05 Mar Potential DOW Intraday Short Set-Up 5th March 2012
DOW Price has been trading within the confines of a box on the 4 hourly chart and this afternoon we’ve had the first 4 hourly candle close outside the box limits.
As an aggressive trade I’ll be looking to enter short on confirmed failure of price to re-enter the box and I’ll be targeting an initial down side move towards the 12,850 area where both the 61.8% Fibonacci retrace and the 200 MA reside. Strength from 12,850 would then likely retest the box limits once again (possibly an aggressive long entry from 12,850) and from there further trading decisions can be made, ideally ahead of a “box trade” short entry.
If price retraces beyond 50% of the box width (on a candle closing basis) we could then expect an upside break to a new high:
I will be day trading this and posting live entries and exits on the ADVFN