Time to short the Dow?

tradesmart

Experienced member
1,286 22
JE - just a retrospective - when it's trending strongly northwards as today, I've noticed that you get these apparent ND tops, but they only result in an drop of 10-20 points (or less) which is not really tradeable.......

same goes for when it's trending strongly south as on Friday - the PD on RSI on the way down will produce only a minimal rise....till it reaches the bottom that is........! :confused:

glad to say that sticking to longs today has produced quite a 'golden' day for me - I was going to have half of shandy this evening, but I'll splash out on a pint of mild instead......... :LOL:
 
Last edited:

nomish

Junior member
42 0
We are increadibly overbought, im just waiting for a slight pull back, hit the moving avg and get back in.
 

Attachments

  • djia.gif
    djia.gif
    9.7 KB · Views: 316

ChartMan

Legendary member
5,580 46
TS- you may be right about the slope change. However, I prefer to ignore the "noise" in trends, which you haven't done. It's not a case of which is right, or which is wrong. It's a case of two valid alternatives. Time will tell. Also, you rightly pointed out that in a strong trending day, The ND tops may not be the actual top, as today. That's not a good enough excuse to ignore the rules, though.... just in case. As for the apparent bottoms, ignore the temptation to go long unless you can see confirmation by way of volume divergence on ES. That's usually a pretty good qualifier. Strange that you tend to get 3 lower peaks on the vol at the right point. Don't know how/why that works, but it does. :cheesy:
 
 
AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock