Dow Made a Parabolic Move: Did You See the Signs?
The Dow made an unsustainable Parabolic Arc that is a giant U-shaped pattern on Friday, September 27. Did you see the signs? I missed some of them, which lead to a much closer look at what price action moves lead up to a highly volatile ascent and steep drop that's also known as a "Pump and Dump".
The Parabolic move followed typical behaviors that can be seen through price action without needing any indicators. It happened in phases over 3-days, from September 25 - 27:
1. Day 1: A Peak High formed.
2. Day 1 - 2: Valley Low followed.
3. Day 2 - 3: Consolidation between the Peak High and Valley Low. Price action made stair-step moves that created a S&R Zone. Traders also refer to these moves as making multiple bases. An average number of bases is 3 - 4 during a parabolic move. The long consolidation can confuse many traders, including myself, because of no breakout from the Zone happened, especially to the downside. There was strong anticipation for a drop.
4. Day 3: A Triple Inside Day showed up to represent the tight "coiling" action from the consolidation to eventually spring out in an EXPLOSIVE move. The Triple Inside Day pattern that was part of the consolidation was a big giveaway of what's to come.
5. Day 3: A pullback from the consolidation, but was more like a fakeout to trap traders with the Trendbar Reversal, that often leads to no follow through by the bears to really drop. The second, opposing bar within the pattern is a setup for a reversal to the upside. Many traders get fooled by this pattern and drop out at this point, right before the long rally starts.
6. Day 3: Ascending Channel (also called a "Parabolic Channel") formed that is typical after a pullback to the downside before the greater ascent.
7. Day 3: Steep Vertical Ascent with a bullish bar that is 240 tics tall - an Exhaustion Phase.
8. Day 3: Reversal to the downside (that is comparable to or exceeds in length to the steep ascent) from the formation of an Evening Star. The Parabolic move ended with a steep, vertical descent.
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*Citation of Resources:
- Jet Toyco
- FX Open
- Pips 2 Profit
- Top 1 Markets
US30 trade ideas
uptrend breakout good day traders, our today's analysis shows US30 and it's potential of going up for sometime. As you can see on the analysis we have an uptrend confirmed and market broke our Near term level and retested it meaning when the Market opens we might experience a buy, Use H1 for candlestick confirmation and if it gives a bullish candlestick then we will go long
Wave AnalysisThe chart shows a completed 5-wave impulse move upward (labeled 1, 2, 3, 4, 5) from the bottom in late 2022 to the current price level.
Within this larger 5-wave structure, there are smaller wave counts, particularly visible in wave 3, which is often the longest and strongest wave in an impulse move.
The analysis suggests we may be at or near the top of wave 5, which could imply a potential reversal or correction might be due soon according to Elliott Wave theory.
A simple RSI Point Of ViewAnalyzing RSI Divergence in US30: Is a Bear Market or Crash on the Horizon?
The Dow Jones Industrial Average (US30) is a key indicator for global markets. Recently, a warning sign has emerged with a divergence in the Relative Strength Index (RSI) observed from July 16, 2024, to September 27, 2024. This divergence, along with high trading volume, raises concerns about a potential market shift. Analysts are comparing this situation to past financial crises, leading to questions about a possible bear market or crash.
Understanding RSI Divergence in US30
The Relative Strength Index (RSI) measures price momentum. A bearish divergence occurs when prices make a new high but the RSI does not, indicating weakening momentum. Between July and September 2024, US30 showed this divergence: prices reached a higher high, but the RSI formed a lower high, suggesting a loss of buying strength and potential price declines. Additionally, the daily chart shows a lower high in US30 price and a higher low in the RSI, reinforcing the notion of weakening upward momentum.
Is a Bear Market or Another "Black Thursday" Looming?
The current divergence in US30, along with historical comparisons, signals warning signs. However, it remains uncertain whether this will lead to a bear market (a sustained decline of 20% or more) or a major market crash. Several factors could influence the outcome:
- Macroeconomic Conditions: High inflation, rising interest rates, and geopolitical tensions may exacerbate the divergence.
- Investor Sentiment: Panic among investors could lead to increased selling and sharper declines.
- External Shocks: Global events like financial instability or political turmoil could further destabilize the market.
Conclusion and Daily Chart Analysis
The RSI divergence in US30 from July to September 2024 is a significant development that warrants attention. The daily chart reveals weakening momentum, with a lower high in price and a higher low in the RSI, indicating a higher risk of market correction or downturn. While it is uncertain whether this will lead to a bear market or crash, traders and investors should stay alert and consider adjusting their portfolios.
This is not financial advice. Always conduct your own research and consult with a financial advisor before making investment decisions.
US30 View!!* The Dow Jones Industrial Average ended at 42,313.00 on Friday, compared with 42,063.36 a week ago. The Nasdaq Composite closed at 18,119.59 versus 17,948.32 a week prior, and the S&P 500 finished at 5,738.17 compared with 5,702.55 a week earlier. Basic materials, the home to industries such as aluminum, building materials, and copper, topped the US sector charts.
* In Beijing on Thursday, the nation's Politburo vowed the "necessary fiscal spending" required to reach its annual 5% gross domestic product growth target and to support property markets after recent monetary easing moves by the People's Bank of China.
DOWJONES / Bearish Correction, Pivot 42290Technical Analysis: DJI: Dow Jones Slides 300 Points to Retreat from Record. S&P 500 Joins Pullback.
Technical Outlook:
The price should break 42290 to be bullish till 42800,
stability under 42290 and 42210 will be a bearish trend toward 41960 and 41775
Key Levels:
Pivot Point: 42210 - 42290
Resistance Levels: 42450, 42700, 43040
Support Levels: 41960, 41770, 41565
Trend Outlook:
Bearish while under 42290
Bullish by breaking 42290
Us30 updateI never doubt my analysis even a single day I know the power behind my work,n I also know that alot of people's in this site don't believe cz they love to much explanation behind every analysis or thoughts,in my analysis there is no to much explanation but there is success behind my analysis, is very rare for me to follow the wrong trend,the reason is bcz when I analyze I start from bigger time frame to lower once n real trend I find it in bigger time frames,soo all temporary moves that is happening in smaller time frame like M30,H1 n,H4 doesn't change the trend but it always not match daily n weekly soo,all pull backs that is happening in smaller time frames I use them to generate liquidity into position cz I already knows we're the market is trending in bigger time frames,don't goo against the trend,until you see a real change of directions
,don't fall for short moves n allows it to draw weird graphs 📊 of overthinking trying to goo against trend 📖
Weekly Forex Outlook Sun.Sept.29.2024 - Fri.Ocr.4.2024Like and Comments would be appreciated :D Not Financial Advice, Just my outlook/opinion
(DJI) Dow Jones Index Shooting Star Topping TailDow Jones Index has a shooting star topping tail and there is high probabilities this is the top for DJI. It's time for markets to start pricing this upcoming depression. The only thing that would cancel out this topping tail is a close above it.
Welcome to the great depression 20-30 year bear market is coming
DOW JONES may be entering a wide 4 month consolidation phaseDow Jones / US30 reached the top of the historic Channel Up that started 2 years ago on October 3rd.
Technically that calls for a strong short. Last time that happened in April 1st, the index turned sideways on a wide consolidation.
The other 2 Higher High rejections caused Channel Down corrections.
Technically the time to rebound again will be closer to the 1week MA50 but that can be in December.
Until then, buy low and sell high within 42250 and 43350.
Follow us, like the idea and leave a comment below!!
Dow Jones Industrial Average Index War CorrectionThe Dow Jones will not crash as hard as the NDX, I don't know why because I don't know the dynamics driving this index but the correction will be smaller compared to what is coming to the Nasdaq 100 Index.
➖ There is a rising wedge pattern and this pattern is bearish.
➖ There is a super strong bearish divergence with the RSI, it started in December 2023.
➖ There is also a very strong bearish divergence with the MACD, both short-term and long-term.
We will say it is because of the war. "The market is going down because of the war."
But the market moves in cycles and it goes down after going up and it has been going up for long, so time to reverse.
P.S. It will recover after the crash.
Namaste.
US30 POTENTIAL SELLTrade Idea: Sell on US30 30MIN CHART
Trade Setup:
- Instrument: US30 (Dow Jones Industrial Average)
- Trade Type: Sell
- Entry Point: Sell when price crosses the 42320 level
- Rationale: Anticipating a retracement after a bullish overnight movement. The bullish imbalances below support the idea of a temporary pullback.
Take Profit Levels:
1. TP1: 42294
2. TP2: 42264
3. EXTENDED TP3: 42234
Stop Loss: 65 pips above entry point
Analysis:
- Market Context: Recent bullish movement suggests a potential for profit-taking or a short-term reversal.
- Technical Levels: Monitor key support and resistance levels for additional confirmation.
- Risk Management: Ensure position sizing is appropriate based on your risk tolerance.
Execution Plan:
- Wait for a confirmed break below the 42320 level before executing the sell order.
- Adjust stop loss as needed based on market movement and volatility.
Monitoring:
- Keep an eye on price action around the take profit levels for possible exit adjustments.
This trade setup is designed to capitalize on expected short-term price action while managing risk effectively.
This is not investment advice.
41,600 Resistance in Focus: Will Bulls Push Through or Pullback?If the price successfully breaks through the 41,600 resistance level , it could signal further upward momentum, potentially leading to a continuation of the bullish trend. This breakout may attract additional buyers, pushing the price higher as market sentiment turns more positive. However, if the price fails to break through the 41,600 resistance, a pullback is likely. In that case, the price may retrace towards the 41,000 support level , where buying interest could emerge again. From there, the price may attempt another move towards the 41,600 resistance level, testing it once more. This level will be key in determining whether the market can sustain a bullish breakout or if it will remain range-bound between these levels.
Sorry crypto cry babies, I'm right Traders think that scrolling through Twitter and reading the news is enough to get ahead in the world of trading....
There are so many nuances and dynamics that most people haven't yet to even think about. Trading is serious business. The complexity of trading is stacked.
A lot of immature crypto fanboys (I suppose because crypto itself is still in its infant stages) don't see the value of what real markets offer!
Having a group of stallions Fire Off at around the same time each day each day is what real traders look for.
Daily gains and markets that deliver *day after day* is what creates a full-time day trader! Not that whole 'Hold and Hope' culture that bitcoin and its subsidiaries, yes all 13,000 of them, hype up on.
No I don't care what the Bitcoin price is this time next year, I care about my daily and weekly gainz baby!
Dow JonesPair : DJI - Dow Jones
Description :
Completed " 12345 " Impulsive Waves
Break of Structure
CHOCH
RSI - Divergence
Bullish Channel as an Corrective Pattern in Short Time Frame
Order Block
US30 entry short at 42296-85STOP LOSS AT 42356! NOTE if it hit my stop loss, i may consider reshort with 60-70 points stop loss
TARGET 1 at 42233
TARGET 2 at 42174
TARGET AT 42142
Once the price drop below 42250, bring stop loss to 43225
if the price hit first target
bring STOP LOSS to BE
THE DOWThe DOW has came to tap my point of supply which, according to my strategy, indicates that it is time to sell.
Key Breakout at 42,290 to Determine Bullish or Bearish TrendDow Jones Technical Outlook:
The price should break 42290 to start a bullish trend till 42800,
Otherwise, as long as trades under 42290 and 42210 will be a bearish trend toward 41960 and 41775
Key Levels:
Pivot Point: 42290
Resistance Levels: 42450, 42700, 43040
Support Levels: 42080, 41960, 41770
Trend Outlook:
Bearish as long as trades under 42290
Bullish by breaking 42290
Correction It is expected that after some fluctuation, a downward trend will form and cross the support trend line. In this case, the downward trend is likely to continue. If the index crosses the resistance range, the continuation of the upward trend is likely
us30 longI'm entering now risking 100 pips & targeting 450 pips
check back my analysis months back when it was around 40 what was my analysis ..
but we are close to the end will short it soon
Will DOW – US30 Continue to Rise?When the DOW daily chart is examined; It is observed that the price movements continue in the upward trend with the formation of the inverse head and shoulders formation. It is evaluated that the index price can target the level of 44641 by passing the level of 42381 upwards in price movements above the level of 41546 as long as the level of 40094 is not broken down.
