DOW

In my other post to you Paitech, I did say if the Dow goes above it’s high then longs back on...as long as higher highs are continued then you can stay long, just look out for signs of 123 tops or lower lows..
This market is behaving crazy, and when every body is trading(public), then you know a top can’t be far away...
Apparently 1 in 5 Americans are trading.....that’s a lot of newbees, so market is getting primed for a drop soon...
So basically look for a 123 top formation....but these are kinda risky to trade as moves down normally happened in 3 waves so you do get a lot of false signals...so have to be ready ..
So basically play smart....

I am really confused.
Remo said Dow could go down and I closed most tmy long positions, and now TF is saying it will go up?
I am not sure what I should do?
Buy my longs back ?
Please confirm Remo, TF

No idea about waves/elliot waves...so can't give my view here Ron....nice post and chart btw...

i do think technically the Dow's next stop is 35,000.
This is very much in bull mode.....so no shorting here....buy the dips imvho.

stay safe folks...

atb
trendfriend

Hi Paitech - np, I know it's not like the heydays although it does seem to have picked up on here this year which is good.

It's not a pattern I'd ever come across until this year but from the details on the link I posted it does seem to tie together. What i don't get is that what i've read suggests megaphones generally occur as wave 5 - which would fit that this has been wave 5 of move from 2008 but then they frequently breakout to the upside...which would tie in with world events if Biden is about to inject a ruck load of cash into the economy...but then if it's wave 5 and it breaks upwards, where is the ABC wave going to come from

Hi Ron,
I saw your entry yesterday, but am no expert... and our resident experts are not on here frequent....
Sorry...
Ta G

Hi all, looking for some advise/comments from those that know more about charting than myself (so everyone )

I've been looking at the weekly on the dow for a while and comparing it to the megaphone pattern, until yesterday I couldn't really get it to fit. Then yesterday I moved my start point forward from Feb 2018 to Mar 2018 and everything (seemed) to fall into place.

It appears we're approaching the end of the 5th swing. The swings seem to comply with fib extensions between 1.27 - 1.62 [1-3623,2-5513(1.52),3-8157(1.47),4-11367(1.39)] with the 5th swing needing to extend approx another 1000 points to fall into the bracket.




My question is do you think this is a valid application of the pattern (the chart is futures as I don't have access to daily with any chart software)?

If it is then it would suggest we are about to either breakout (target 40-42k, stop below 29.5k) or breakdown (short below 29.5K, target approx 23k) - either of which would be pretty lucrative trades!

Also interesting that RSI has complied with downtrend resistance for the duration of the pattern.

As i said - comments appreciated as can't tell if i'm barking up the wrong tree.

Cheers