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Dow

Traders often complain about ranging markets and the difficulties they present. However, this is once again a reflection of the short sightedness that traders have and the belief that if the market is not doing something, whatever that something may be then it will never do anything ever again.

I have a slightly different view in that markets that are congesting in a zone offer a glimpse into future opportunities when the indecision ends and one group asserts its dominance.

This is the Dow once again snapped before the close – you can see price is stuck in  band. Now a breach of the lower band is not necessarily a signal for me to go short since it takes more than a drop out of the band to convince me that this is a true downward break. I dont believe in the symmetry of markets.

However, a break above the price band within an existing uptrend would convince  me to reinstate longs that had been dropped out during the week.

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