I had been thinking of a pullback before another push, bet there we are. The longer term view with a target of 940 in mind is now looking a better possibility. A lot is said about not taking any notice of "predictions" and "trade what you see". Part of what you see has to do with the past data from charts. If you see a long term uptrend, as we have now, is there really any point in going short? Well, maybe there is for the scalpers, but for those looking for a longer term position and a bigger move, you need to sit out the inevitable pullbacks before jumping on board. Having got yourself into a postion, then is the time to "trade what you see". Hoping it will go on up as the main trend is doing is foolish.You should be looking for an exit point, and one thing or another will tell you when to get out, be it either MA's crossing, some TA formation or whatever. The time to start thinking about a short position will be when the main uptrend is clearly broken. Better still, if you can stomach the wait and potential points lost on the "gamble" is to wait for a down trend to get established, or not , as the case may be.
Looking at today's DOW......The long entry was signalled by the Inv. H&S bounce of the topside of the 100MA at around 15:50. This would have been a safe entry. The exit would have been either the negative divergent peak ( which we didn't get) or a pullback to within 25 points of the 100MA. This is the point at which whipsaws often develop so whay sit on the nasty unpredictable ride? Here was a good out with 180 odd points in the bag.
The next long entry came at 19:07 as the bull flag broke out. I would have had concerns here as the flag didn't develop to it's usual 3 cycles......Still, it went on to pullback to support twice before developing another Inv. H&S before moving off up again.
Although the drop from the entry was only 20 points, SB's would have seen a 40 point move from their entry..... A good case for placing more faith in your TA skills than the price shown by the SB co's.Exit at the end of the day showed a gain of 60 odd points. ANd you didn't hold overnight , did you?
The DOW is trading in a 300 point channel and moving a bit quick to the upper resistance line....
Looking at today's DOW......The long entry was signalled by the Inv. H&S bounce of the topside of the 100MA at around 15:50. This would have been a safe entry. The exit would have been either the negative divergent peak ( which we didn't get) or a pullback to within 25 points of the 100MA. This is the point at which whipsaws often develop so whay sit on the nasty unpredictable ride? Here was a good out with 180 odd points in the bag.
The next long entry came at 19:07 as the bull flag broke out. I would have had concerns here as the flag didn't develop to it's usual 3 cycles......Still, it went on to pullback to support twice before developing another Inv. H&S before moving off up again.
Although the drop from the entry was only 20 points, SB's would have seen a 40 point move from their entry..... A good case for placing more faith in your TA skills than the price shown by the SB co's.Exit at the end of the day showed a gain of 60 odd points. ANd you didn't hold overnight , did you?
The DOW is trading in a 300 point channel and moving a bit quick to the upper resistance line....
