergence

Short
FOREXCOM:US30   Dow Jones Industrial Average Index
Here we are with another go at a dow short after the failed attempt last night (but with some nice follow through longs today).

Now we can see a 1hr MACDH and RSI divergence in overbought territory. We can also see an inverted hammer candle showing potential reversal. There should be some downside potential here. These types of divergences are my A* trades and often give good profit due to the extreme divergence on the MACD histogram. Stop is at 24220. If I get stopped out again that would indicate a lot of buying power and I would expect a run up again, so another opportunity to simply reverse and go long if this short fails.
Trade closed manually:
Manaaged to squeeze out a couple of hundred points on this short, waiting on the sidelines to see what happens next
Trade closed: target reached

About me: I'm a retail day trader (trading since 1993). Most ideas here are for short time frames and become profitable quickly. I take profits fast as things change fast. 1-2-1 mentoring sessions available.




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