A Decade of Sideways Price Action!
Hi all,
In this analysis I want to show how we could be entering into a decade of rangebound price action for the DOW. This would coincide with my analysis on a decade run for the US dollar.
This is an idea I have come up with and think makes logical sense, as the US is one of the most traded markets in the world I couldn't imagen how much damage a total collapse would course world wide.
So in this chart I look back on the monthly chart and see we entered into a ranged bound market in the beginning of the '2000's on the BOP and that lasted approximately 9.5 years before braking out of the range 3 years later.
What is the Balance of Power
The BOP indicator is a technical tool. It continually measures the balance between the capacity of buyers and sellers. It helps traders to determine the dominant sentiment in real time.
Traders use this indicator to:
Let’s take a look at its calculation.
Balance of power = (closing price – opening price) / (high price – low price)
Will price range, I think its a high probability to allow the 200 SMA to catch up with price just like what happened in the '2000's
tools I used:
As always Invest with caution, question your trades and investments.
"The loss of capital is more hard felt than capital gained".
Stay safe,
Crypto Leonard
In this analysis I want to show how we could be entering into a decade of rangebound price action for the DOW. This would coincide with my analysis on a decade run for the US dollar.
This is an idea I have come up with and think makes logical sense, as the US is one of the most traded markets in the world I couldn't imagen how much damage a total collapse would course world wide.
So in this chart I look back on the monthly chart and see we entered into a ranged bound market in the beginning of the '2000's on the BOP and that lasted approximately 9.5 years before braking out of the range 3 years later.
What is the Balance of Power
The BOP indicator is a technical tool. It continually measures the balance between the capacity of buyers and sellers. It helps traders to determine the dominant sentiment in real time.
Traders use this indicator to:
- Identify the direction of a trend
- Find discrepancies between the price and the BOP to identify a potential trend reversal or continuation of the trend
Let’s take a look at its calculation.
Balance of power = (closing price – opening price) / (high price – low price)
Will price range, I think its a high probability to allow the 200 SMA to catch up with price just like what happened in the '2000's
tools I used:
- EMA/MA's
- BOP
- trend based fib extension
- fib retracement
- colour coded rectangles
As always Invest with caution, question your trades and investments.
"The loss of capital is more hard felt than capital gained".
Stay safe,
Crypto Leonard
