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US 30 ?Fake Breakout: Volume not Confirming
Dow Jones Industrial Average Index
Short
US 30 ?Fake Breakout: Volume not Confirming
By DaddySawbucks
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Updated
Nov 6, 2018
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Oct 30, 2018
Today's 400pt lift in Dow was unconfirmed by volume which declined as price rose. VOLUME DIVERGENCE violates basic Dow Theory:
The session volume in each day's trading reveals nearly all the session volume was traded before the thin air lift at the end of day.
A move against trend must be confirmed by increasing volume to be a true trend change, else it is merely a countertrend movement.
Expect this rally to fail and return to consolidate around price rotation area. Failure will likely lead to capitulation & panic-selling break down.
I could be wrong, but I'm buying a single put Wednesday to test my theory!
This is not investment advice, trade at your own risk and good luck!
Oct 31, 2018
Trade active
Another big lift on thin volume today with MACD divergence. A bull trap!?
Nov 6, 2018
Order cancelled
It's really breaking out!
Chart Patterns
correctionalmostdone
correctionmove
correctivewave
countertrend
dowtheory
fakebreakout
Technical Indicators
Trend Analysis
volumedivergence
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