DOW JONES: Long setup with LuBot indicator
As can be seen on the graph, a good entry setup has been formed on the Dow Jones index through the use of the LuBot indicator.
We have several points in favor of a Long trade including:
1. The last signal shown is Long, in this case we will only follow the entry setups for purchases;
2. TrendCloud is positive and supportive
3. Price returns to TrendCloud and closes above ema21
4. A new Swing HL (HigherLow) is formed so we have a higher low than the previous one
5. ema100 higher than ema200, this indicates a bullish configuration
6. The color of the TrendCandles candles are green thus favoring the Long setup
By Cons we have only the trend channel that intersects with a resistance level . This could slow down or limit your ascent. So I recommend caution.
The Trigger would occur at the break of the previous high where a Buy stop order can be placed.
I enter the Stop Loss below the last 2 swing lows and the Take Profit on the next resistance level .
The risk-return of this short-term operation is 1:1.3
The position will be managed according to the next movements. If the market shows no strength to reach the take profit you could close the trade manually.
We have several points in favor of a Long trade including:
1. The last signal shown is Long, in this case we will only follow the entry setups for purchases;
2. TrendCloud is positive and supportive
3. Price returns to TrendCloud and closes above ema21
4. A new Swing HL (HigherLow) is formed so we have a higher low than the previous one
5. ema100 higher than ema200, this indicates a bullish configuration
6. The color of the TrendCandles candles are green thus favoring the Long setup
By Cons we have only the trend channel that intersects with a resistance level . This could slow down or limit your ascent. So I recommend caution.
The Trigger would occur at the break of the previous high where a Buy stop order can be placed.
I enter the Stop Loss below the last 2 swing lows and the Take Profit on the next resistance level .
The risk-return of this short-term operation is 1:1.3
The position will be managed according to the next movements. If the market shows no strength to reach the take profit you could close the trade manually.
LuTrader Garage : linktr.ee/LuTraderGarage
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