In this technical blog we’re going to take a quick look at the Elliott Wave charts of Dow Jones stock ( $YM_F) published in members area of the Elliottwave-Forecast . As our members know, Dow Jones is showing bullish sequences in the cycle from the March 18115 low. Recently we got short term pull back that has unfolded as Elliott Wave Double Three pattern that has given us opportunity to enter long trades. In further text we’re going to explain the forecast and Elliott Wave Pattern and trading strategy.
Before we take a look at the real market example, let’s explain Elliott Wave Double Three pattern.
Elliott Wave Double Three Pattern
Double three is the common pattern in the market these days, also known as 7 swing structure. It’s a reliable pattern which is giving us good trading entries with clearly defined invalidation levels and target areas.
The picture below presents what Elliott Wave Double Three pattern looks like. It has (W),(X),(Y) labeling and 3,3,3 inner structure, which means all of these 3 legs are corrective sequences. Each (W) and (Y) are made of 3 swings , they’re having A,B,C structure in lower degree, or alternatively they could have W,X,Y labeling.
$YM_F 4 Hour Elliott Wave Analysis 1.30.2021
Dow Jones Futures completed October cycle from the 25968 low as 5 waves rally- ((3)) black and now correcting it. Wave ((4)) black pull back looks incomplete at the moment. Current view suggests pull back is unfolding as Elliott Wave double three pattern with inner labeling: (W)(X)(Y) blue.
Lets’ take a look price action at the smaller H1 time frame
$YM_F 1 Hour Elliott Wave Analysis 1.30.2021
On the char below we can see that each leg has corrective sequences. Price structure is showing lower low sequences at the moment. We assume that (Y) blue wave is still in progress. The Futures can see more downside toward equal legs from the peak : 29582-28809 area ( buyers zone) . We expect Dow Jones the remain supported and resume rally toward new highs ideally. As the main trend is bullish buyers should appear at the blue box for a 3 waves bounce at least.
You can learn more about Elliott Wave Double Three Patterns at our Free Elliott Wave Educational Web Page.
$YM_F 1 Hour Elliott Wave Analysis 2.1..2021
Eventually Dow Jones made another leg down and found buyers right at the Blue Box area. Wave ((4)) pull back could be already completed at the 29553 low. However we would like to see further separation higher from that low. Once bounce reaches 50 fibs against the middle pivot (X) blue , we should make long positions risk free.
$YM_F 1 Hour Elliott Wave Analysis 2.4.2021
29552 low held nicely during the short term pull back and we got further separation higher. Members who took the long trades are now enjoying profits with risk free positions. Rally from the 29552 low is unfolding as 5 waves rally. Break of 01/21 peak is needed in order to confirm next leg up is in progress.
Keep in mind that market is dynamic and presented view could have changed in the mean time. You can check most recent charts in the membership area of the site. Best instruments to trade are those having incomplete bullish or bearish swings sequences. We put them in Sequence Report and best among them are shown in the Live Trading Room.
Elliott Wave Forecast
We cover 78 instruments in total, but not every chart is trading recommendation. We present Official Trading Recommendations in Live Trading Room. If not a member yet, Sign Up for Free 14 days Trial now and get access to new trading opportunities. Through time we have developed a very respectable trading strategy which defines Entry, Stop Loss and Take Profit levels with high accuracy.
Welcome to Elliott Wave Forecast !