DOW Jones Long Set Up
The Dow Jones just won't stop rising and so the bias is a buy.
Opportunities to buy are short right now as ideally you want to come in on a correction structure with the closest one at the 23000 level. After that the Fib levels are some way lower so you'd need quite a decline to get in on a correction. Luckily President Trump is prone to causing world wide fear and panic so one may not be so far away from an ideal correction and buying opportunity.
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My Trading Rules - How I identify trades, define my edge and manage the commercials:
First I define my 'edge' which simply means a set of circumstances that indicate one eventuality is greater than another.
My Edge: (How I decide on if I should enter)
1) Is defined as trading in the direction of the overriding daily trend (Bullish, Bearish or Neutral)
2) In a trending marketing I look for entries at corrective price structure
3) In a neutral market I trade the upper and lower most extremes of the support and resistance levels
4) In the case of a breakout I seek an entry in the direction of the break
Next I follow 4 rules for undertaking analysis: (How I spot opportunities)
1) Analysis must clearly define a 'bias' and the parameters for invalidating 'bias'
2) Analysis must clearly provide a trade set-up with entry, take profit and stop loss
3) Analysis must debunk a trade in the opposite direction
4) Analysis must factor in sentiment and fundamental factors
So now I know my edge and how to spot opportunities the next is how to manage trades: (How I decide on the commercials of a trade)
1) Take profit should be set at a key fibonacci and/or price structure level
2) Stop loss should be no more than 3% per trade (sum of total positions)
3) Entry should feature 2 or more positions
4) Entry at market is forbidden to mitigate impulse trading (I only trade via orders)
Opportunities to buy are short right now as ideally you want to come in on a correction structure with the closest one at the 23000 level. After that the Fib levels are some way lower so you'd need quite a decline to get in on a correction. Luckily President Trump is prone to causing world wide fear and panic so one may not be so far away from an ideal correction and buying opportunity.
-
My Trading Rules - How I identify trades, define my edge and manage the commercials:
First I define my 'edge' which simply means a set of circumstances that indicate one eventuality is greater than another.
My Edge: (How I decide on if I should enter)
1) Is defined as trading in the direction of the overriding daily trend (Bullish, Bearish or Neutral)
2) In a trending marketing I look for entries at corrective price structure
3) In a neutral market I trade the upper and lower most extremes of the support and resistance levels
4) In the case of a breakout I seek an entry in the direction of the break
Next I follow 4 rules for undertaking analysis: (How I spot opportunities)
1) Analysis must clearly define a 'bias' and the parameters for invalidating 'bias'
2) Analysis must clearly provide a trade set-up with entry, take profit and stop loss
3) Analysis must debunk a trade in the opposite direction
4) Analysis must factor in sentiment and fundamental factors
So now I know my edge and how to spot opportunities the next is how to manage trades: (How I decide on the commercials of a trade)
1) Take profit should be set at a key fibonacci and/or price structure level
2) Stop loss should be no more than 3% per trade (sum of total positions)
3) Entry should feature 2 or more positions
4) Entry at market is forbidden to mitigate impulse trading (I only trade via orders)
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