YM Dow Jones In State 4 Pullback to Mean (Bullish Position)
The market only moves from narrow to wide states and repeats. Currently, the market is in state 4 out of the 5 states.
State 1: Narrow state before the move higher ( Narrow )
State 2: The trending move higher ( Trending )
State 3: The expanded move away from the mean ( Wide )
State 4: The reversion back down to the mean ( Trending )
State 5: The narrow state again prepping for the next move higher ( Narrow )
The past 6 times the market has been in its pullback state 4 phase, the hourly 21ema has been at a 34-53 degree angle declining
The hourly chart is in positive position due to it being above the 200sma and trending bullish
State 1: Narrow state before the move higher ( Narrow )
State 2: The trending move higher ( Trending )
State 3: The expanded move away from the mean ( Wide )
State 4: The reversion back down to the mean ( Trending )
State 5: The narrow state again prepping for the next move higher ( Narrow )
The past 6 times the market has been in its pullback state 4 phase, the hourly 21ema has been at a 34-53 degree angle declining
The hourly chart is in positive position due to it being above the 200sma and trending bullish
Comment:
The 5 minute 200sma is one and the same as the hourly 21ema. They are both declining meaning short term bearishness. It is looking for support for another bounce higher.
Comment:
Will it reject at the 200sma or will it pop above it first before falling again?
I don't know where the low will be at and I quite frankly don't care. I will trade in the direction of the 5 minute 21ema day by day.
I will be looking for possible shorts in the short term
I don't know where the low will be at and I quite frankly don't care. I will trade in the direction of the 5 minute 21ema day by day.
I will be looking for possible shorts in the short term
