Dow Intraday charts 27/05 31/05

[mombasa]

ah, presumably because of the potential success / failure of the pullback at 8800?

If the pull back had failed there, would it have been ok to go short there rather then wait for break of 8760? Probably not since that was support earlier?

 

[mombasa]

ok, last question - I started about 15 min after open and didn't see the expanding triangle. Chances are I would have gone long on the first or second pullback.

First one would have been a good call, second one not so because the target fo the first pullback was not reached? Also, shortterm ND was setting in.

Also, would u expect the expanding triangle to break to the upside? Not sure how to read these reverse ascending triangles.

Thx

 

[ChartMan]

Mombasa- I think I said 8860- long 8810 short. 7860 is off the map! A bit of a broad statement. Stocks are in two states, trending or rallying. 8860 was clearly the top of the sidewas channel, so a break above that would put us in rallying mode... a break below 8810 would see a likely big drop... perhaps 8825 would be a bit closer for the short call...
On the expanding triangle,they're difficult to call. I'd prefer not to second guess, except with maybe 1/3 stake. The basically signify big moves coming. Get the direction wrong and poof , you're down 50 points in 2/3 minutes. That move did 40 points in 3 minutes. How to blow £400 in 3 easy steps....
Lastly, I don't trust anything at the open..... unless it opens flat, ie no gap.

 

[V. III]

Could Chartman or one of his disciples pls explain (or point me to an earlier explanation) the main concepts behind ND Top, PD Bottom, SR/RS switch.

Thanks in advance.

V. III

 

[ChartMan]

go to the bottom of this forum and do a search for divergence and switch..... from the earliest date