That second peak at the open was worth a short as it failed 32 and showed ND
Plenty of opportunities to get out as the price bounced multiple times off 64.... and in the process brough the triangle setup into view
The third low was the one to look for..... by which time T1 should have been easy to calculate for the expected break
One of the better 7pm setups I've seen in a while
justyn said:Hi Chartman,
I watched the DJIA all day today as it fell, went flat and then quickly rose again. I am an absolute novice and trying to understand what happened.
I have been studying some articles by jpwone (I don't know if you are familiar with him) and was trying to apply what I was learning to my trading today.
I took the advice not to trade in the first half hour and saw the two peaks before the price started to fall. I had guessed a fall was on the cards due to the business news but decided not to break the half hour rule and instead just watched. After 3pm (GMT) the price carried on falling but as there were no upward movements to give me a good opportunity to buy I ended up just watching the price move down.
I knew from previous experience that sometimes there is a move back up at around 7pm or sometimes a little later on and again guessed that the price might go back up but was not confident enough to trade straight away.
In the end I finished up making 21 points when I was confident enough to make a trade.
I was wondering if you might explain a few things I do not understand (I am sorry for my lack of knowledge)? I also apologise if these are dumn questions but I am very new to this and hungry for knowledge.
I looked at your charts and wasn't sure exactly what preference you use for plotting?
I was using the advice I had read which was to use 1 min candlesticks with a 10 period SMA, a 30 period EMA and a 60 period EMA.
I see your chart also has an "RSI" and "CCI" although I don't understand these, I will have to do some research tomorrow.
Please could you explain what you mean by "it failed 32" and also "showed ND"?
I take it you are refering to the fact that the price seemed to hit a support level at 10164 and this was obviously the time to exit the trade?
Please could you tell me what a triangle setup is?
I'm sorry but I am realy lost here! I assume you are drawing trend lines along the highs and lows and as they approach each other to form a triangle you expect the triangle to be breached?
Is this something that you see quite often, maybe once a week?
Congrats on making so many points today. I feel silly making only 21 but that's better than losing 21! And sorry for the long post, its very difficult being a beginner. I appreciate it if you re able to find the time to answer some of my questions.
ChartMan said:Patience is the name of the game sometimes. That second peak at the open was worth a short as it failed 32 and showed ND. Plenty of opportunities to get out as the price bounced multiple times off 64.... and in the process brough the triangle setup into view.... The third low was the one to look for..... by which time T1 should have been easy to calculate for the expected break. One of the better 7pm setups I've seen in a while, giving 70-80 points. Plus a few off the short to squeeze a ton, just.
bansir said:Blimey, you've got a bit o' ground work to do mate by the sound of it!
First off, I suggest you read this link which gives a good outline of CM's methods for trading the dow:
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