Is this small pattern going to mark DJ30 top?
DJ30 H4 chart
Is this small pattern going to mark the top of DJ30 since Feb rally? Bear in mind some lessons about pattern spotting.
- Small patterns are not as reliable as big ones.
- The biggest reversal has to start with a small move somewhere.
- As far as week – week movement is concerned, there is no bearish expansion yet so any kind of short at this moment is counter trend.
- Price is however below this week’s open at this point which means the weekly candle is black at this moment which means that sentiment is bearish. So a short at this current level is in line with sentiment (but not trend).
- Playing small patterns counter trend hoping it will lead to a big reversal, one has to keep eyes open and losses tight.
Going on to weekly chart, the current wave ↓ looks a little smaller but there is no exact size to measure outcome.
Exercise maximum caution and prejudice when dealing with short DJ30 as this one is the most bullish among all stock indices. Bear in mind that shorting DJ30 is fighting the Fed and they could helicopter drop money on the US population to take the Dow to 170, 000. #defylogic