Intraday DOW Long From Hourly Channel – Swing Trade If Low Holds

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:

  • RS2OOO
    Posted at 18:51h, 27 January

    1/4 of the position closed at 12,669 for +25 pts.

  • RS2OOO
    Posted at 19:34h, 27 January

    Closed another 1/4 of DOW long for +21 points.

    Not too confident the low will hold at the moment, so the trade is down to normal swing trade size now.

  • RS2OOO
    Posted at 21:21h, 27 January

    The remainder of this position now goes into the Weekend as a swing trade with stops at breakeven.

    Very high probability it will get stopped out, but the day trade portion of the position banked an aggregate 23 pips so the original intentions of the trade have been satisfied.

  • Pingback:Weekly Swing Trading Round Up; 27th January 2012
    Posted at 22:15h, 29 January

    […] ugly plenty of times before and renewed strength appears to come out of nowhere. I entered a DOW channel support long today as  a day trade, took profits on half and continue to hold the 2nd half as a swing […]

  • RS2OOO
    Posted at 23:05h, 29 January

    Short term I’ve changed my mind about this position as the reasons for holding it as a swing trade are currently too weak. Therefore, I exited the swing portion of this position on the futures open for a gain of 44 points.

    I wont list this trade in the Swing Trading log as it does not really constitute a swing trade.