The Fake DOW triple top

Wow, the DOW really made a significant move today… it shot up and by the time I got home, I had missed all the action.

However, the market had consolidated around the 10350 level. The market had made such a tremendous move that I couldn’t see it moving much higher. Hence my short, I saw a triple top form around 10350 in the 5 minute charts and sold at 10340 with a 20 point stop. However, it proved to be a fake and stopped me out.. it just broke and made a high for the day and then moved back.

This is a big signal… now we are dealing with a failed break to the upside which means the potential for some shorting. I had my entry at 10320 and waited. Then it happened, the market broke towards the downside and I had my finger poised at the buy trade. I didn’t expect a complete DOW breakdown but some retracement.. I just didn’t know where.. the first stop was 10300 (the round number) but when it fell through this it could be a lot more.

However, I got out at 10290 when I saw some support and grabbed 30 points.

In total, I got 10 points….  overall an up day even though it wasn’t much!

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Category: Spreadbetting, Trading