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DOW JONES 30:
One More Bullish Wave Left, High-Probability Long Opportunity.
Order Flow and Daily Bias Analysis:
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Onlytradings.com has conducted an in-depth analysis of the US 30 index using the ICT Trading Strategy, starting with the daily timeframe to assess order flow and daily bias.
Daily Order Flow:
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The current daily order flow appears bullish. After a significant impulsive wave to the upside, the price retraced below the 0.618 Fibonacci level, suggesting a potential renewal of its previous high. This indicates that a long trade could be ideal at this point.
Daily Candle Formation:
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Upon examining the formation of the daily candle, it was observed that the previous daily candle closed below its preceding daily high after taking out its wick high. This pattern often signifies a potential trend reversal in the subsequent daily candle. Specifically, today’s price action is highly likely to take out the previous day's low (PDL). Following this, we can anticipate movement either to the downside or upside, but the key takeaway is the high probability of today’s candle taking out the PDL.
4H Fair Value Gap (FVG):
- Below the PDL, there exists a 4-hour Fair Value Gap (FVG).
- This gap is expected to propel the price upward, aligning with our initial daily bias that favors a long trade.
Execution Strategy:
- When the price reaches the 4H FVG, switch to a smaller timeframe such as 5M (transition from 4H to 5M, or 1H to 1M).
- Look for trend reversal indicators such as SMT Divergence with NAS100 and US 500, RSI Divergence, Market Structure Shift, liquidity sweeping, and other confirmation signals before triggering your trade.
Risk Management:
- Ensure to move your stop loss to breakeven when the risk-reward ratio (RRR) exceeds 1:1 or 1:1.5, allowing you to enjoy a risk-free trade.
Further Learning:
- For more insights on professional trade management, please follow our posts on X and like our updates.
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