DJI(4H): POTENTIAL TRAP
Updated
In this chart I dig deeper into price action and trends on the DJI on the 4H time frame, exposing a potential trap - mainly for new traders and some seasoned traders. What you don't see is most important. Lots of indicators in here - requires study. I use them only to expose what's happening.
In other charts/videos I've shown that the DJI is weakening based on three successive weaknesses in the ATR price action. Trends are generally more important than price-points.
Price has collapsed a bit but is now in what I think is a critical zone. There are no 'predictions' here; only probabilistic estimates based on my experience.
The zone of congestion is a red rag to the bulls and let's be real; this is still a bull market. I don't expect the bulls to just roll over easily. Only extreme force would decimate them and nothing like that is seen on the horizon at this point in time.
The obvious broadening wedge is a sign of panic due to the distance from the ATR (4H) line. In other words this is not a burn down of price, else the ATR line would have followed closer to price.
The alternate ABCD is only indicative. It is contrary to conventional 'teachings', which says there are only 6 types of ABCD. The reality is that ABCD's do what they want and form various shapes, the main element is AB=CD.
Weekend Wall Street (DJI) not available on Tradingview, already indicates that the bulls are getting ready to charge with price action developing north by 100 points. This is just the 'pawing of the ground' perhaps, so price movement on Sunday night 300 points south wouldn't mean much. They can kick up a lot of dust before launching north.
I think the important thing here is to avoid 'obsession' with the 'instrumentation' i.e. indicators. Fly the plane, which means don't get fried in this market. The human eye and brain are better than all indicators, when used properly of course. 🙄😁
Indicators only give us an idea based on historical data. No indicator(s) 'predicts' the future for you.
What we can't see is future price action, which is what will better determine what's likely to happen next. Therefore do not rely on anything said in this educational post for decision-making on entry of a live position.
Disclaimers: This is not advice or encouragement to trade securities on live accounts. Chart positions shown are not suggestions. No predictions and no guarantees supplied or implied. Heavy losses can be expected if trading live accounts. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, kindly sue yourself.
In other charts/videos I've shown that the DJI is weakening based on three successive weaknesses in the ATR price action. Trends are generally more important than price-points.
Price has collapsed a bit but is now in what I think is a critical zone. There are no 'predictions' here; only probabilistic estimates based on my experience.
The zone of congestion is a red rag to the bulls and let's be real; this is still a bull market. I don't expect the bulls to just roll over easily. Only extreme force would decimate them and nothing like that is seen on the horizon at this point in time.
The obvious broadening wedge is a sign of panic due to the distance from the ATR (4H) line. In other words this is not a burn down of price, else the ATR line would have followed closer to price.
The alternate ABCD is only indicative. It is contrary to conventional 'teachings', which says there are only 6 types of ABCD. The reality is that ABCD's do what they want and form various shapes, the main element is AB=CD.
Weekend Wall Street (DJI) not available on Tradingview, already indicates that the bulls are getting ready to charge with price action developing north by 100 points. This is just the 'pawing of the ground' perhaps, so price movement on Sunday night 300 points south wouldn't mean much. They can kick up a lot of dust before launching north.
I think the important thing here is to avoid 'obsession' with the 'instrumentation' i.e. indicators. Fly the plane, which means don't get fried in this market. The human eye and brain are better than all indicators, when used properly of course. 🙄😁
Indicators only give us an idea based on historical data. No indicator(s) 'predicts' the future for you.
What we can't see is future price action, which is what will better determine what's likely to happen next. Therefore do not rely on anything said in this educational post for decision-making on entry of a live position.
Disclaimers: This is not advice or encouragement to trade securities on live accounts. Chart positions shown are not suggestions. No predictions and no guarantees supplied or implied. Heavy losses can be expected if trading live accounts. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, kindly sue yourself.
Note
As always I dig very deep. See 15 min situation below. Note
Always look higher! 
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