DOW - DOUBLE INSIDE BAR AND POSSIBLE REVERSL POINT
We have significant rally on DJIA which started just before US presidential election and as result index has advanced more than 2400 points since.
Current structure indicates we have a signs of trend exhaustion and we might reach reversal point and begining of retracement.
On daily time frame we have double inside bar formation which support my concept and when you drop down time frame we can identify symetrical triangle pattern.
If you want to have a confirmation of direction you can use traditional entry and wait until price breaks mother candle/bar base with SL above second end or with more agressive approach at 55% lenght of candle/bar.
However as triangle pattern has been developed we can use more advanced entry strategy with much better RRR.
I have marked multiple target points as 3 major fib retracements levels plus triangle pattern target.
Watch price action on every tp level if reached for any signs of reversal.
Traditional entry 19743 and SL as explained above.
Advanced entry - market order and SL above current swing high 19925.
TP1- 19679
TP2- 19540
TP3- 19190
TP4- 18950
If price breaks top magneta line setup will be invalidated and you can look for buy setups based on inside bars.
Current structure indicates we have a signs of trend exhaustion and we might reach reversal point and begining of retracement.
On daily time frame we have double inside bar formation which support my concept and when you drop down time frame we can identify symetrical triangle pattern.
If you want to have a confirmation of direction you can use traditional entry and wait until price breaks mother candle/bar base with SL above second end or with more agressive approach at 55% lenght of candle/bar.
However as triangle pattern has been developed we can use more advanced entry strategy with much better RRR.
I have marked multiple target points as 3 major fib retracements levels plus triangle pattern target.
Watch price action on every tp level if reached for any signs of reversal.
Traditional entry 19743 and SL as explained above.
Advanced entry - market order and SL above current swing high 19925.
TP1- 19679
TP2- 19540
TP3- 19190
TP4- 18950
If price breaks top magneta line setup will be invalidated and you can look for buy setups based on inside bars.