Hey traders ! As promised 2/4 FOR THIS WEEK , here is an interesting market break down to wrap your heads around. For those of you who don't know
US30USD
otherwise known as the DOW JONES INDUSTRIAL AVERAGE, Is a valuation that consist of 30 large U.S companies that are always changing depending on their prominence within the economy. So in other words anything that happens on this index gives us tell tale clues as to how the economy is preforming. This is why it's so important to analyze some of these index first prior to looking at other stocks or pairs.
So lets get straight to what everyone is here for:
Per usual,
Before entering a trade three types of analysis should be performed.
Fundamental Analysis = The study of financial statements and economic news. (Overall Trend)
Technical Analysis = The study of chart history. (Entry & Exit Strategies)
Sentimental Analysis = The study of the markets current psychology and traders psychology.(Instinct)
After performing the three analysis below are my results:
US30USD
Fundamental Analysis = LONG-TERM (BUYING)
Technical Analysis = SHORT-TERM (SELLING)
Sentimental Analysis = USD confidence on a Rise causing stocks to slide.
To better explain:
This means that right now momentum is headed DOWNWARDS technically and the overall trend is up fundamentally.
So since we know the overall trend is upwards but we are currently headed downwards. You got two options here either take a short down on a possible counter trend / trend reversal with little to no risk with a small stop loss on on the ATH highs marked. A high probability trade that can potentially lead to a large reward if momentum picks up & this scalp turns into a full on swing trade down or you can patiently wait for prices to pull back into longer term swing levels and make small LONG purchases spread out between levels as price comes down to create a higher low before it breaks back up to ATH. Using our Fibonacci Retracement tool. For those who'd not know by now, it is A tool that is used to find important entry and exit levels in a trending market. Which is traditionally applied to the low & high of the most recent trend trend.
Here were my results:
As you can see in the chart above we have already retraced below the optimal 23.6 % level at $32593. Showing the first signs of a down turn or buyer exhaustion from our previous uptrend.
My current trade:
Short @ 32726.5
SL @ 32816
TP ZONE 1 @ 32150
TP ZONE 2 @ 31748
THEN PLANNING LONGS ON THE WAY DOWN TO 31,555 ZONE IF analysis is still valid.
MY SUGGESTION:
Place LONG orders totaling anywhere from 1-5% of your total trading capital on each retracement level below if your going for a long term holding trade:
BREAK WITH A CLOSE ABOVE 32816 LEVEL WILL CREATE BULLISH CONTINUATION UPWARD TO TEST 33,230 ATH.Which should be zones of LONG take profits.
Swing TRADE Entries:
23.6% = $32593(BUY)
38.2% = $32201(BUY)
50.0% = $31885(Great trade opportunity) (BUY)
61.8% = $31569 (What I consider the PERFECT IDEAL TRADE) (BUY)
78.6% = $31119 (ABSOLUTE BARGAIN!!) (BUY)
BREAK BELOW 32366 CAN POSSIBLY CREATE STRONG PANIC MOMENTUM DOWNWARDS TO THE FOLLOWING LEVELS BELOW BEFORE SHARPLY PULLING BACK UPWARDS WITH A BOUNCE ON THE 78.6 FIB. TAKE THESE TRADES WITH CAUTION FOR QUICK UPWARD SPIKES.
Scalp with POSSIBLE SWING TRADE DOWN Entries:
23.6% = $32,522 (SHORT)
38.2% = $32575 (SHORT)
50.0% = $32618 (Great trade opportunity) (SHORT)
61.8% = $32661 (What I consider the PERFECT IDEAL SHORT TERM TRADE) (SHORT)
78.6% = $32722(ABSOLUTE BARGAIN SCALP!!) (SHORT)
(SHORTS)TAKE PROFIT ZONE 1 @ 32150
(SHORTS)TAKE PROFIT ZONE 2 @ 31748
PRO Trader TIP: Tighter stop loss & strict management should be applied on scalps. Take what it gives you.
Take profit zone 2: $31748 . Remember if you follow this you will get ideal high probability forex trade set ups on other US Major pairs or stocks.
If you enjoy these quick signals/tips make sure to FOLLOW ME & show support by leaving a LIKE!!
US30USD
otherwise known as the DOW JONES INDUSTRIAL AVERAGE, Is a valuation that consist of 30 large U.S companies that are always changing depending on their prominence within the economy. So in other words anything that happens on this index gives us tell tale clues as to how the economy is preforming. This is why it's so important to analyze some of these index first prior to looking at other stocks or pairs. So lets get straight to what everyone is here for:
Per usual,
Before entering a trade three types of analysis should be performed.
Fundamental Analysis = The study of financial statements and economic news. (Overall Trend)
Technical Analysis = The study of chart history. (Entry & Exit Strategies)
Sentimental Analysis = The study of the markets current psychology and traders psychology.(Instinct)
After performing the three analysis below are my results:
US30USD
Fundamental Analysis = LONG-TERM (BUYING)
Technical Analysis = SHORT-TERM (SELLING)
Sentimental Analysis = USD confidence on a Rise causing stocks to slide.
To better explain:
This means that right now momentum is headed DOWNWARDS technically and the overall trend is up fundamentally.
So since we know the overall trend is upwards but we are currently headed downwards. You got two options here either take a short down on a possible counter trend / trend reversal with little to no risk with a small stop loss on on the ATH highs marked. A high probability trade that can potentially lead to a large reward if momentum picks up & this scalp turns into a full on swing trade down or you can patiently wait for prices to pull back into longer term swing levels and make small LONG purchases spread out between levels as price comes down to create a higher low before it breaks back up to ATH. Using our Fibonacci Retracement tool. For those who'd not know by now, it is A tool that is used to find important entry and exit levels in a trending market. Which is traditionally applied to the low & high of the most recent trend trend.
Here were my results:
As you can see in the chart above we have already retraced below the optimal 23.6 % level at $32593. Showing the first signs of a down turn or buyer exhaustion from our previous uptrend.
My current trade:
Short @ 32726.5
SL @ 32816
TP ZONE 1 @ 32150
TP ZONE 2 @ 31748
THEN PLANNING LONGS ON THE WAY DOWN TO 31,555 ZONE IF analysis is still valid.
MY SUGGESTION:
Place LONG orders totaling anywhere from 1-5% of your total trading capital on each retracement level below if your going for a long term holding trade:
BREAK WITH A CLOSE ABOVE 32816 LEVEL WILL CREATE BULLISH CONTINUATION UPWARD TO TEST 33,230 ATH.Which should be zones of LONG take profits.
Swing TRADE Entries:
23.6% = $32593(BUY)
38.2% = $32201(BUY)
50.0% = $31885(Great trade opportunity) (BUY)
61.8% = $31569 (What I consider the PERFECT IDEAL TRADE) (BUY)
78.6% = $31119 (ABSOLUTE BARGAIN!!) (BUY)
BREAK BELOW 32366 CAN POSSIBLY CREATE STRONG PANIC MOMENTUM DOWNWARDS TO THE FOLLOWING LEVELS BELOW BEFORE SHARPLY PULLING BACK UPWARDS WITH A BOUNCE ON THE 78.6 FIB. TAKE THESE TRADES WITH CAUTION FOR QUICK UPWARD SPIKES.
Scalp with POSSIBLE SWING TRADE DOWN Entries:
23.6% = $32,522 (SHORT)
38.2% = $32575 (SHORT)
50.0% = $32618 (Great trade opportunity) (SHORT)
61.8% = $32661 (What I consider the PERFECT IDEAL SHORT TERM TRADE) (SHORT)
78.6% = $32722(ABSOLUTE BARGAIN SCALP!!) (SHORT)
(SHORTS)TAKE PROFIT ZONE 1 @ 32150
(SHORTS)TAKE PROFIT ZONE 2 @ 31748
PRO Trader TIP: Tighter stop loss & strict management should be applied on scalps. Take what it gives you.
Take profit zone 2: $31748 . Remember if you follow this you will get ideal high probability forex trade set ups on other US Major pairs or stocks.
If you enjoy these quick signals/tips make sure to FOLLOW ME & show support by leaving a LIKE!!
Comment:
4 short scalp trades that we took together should have been closed by now in profits of atleast 4-6% gain.
Trade closed: target reached:
Short PROFIT ZONE 1 hit
Trade active:
While only 1 out of 4 of the entries for LONG swing trades I gave should have triggered during the pullback, these trades should still be running with a stop loss adjustment up to at least 5% into profits to secure gains. Trades should be well above 8-10% gain depending when your trades were entered. So allow the other 3%-5% run risk free.
Comment:
Thank You to everyone who messaged me about these perfect trades. Glad everyone who took them made money. Make sure you guys follow me & drop a like on the analysis don't just view it and message me. Show some love.
Trade active:
Adjust stop loss for Swing LONG trades to $32,985. If stop loss hits congrats on the big gains to everyone who followed my trade entries, if it doesn't hit our SL then keep allowing it to ride up while tightening your stop losses.
Trade active:
New update on these LONG trades will be up this weekend :)