Hi friends! Welcome to this analysis on the badly beaten, Dow Jones Industrial Average. The instrument that we will be using to review the Dow, is the DIA ETF. Looking at the four hour chart, you can see that the Dow has been trading in a long bearish uptrend formation, known as an ascending broadening wedge (in blue.) Ascending broadening wedges are patterns that ...
The orange lines are all the same, they show the angle of decent in our recent crashes.
The yellow lines are all the same, they show the angle of descent of freefalls during those crashes.
Will the market correction (aka "crash") drop us back to the previous set of trend lines, around the $200 - $220 range?
Would you say I'm crazy if I told you I wouldn't be ...
Positive closing of the day will increase the divergence between the RSI index and the price. At the moment, the index DJI adds to the Premarket. Closing of the day in with growth will allow to talk about exhaustion of the downward impulse and can precede a substantial reversal in the direction to the growth.
Besides this there are a few things that allow us to ...
LOOKING FOR A PULLBACK TO GET LONG FOR A TRADE. WILL BE FLEXIBLE WITH LEVELS ABOVE AND BELOW
LEVELS ARE AREAS TO POTENTIALLY ADD OR TAKE PROFIT DEPENDING ON PRICE ACTION
NOT LOOKING TO GO HUGE ON A MONDAY DON'T BE AN IDIOT
we can play this channel opening short positions (going with the main trend) and closing when the price
touches the bottom line and also by opening long positions being a bit more riskier. the channel will be invalidated as soon as the price breaks one of the two lines by a close candle not the shadows.
let's see how markets fan out over next 6-9 months and whether this is indeed the beginning of larger consolidation and correction...
keeping an eye on weekly chart time frame and note both bearish divergences in dotted lines.