27 Jan Intraday DOW Long From Hourly Channel – Swing Trade If Low Holds
Just taken a DOW long based on the hourly channel detailed in the chart below. A 3rd touch of a channel like this one over a short period of time (7 trading days) actually fails more often than not, hence not entering right on the channel itself but waiting for confirmation of support. Also worth noting the channel coincides with the hourly 200 MA (Green).
I realise that there doesn’t appear to be many retail traders bullish on the markets right now, and I’m certainly not bullish from a fundamental perspective, however, technically the trade is valid based on this channel alone (4 hourly and daily don’t look so attractive) so worth taking simply due to the fact one can run very tight stops just beneath the channel.
Entry is at 12,644 and I’ll be looking for signs to have stop loss set at breakeven as soon as possible. The position is double my swing trading size so I’ll look to close 1/4 for +25, another 1/4 at my initial target of 12,700 – 12,708, then run the remainder as a swing trade if the low holds.
Here’s the chart: