Dow In Range, In Process of Forming Low Buy at Bottom of Range
At the present moment, Dow Jones is in a range. This was evident at the start of December with the false break reversal at the high and the trading back down to the other side of the range.
I will be giving Dow the benefit of the doubt of being a range until further notice and look for a failed break of the downside for the return back up to the top of the range.
Rangebound = Buy at the lows when false break
Sell at the highs
Avoid the middle at ALL COSTS
The middle of the range is the Deathtrap and I do not want to get caught buying or selling in the middle as that is where you are the most likely to get taken out.
The December 26th High is right under the middle of the range and is a prime target to get taken. Once the market exhausts itself to the downside and starts the buying back up, that will be the first target. The next target is the top of the range.
Another clue for this range is where each month has been opening. September, October and November has opened in the bottom of the range (notated in purple). December has opened at the top of the range. January is expected to open at the bottom of the range as well.
I have been keeping an eye on this doji candle for the past three months now as a major price magnet. I don't know how to explain my thought process on this but I have seen this countless times and is more of a gut instinct. I have a gut feeling that price is going to target this doji and bounce.
I will be giving Dow the benefit of the doubt of being a range until further notice and look for a failed break of the downside for the return back up to the top of the range.
Rangebound = Buy at the lows when false break
Sell at the highs
Avoid the middle at ALL COSTS
The middle of the range is the Deathtrap and I do not want to get caught buying or selling in the middle as that is where you are the most likely to get taken out.
The December 26th High is right under the middle of the range and is a prime target to get taken. Once the market exhausts itself to the downside and starts the buying back up, that will be the first target. The next target is the top of the range.
Another clue for this range is where each month has been opening. September, October and November has opened in the bottom of the range (notated in purple). December has opened at the top of the range. January is expected to open at the bottom of the range as well.
I have been keeping an eye on this doji candle for the past three months now as a major price magnet. I don't know how to explain my thought process on this but I have seen this countless times and is more of a gut instinct. I have a gut feeling that price is going to target this doji and bounce.
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