DOW JONES - EASY 12% SWING
Hello and welcome to this swing trade idea!
I hope you feel good and you are up to make some gains this week. If you ask me, I am ;-)
Let´s just jump right into it:
-Regular Bullish Divergence on the bigger timeframe: Usually this suggests a trend reversal (maybe we have a bottom here at 18200).
-RSI: This creates in combination with the two-dot circles (25400/18200) the bullish divergence (looks good).
-The arrows show us two moves, which can be described bull flags- the first one descending, the second one ascending flag, which is not a reversal, but a continuation pattern (looks good)
-High Volume while selling on the way down to 18200 indicates we may have found a bottom- rising volume while carrying the bull flag and low volume on the retracements (red arrows) demonstrates low powered selling pressure (looks good)
Prediction:
-I think we will retrace once more (second red arrow) and retest the very last resistance at 20800, which is now a support level.
-If this holds, we might see a bounce and a continuation of a third bull flag, or we might retest the 18200 support- at that point, we must wait and see if the support holds or if we see lower lows (would be bad sign)
Conclusion:
All in all, I am very positive up to this, though I am taking the risk of shorting to 20800. If we bounce, I will become bullish again.
Note: I am bullish generally speaking, this idea is a swing trade idea for the short term.
Hope this is informative to you, leave a like or a sub if you enjoyed the content,
your german-quality-trader
I hope you feel good and you are up to make some gains this week. If you ask me, I am ;-)
Let´s just jump right into it:
-Regular Bullish Divergence on the bigger timeframe: Usually this suggests a trend reversal (maybe we have a bottom here at 18200).
-RSI: This creates in combination with the two-dot circles (25400/18200) the bullish divergence (looks good).
-The arrows show us two moves, which can be described bull flags- the first one descending, the second one ascending flag, which is not a reversal, but a continuation pattern (looks good)
-High Volume while selling on the way down to 18200 indicates we may have found a bottom- rising volume while carrying the bull flag and low volume on the retracements (red arrows) demonstrates low powered selling pressure (looks good)
Prediction:
-I think we will retrace once more (second red arrow) and retest the very last resistance at 20800, which is now a support level.
-If this holds, we might see a bounce and a continuation of a third bull flag, or we might retest the 18200 support- at that point, we must wait and see if the support holds or if we see lower lows (would be bad sign)
Conclusion:
All in all, I am very positive up to this, though I am taking the risk of shorting to 20800. If we bounce, I will become bullish again.
Note: I am bullish generally speaking, this idea is a swing trade idea for the short term.
Hope this is informative to you, leave a like or a sub if you enjoyed the content,
your german-quality-trader
May the force be with you