One of my favourite pattern is showing up on the one and four hour chart. I’m a very short-term trader who often scalp a couple bucks intra-day. However, I will be opening a position in this longer timeframe trade, because I just cannot pass on it. This is a bearish pattern. I don’t know if there is a name for it, if there is one please educate me. This is basically a double-bottom with a double-top between them. What I observed is that it is often followed by a strong reversal following the double-bottom, then make a double-top again, and then fall again. I do not know how far the reversal can go; sometimes it is stronger, sometimes less. My target is about 265, which would bring us to January high and make at the same time a double-top (it would make sense). It is also not sure that the selloff would be has bad as I show it on the chart, here again it is pure speculation and charting is not an exact science.
Following is my trading plan: 1. Open CALL DIA 2018APR20 250.00 (if I’m right, we have minimum a 10 bagger here); 2. Close Call position; 3. Open PUT DIA 2018JUN15 250.00; 4. Close Put position if price don’t break 255. If it breaks it, let it go! (Final target: 200)
As you can see, it is a very speculative trade, but I have been successful trading this pattern in the 5 minutes chart, so I’m giving it a try in a longer timeframe.
Thank you, all comments are welcome,
Commento
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Good day, I added a second scenario (in pink) and also revised my targets lower (I must admit that it was a bit optimistic), but the idea remains the same; some upside following by a serious selloff. As of now, the worst I can see for DJI is 22900, so I will open a small long position and average down if we reach that. I'm still holding on my puts until we can see some signs of a rally beginning. Thanks,
Commento
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My trading plan for this week assumming that we are going up until we reach the top trendline of the triangle (in green). Basically, i have a long position that i will hold and I will be shorting at all the tops marked by a water drop.
Commento
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We are getting close from the top trend line of this descending triangle (green). You remember the last time? It dropped. I will be buying a couple puts if a candle gets close to it. But overall everything looks good: I think that we are going to break through this triangle, however I expect some resistance, and a trap (bear or bull, to early to tell, but I would bet on a bear trap). Cheers,
Commento
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We are approaching the trap at 242. This will be the moment of truth: Are we going long or are we going short? I will be long if 242 holds. If not then I will be short. Expect a confusing setup. I think that it is better to be patient in this trap.
Commento
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Looks like the DJI is stabilizing; a good time to iniate a long position. I will adding if it breaks through 242.
Commento
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Inversed H&S in formation; I will be adding calls on the right shoulder at around 241
Commento
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definitively not good
Commento
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Pink scenario it is. Sold my puts, waiting for a retracement for selling my remaining calls and open puts again.
"Dow Jones Industrials 30 Stock Average" -- This is what I see at this time 4-6-2018 daily chart.
Resistance = 4-5-2018 high 24622.30
From 4-2-2018 low 23344.50 to 4-5-2018 high 24622.30 counts best at this time as A-B-C up move.
Resistance must be taken out for this A-B-C count to change. New lows "May" be coming.
Other "Elliott Wave Counts" do exist.
Just sharing my thoughts,
"One Eye Jim"
jeffreyjim
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Good chart work 4-2-2018 added comment -- "Thanks"
I like your April 2,2018 add comment (Chart Work -- Wave Count) the best.
Very possible at this time 4-3-2018
Resistance = 4-5-2018 high 24622.30
From 4-2-2018 low 23344.50 to 4-5-2018 high 24622.30 counts best at this time as A-B-C up move.
Resistance must be taken out for this A-B-C count to change. New lows "May" be coming.
Other "Elliott Wave Counts" do exist.
Just sharing my thoughts,
"One Eye Jim"