The Dow has been a market I’ve been long on every since it broke into all time highs. That’s a very bullish event for these indices, whenever they break into new highs, they usually have a good run.
However, this last week the market has been a little bearish as it runs though a correctional phase after printing high highs. This is to be expected, normal market movement here – as nice stable trends don’t really move in a straight line, but rather in a stepping motion.
I was confident that the market would pick up off higher lows, so I was happy to hold the trade – however annoyingly the slow progress last week has caused me to build up some $500 worth of swap charges.
But now it looks like the trend pressure is back, as another price action buy signal printed off higher lows.
This is a good signal because we have a very stable trend structure here, with the higher high, higher low structure, and the market riding nicely on the mean value of the trend.
The signal is the large bullish outside candle, which communicates the market tried to move down that day but ended up reversing and closing higher than the previous day.
I am expecting the next wave of higher prices to develop out of this signal.
Climbs into higher prices will likely occur during the US session.
Best of luck on the charts.
Lazlo
Hi, not to be rude or anything. I’ve had a look at your trades up till 2013.. I’d like to know how do you identify these areas of Support and Resistance? Your levels are quite good and there is possibly a continuation or turn when price reaches them…
On my charts I use the Weekly chart to map each and every turn in price. And these represent my levels…
Replying to: Lazlo
Dale WoodsAuthor
Yes that is my secret, I heavily make use of the weekly chart to spot major turning points.
Lazlo
Damn, admin, your entries are just near perfect, if not perfect.
I am looking at your charts and I am learning a lot about Support and Resistance levels. I recently tried it out and it didn’t really work out for me. I am mostly looking at your Support and Resistance levels. I am missing them by a few 10 pips and it is making a negative difference in my trading…
Any help?
Kamoru
What do you think about last week weekly bearish pin ?