Potential DOW Intraday Short Set-Up 5th March 2012

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
FX Forum.

  • RS2OOO
    Posted at 22:19h, 05 March

    Shortly after this post I entered a short position in DOW which is now a trapped short sitting halfway between the entry and the stop loss.

  • Harry
    Posted at 15:51h, 06 March

    Been following your site every day for a few Months and always suprised how few comments you get about your posts. I’ve read tens of trading Blogs over many years but when I read what you have to say it’s worth taking notice of because you always seem to be right. When you post a trade, the market moves!

    I hope you don’t mind me saying, I took 1 or 2 of your trade ideas and did very well from them. Thank You.

    Keep up the brilliant work.

    • RS2OOO
      Posted at 22:48h, 06 March

      Thank you for your comment Harry. Some very kind words, very much appreciated.

      I don’t recommend following my trades directly (They are never to be interpretated as trading recommendations), but I’m pleased the ideas gave you something to work from.

  • RS2OOO
    Posted at 16:39h, 06 March

    Although the retrace went beyond my initial expectaions, the set-up played out well overall and gave profits of 166 points across 2 short trades with profits taken both just before the target price of 12,850, and remaining profits taken at 12,806

  • Pingback:This Week's Swing Trading Round up;10th March 2012
    Posted at 16:07h, 10 March

    […] 12,952 based on a 2nd failed test of the now resisting 4 hourly trend line that I posted details of HERE and HERE.  This could turn into a swing trade but I’m not too sure just yet. Trade goes […]