Dow Finding Support at current low in a Bullish Trend
Updated
https://www.tradingview.com/x/T1SRzcdH/
Keep your charts clean at all times. It helps you to see the simplicity and clarity that comes embedded in these trades when they turn up. The Dow is currently in a up trend. It has made retracement to Fib 50.0 as shown on the chart. For six hours, they have been pounding this level. This trade is still setting up and currently we only have got two values, out STOP and our TARGET. We need to be given our ENTRY before we press the OK button. So keep your hands off that OK button for now until we have all our three values. Our STOP is currently @ 26423, our TARGET is @ 27115, given a Fib 50.0 retracement, our target becomes Fib 161.8, as shown on the chart. We are now waiting for a candle that closes clearly above our 45 degree counter trend line then we can BUY the next candle. You can place an alert on that counter trend line to be notifies when price closes above the trend line. Take strong note though the tradition levels for deep retracements of Fib 38.2 and Fib 23.6 have not been tested. If the current low fails to hold, then they might be looking to test either of these two support levels. If this happens, hopefully, it will happen without price having close above the counter trend line. This will stop you from getting involved with a trade that has not completed its set up, saving money and all the frustration that comes with a trade going against you. I hope this helps. Happy trading at all times.
Keep your charts clean at all times. It helps you to see the simplicity and clarity that comes embedded in these trades when they turn up. The Dow is currently in a up trend. It has made retracement to Fib 50.0 as shown on the chart. For six hours, they have been pounding this level. This trade is still setting up and currently we only have got two values, out STOP and our TARGET. We need to be given our ENTRY before we press the OK button. So keep your hands off that OK button for now until we have all our three values. Our STOP is currently @ 26423, our TARGET is @ 27115, given a Fib 50.0 retracement, our target becomes Fib 161.8, as shown on the chart. We are now waiting for a candle that closes clearly above our 45 degree counter trend line then we can BUY the next candle. You can place an alert on that counter trend line to be notifies when price closes above the trend line. Take strong note though the tradition levels for deep retracements of Fib 38.2 and Fib 23.6 have not been tested. If the current low fails to hold, then they might be looking to test either of these two support levels. If this happens, hopefully, it will happen without price having close above the counter trend line. This will stop you from getting involved with a trade that has not completed its set up, saving money and all the frustration that comes with a trade going against you. I hope this helps. Happy trading at all times.
Note
We now have our entry given @ 26540, over 8 hours worth of WAITING. We now have a candle that has closed clear of out counter trend line and we are buying the next candle. Note the higher STOPS on Indices. We have a risk of 117 pips, which is quite high. Try not to hold as many positions as there is a pending retracement after this candle during which they will try to test the back side of the counter trend line. So you may find yourself in the red 50 or 60 pips, that is normal. Stand firm on your ground and DONT fiddle with your trade. Because of the size of this trade... we are chasing +575 pips, we need two profit targets. Our first target is going to be Fib 127.2 or Fib 138.2. The reason being that any one of these two levels is a very strong level of resistance which normally forces price back to go and find support at the Fib 100 level. So we want to take profit at 26982, which is @ Fib 138.2, giving a reward of 442 pips. If this set up works this way, I will update on how to enter next after the Fib 138.2 retracement.Trade active
Hello Traders, its yours truly here passing through. Note how many times price has tested the Fib 50.0 support level on the chart and the level is still holding. We now have a Double Bottom formation that has appeared. This is an indication of what is on the horizon. If you are not on board this big ship, get on board before the sailing begins. For those on board, I am, do not fiddle with the trade. Keep your provisional STOP anywhere below Fib 38.2 and simply WAIT for this is the name of the game. WAITING.Note
We have had q very strong move to the down side, resulting in us being stopped out, which is OK. There should be nothing unusual there. This has resulted in our original structure collapsing. The beauty though is that the collapse of one set up marks the beginning of a new set up. And this is what we have. Note how even given the news that caused this huge downfall, price knew exactly where key Fibonacci levels were and they decided to make a deep retracement to the traditional lower level @ Fib 23.6, as noted above. The key note to note is that the bullish trend is still intact. So we will be looking to buy this market. Our Provisional STOP has been given and its going to be anywhere below Fib 0.00... on the chart. Now we are WAITING for price to give us a high, arising from the current low at Fib 23.6. Once we get this high, insert your 45 degree counter trend line and wait for our clear candle above the trend line and buy the next candle. Our target is at either Fib 127.2 or Fib 138.2, keeping an eye on what is going to happen at Fib 100. Thus another strong level of resistance that may force a retracement and the Big Boys know where these levels are. We also know where they are. I hope this little helps. Happy trading at all times traders. Thank you.
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