Tuesday 27 November 2012

Test in a rising market

The chart below is just a 2 minute chart of the Dow.  I've used this to show you a clear test in a rising market, which is a very powerful sign of strength, and I traded this and made 10 points.  Point A marks the test.  It is particularly powerful because a sign of weakness appeared on the previous bar, but was immediately tested (at Point A).  Professional money took the price down and found no interest in lower prices (seen by the very low volume), so there was only one way to go - up!


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