Trading the Dow with Support and Resistance

spudface

Newbie
4 0
Hello folks, my trading method is as described in the title. Support and resistance drives market direction so it follows that understanding and recognizing these levels is vital when trading any market. My market of choice will be the Dow (US30). I will be starting small, spread betting £1 per point using IG index.
 

fibo_trader

Legendary member
7,633 131
Hello folks, my trading method is as described in the title. Support and resistance drives market direction so it follows that understanding and recognizing these levels is vital when trading any market. My market of choice will be the Dow (US30). I will be starting small, spread betting £1 per point using IG index.


Won't work for at least this year. Donald Trump creates all support and resistance level with one or 2 at the most, tweets. Study him, its way better - easy in is when Ivanka buys and sells. She knows when the tweets come out and is positioned already. If right leg crosses left go Long and vice versa
 

spudface

Newbie
4 0
Won't work for at least this year. Donald Trump creates all support and resistance level with one or 2 at the most, tweets. Study him, its way better - easy in is when Ivanka buys and sells. She knows when the tweets come out and is positioned already. If right leg crosses left go Long and vice versa
Interesting reply 'fibo' but as long as there are support and resistance levels I don't care who provides them.
 

spudface

Newbie
4 0
My first trade arrives when fundamental news drove the market down (Asian virus is spreading) Although I don't trade the news as such it's good to keep one eye on it. I already had this support line drawn in (Red line) and being rather an aggressive trader (sometimes too aggressive) I entered at 29206 with a stop at 29176. So far at time of posting it's going my way but of course by the time you read this I may well have been stopped out, time will tell.

4 Hour Chart and 1 hour Chart
 

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robbx

Junior member
12 1
I have to resist the urge to get out at breakeven when the market goes against me when price hits resistance as in the blue line. As the blue resistance is weaker than the red support I'm hoping it will break to the up side. Time will reveal all.
 

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robbx

Junior member
12 1
The price broke through the descending blue resistance line (in above chart) but reacted strongly when reaching the next resistance level at 29263 (blue horizontal line) crashing down wiping out all my gain. My support (red) line still holds with the price hitting and bouncing up again showing the validity of that level....for the moment.
 

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robbx

Junior member
12 1
I think knowing where to place your stoploss is as important as knowing where to enter a trade. I placed my stop at 29176 just below what I considered to be an important support level at 29182 (blue line). Had I placed my stop a few pips below the red support level I would have been taken out for a loss. So for an extra 10 pips or so I remain in the trade....for now.
 

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robbx

Junior member
12 1
Why the two accounts?
Yeah I just spotted that. I joined T2W way back but forgot my login details so registered another account. Seems the old account sprang up somehow confusing things when I log in. I'll delete one, or maybe that will delete some posts. I'll just continue with this account.
 

Dowser

Experienced member
1,509 361
Yeah I just spotted that. I joined T2W way back but forgot my login details so registered another account. Seems the old account sprang up somehow confusing things when I log in. I'll delete one, or maybe that will delete some posts. I'll just continue with this account.
Fair enough, good luck with the thread
 
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robbx

Junior member
12 1
Exit Trade for 50 pips
It was pretty wild ride but one that came good in the end. I decided to take profit when the price ran into a resistance level show in the chart as a thick blue line. It may well go up from here but I'm willing to wait for the US open in about an hour or so before entering another trade.
 

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fibo_trader

Legendary member
7,633 131
Won't work for at least this year. Donald Trump creates all support and resistance level with one or 2 at the most, tweets. Study him, its way better - easy in is when Ivanka buys and sells. She knows when the tweets come out and is positioned already. If right leg crosses left go Long and vice versa



Pretty much everybody is Short today, Ivanka is Long
 

robbx

Junior member
12 1
The market opened in the US and exploded up with a long 5 minute candle. If there's one thing I've learnt from many years of trading it's never to jump into a trade, I always let the price come to what I see as a strong support/resistance level. On the one hour chart I have drawn in my new support level (thick red line) and entered long at 29244 with a stop loss at 29212. The trade at the moment is going my way and we'll see what happens in the next few hours.
 

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