17 Points Profit Today

What a beautiful day for some nice clear signals, although the market has been whipsawing.  Below you will see a 30 minute chart of the Dow Jones and below that a 10 minute chart, but most timeframes were showing weakness at the time, which is ideal.  We want all (or most) of the timeframes to be telling the same story.

On the 30 minute chart at Point A we see a top reversal - our first sign of weakness, but not something that would entice me to enter the market.  We want to see confirmation of this weakness, and this we see at Point B - no demand.   I went short at this point only to watch my profits increase at first, then to be at a loss!  The market rises to Point C, but it rises on even less volume than at Point B.  Plus we have a resistance level around that area.  On a very low timeframe I watched a bar shoot through that resistance level at high speed.  I'm sure that professional money know that many people trade at these levels and often go long when they see the price penetrate upwards, or short when they see it penetrate downwards, thus tricking them, and only to then drive the price the opposite way, which we then see on the bar after Point C.

On the 10 minute chart we see some lovely clear signals.  At Point A we see our upthrust (lovely sign of weakness) and at Point B confirmation by way of a no demand.

I took 17 points profit.