Professor’s Comments May 29, 2020
Posted by OMS at May 29th, 2020
I don’t see much happening today. Given the recent wave 3 impulsive rally, my most likely scenario for the Dow is for it to form a wave 4 triangle. To do this, the index should bounce around between 25,300 to 25,750 for the next week or so, and then make one more push higher for final wave 5 up. Wave 4 triangles can be difficult to trade, so scalps only.
BTW, thanks to the student who spotted the divergence in the QID during yesterday’s follow-on training session. The late trade put a cap on a really nice day that included trades in DDM, gold and TBT. I’ll be trading the same vehicles today, especially if the Dow pulls back early and gives me a good entry point. Best chart to trade the developing triangle is a 4 min, 4-day layout. If you see the 1-2-3 set-up I showed you in the Scalp Trading Class, trust the indicators. Don’t anticipate.
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Not sure of the terminology we use? Check out these articles
The Hockey Stick Pattern
The Creation of Waves and Trends
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Category: Professor's Comments