US30 (Dow Jones) 2D Chart – Bullish Reversal Buy Setup Explained
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📈 US30 (Dow Jones) 2D Chart – Bullish Reversal Buy Setup Explained
This chart illustrates a high-probability buy setup on the US30 (Dow Jones Industrial Average Index) using a combination of trendlines, Fibonacci retracement, price action, and support zones. Below is a breakdown of the tools used and how they build the case for a long (buy) trade.
🔧 Tools and Technical Elements Used
1. Fibonacci Retracement Tool
The Fibonacci retracement is drawn from the low around 28,591 to the high at 45,191.
Key levels visible:
23.6% at 41,220
38.2% at 38,811
50% at 36,886
61.8% at 34,916
Price has reversed around the 38.2% zone, which is a golden area for bullish reversals in strong trends.
2. Horizontal Demand Zone (Green Box)
A historical demand zone is highlighted in green between 36,800 and 38,800.
This zone coincides with Fibonacci confluence (between 38.2% and 50%), making it a strong support area.
Price entered and rejected this zone sharply with bullish momentum.
3. Trendlines (Yellow Diagonal Lines)
Long-term ascending trendline (bottom left to current) shows that price remains in a broader uptrend.
Price tested and bounced from this trendline, acting as dynamic support.
A corrective descending trendline was broken recently, signaling a possible bullish breakout.
4. Volume and Projection Boxes
Two bullish price projection paths are shown:
Shorter-term target: 8,470 points (approx. 23% gain)
Longer-term target: 12,800 points (approx. 34.7% gain)
Volume (5.89M) suggests strong buying interest.
5. Price Action
Strong bullish engulfing candles from the support zone signal aggressive buyer activity.
This bullish behavior after touching key Fibonacci levels supports a trend continuation scenario.
🧠 Summary: Why It’s a Buy Setup
Criteria Explanation
✅ Fibonacci Support Price reversed from the 38.2% retracement, a strong bullish support zone.
✅ Demand Zone Historical demand was respected, showing institutional interest.
✅ Trendline Bounce Price reacted to the ascending trendline – confirming uptrend.
✅ Break of Downtrend Line Downtrend break confirms potential for a bullish rally.
✅ Bullish Projections Risk-to-reward ratio is favorable with potential targets at 45,000+ and 51,000+.
🎯 Buy Entry Plan
Buy Zone: Around current price (40,000–40,500) or on minor dips.
Stop-Loss: Below 38,800 or the 50% Fib zone (~36,800).
Target 1: 45,200 (Previous high)
Target 2: 49,500–51,000 (Projected bullish extension)
📈 US30 (Dow Jones) 2D Chart – Bullish Reversal Buy Setup Explained
This chart illustrates a high-probability buy setup on the US30 (Dow Jones Industrial Average Index) using a combination of trendlines, Fibonacci retracement, price action, and support zones. Below is a breakdown of the tools used and how they build the case for a long (buy) trade.
🔧 Tools and Technical Elements Used
1. Fibonacci Retracement Tool
The Fibonacci retracement is drawn from the low around 28,591 to the high at 45,191.
Key levels visible:
23.6% at 41,220
38.2% at 38,811
50% at 36,886
61.8% at 34,916
Price has reversed around the 38.2% zone, which is a golden area for bullish reversals in strong trends.
2. Horizontal Demand Zone (Green Box)
A historical demand zone is highlighted in green between 36,800 and 38,800.
This zone coincides with Fibonacci confluence (between 38.2% and 50%), making it a strong support area.
Price entered and rejected this zone sharply with bullish momentum.
3. Trendlines (Yellow Diagonal Lines)
Long-term ascending trendline (bottom left to current) shows that price remains in a broader uptrend.
Price tested and bounced from this trendline, acting as dynamic support.
A corrective descending trendline was broken recently, signaling a possible bullish breakout.
4. Volume and Projection Boxes
Two bullish price projection paths are shown:
Shorter-term target: 8,470 points (approx. 23% gain)
Longer-term target: 12,800 points (approx. 34.7% gain)
Volume (5.89M) suggests strong buying interest.
5. Price Action
Strong bullish engulfing candles from the support zone signal aggressive buyer activity.
This bullish behavior after touching key Fibonacci levels supports a trend continuation scenario.
🧠 Summary: Why It’s a Buy Setup
Criteria Explanation
✅ Fibonacci Support Price reversed from the 38.2% retracement, a strong bullish support zone.
✅ Demand Zone Historical demand was respected, showing institutional interest.
✅ Trendline Bounce Price reacted to the ascending trendline – confirming uptrend.
✅ Break of Downtrend Line Downtrend break confirms potential for a bullish rally.
✅ Bullish Projections Risk-to-reward ratio is favorable with potential targets at 45,000+ and 51,000+.
🎯 Buy Entry Plan
Buy Zone: Around current price (40,000–40,500) or on minor dips.
Stop-Loss: Below 38,800 or the 50% Fib zone (~36,800).
Target 1: 45,200 (Previous high)
Target 2: 49,500–51,000 (Projected bullish extension)
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
For Training visit.
Website wave-trader.com
Website techtradingacademy.com
Slack: wavetraders.slack.com
Telegram: t.me/Wavetraders
X: twitter.com/Wave__Trader
FB: facebook.com/WTimran
Website wave-trader.com
Website techtradingacademy.com
Slack: wavetraders.slack.com
Telegram: t.me/Wavetraders
X: twitter.com/Wave__Trader
FB: facebook.com/WTimran
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.