Ok I've gone short on the DOW. I'm seeing a dowtrend in the daily charts.. it's a series of lower lows and lower highs. I believe that the market has just completely it's retrace from the downtrend and now going to make it's way down. The blue line shows that there has been a resistance where price was contained, this is around 15080. I'm hoping price will head lower to 14650 or so where my target is.
I played the Dow countertrend yesterday, the Dow had fallen heavily and I took this to be the start of the downtrend after weeks of bullish movement. I was expected to see a pullback from the bullish movement of the DOW and this was my signal for it. After the huge move down, there was an initial move up and this was what I took to be the pullback before lower prices. Unfortunately, I was wrong this time.. the DOW powered ahead.. it's shot up around 200 points and have broken the previous high!
Unfortunately, I had two losing trades this week... firstly the USDCAD long I had gone long this pair as it looked as though the downwards momentum had stopped.. I could see some support here. When I got a bullish signal, I entered long. However, this was very short term as the trend was still short and my stop got hit. My next trade was the DOW short: I got a bearish daily pin bar and the market had recently breached higher yet fell.. a bearish signed. I went short.. unfortun
