Trading the Dow

Hi

I trade the Dow on a 5 min chart using basic price action and an understanding of how price moves. I will show you how to do this through my trades which I will post in real time with entry, stop and target. All very simple. Maybe I will get a trade or two tomorrow. I trade the US session. I don’t use any indicators at all. I’m doing this to perhaps help those struggling with trading. My methodolgy works on all indices and forex crosses, I just like the Dow. Till tomoro…

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Plan your trade and trade your plan, as they say. The plan here is to wait for price to retrace to between 50 to 100% of the last down leg and take a short should price turn lower again in this area, just have to wait and see.


Trade Cancelled/No trade. For a couple of reasons: the possible double bottom at 17.850, the very bullish long bodied candle and the fact that the Dow along with the SnP often catches Rallies later in the trading session, I’d be looking for a possible new local HH and then look for longs, if that happens. If not and price drops here I’ll look for shorts later. We have US factory orders out in an hour so probably no trades till after that. To be sucessful at trading you must be able to sit on your hands for long periods waiting for only the best set ups

Ok any shorts, however tempting would now be out at BE or underwater target for this move is D where AB=CD still no trades


Edit looks like we had some news event with iratic price movement, not a market I want to be in at the moment

ok a new low very good will be looking to short retracements from here on

Back to trading the plan now the spectre of a double bottom is lifted: shorting in the 50-100% retracement area depending on price action


Here AB does=CD a decent place for a counter trend scalp but I dont trade counter trend waiting for retracement, though this may just keep dropping the Dow didnt like factory orders


Like a lot of traders using the 5 I use the hourly for reference and trend IMO we are in a correction from the upleg from 1770 to 1800 and entering an area where price may resume the upleg (the 50-80% retracement area), corrections are much harder to trade than an impulse leg in a bull market, this makes me very cautious still no trades and no money has been lost just wait for the easy ones and dont do anything stupid in between


Short target the 127 extension where AB=CD


stop to 17.865


Risk eliminated stop to entry


(to the pip) +34


Short


manually closed for 5 pips as I have to go out back tomoro good luck


Just have time for this trade short, back later or tomoro


Yesterdays target hit for 28 pips (FXCM trade markers disappear after a day)


I want to see whether price breaks higher or lower here before looking for any trades


Dow 4hr


Feds out later, trading may be either slow or erratic, worth keeping in mind, could be some insider front running or prepositioning

looks like its down again