Revisiting Trade Journal on the DOW's market behavior compared with today's market direction based on a simple description of the declines as prices continue to gradually pace itself North-bound. A simple description below based on a revisit to trade journal
A simplified case of two failed attempts to follow-through with the decline, in spite of the huge negative fundamentals then from China and at the 1st quarter of 2016. Had reversed price action to a rally stirred by Brexit, yet still managed to head North as a result of the of the continued overall bull picture. Daily price swings makes room for technical adjustments and providing mix signals. Stick with the major Trend!
On the tech perspective, chart patterns & behavior more often do follow a similar version in a smaller scale that forms part of the bigger picture. This is one of idiosyncrasy made when properly observed.
Related link: Comparative Analysis: #USD & #DOW - Stirred Not Shaken
Update: Soft market gears post FOMC with investors & traders balance act, as who will blink first in the next few sessions heading towards end of the week's activity.
Related link: Comparative Analysis: #USD & #DOW - Stirred Not Shaken
This comment has been removed by the author.
ReplyDeleteEven Mohamed El Erian have noticed similar formation on the correlated currency pair of the Japanese Yen
ReplyDeleteNote that prices have come from a consolidation period, that also signified a widening price range that it has established, hence a simple approach to combine with Price action analysis, where a disjoint angle of projecting a high is based on the declining trajectory line of the lower band.
ReplyDeleteAt times, unconventional trading rules works during certain market conditions. Yet, prices did marked above 18500 before it occurred. The daily up and down price swings are meant to adjust technical lagging indicators nearly over-bought/sold areas to make room for a continuing price direction of the prevailing market trend.