In the upcoming weeks, the Dow Jones is anticipated to undergo a significant trend reversal. Acknowledging the inherent unpredictability of market movements, I plan to initiate a series of gradual short positions, implementing a methodical risk management approach.
The strategy outlined here is conceived for a long-term horizon, specifically tailored for a 1-2 month period, as indicated by the weekly chart analysis. The foundation of this analysis rests on a confluence of key technical indicators. Notably, I am incorporating the distance concept as formulated by Oliver Velez, coupled with the insights from Tom Hougaard's 72-week cycle theory.
A distinctive aspect of my approach is the decision to operate without conventional stop-loss or take-profit orders. Instead, the focus will be on a dynamic risk management strategy. This involves selectively closing positions that are not performing well in scenarios where the market continues its ascent. Conversely, I will consider augmenting short positions should market trends display a downward trajectory. The primary objective is to target a minimum 50% retracement of the bullish trend that originated in November 2023.
This strategy, while unconventional, is designed to capitalize on the identified technical patterns while maintaining flexibility in response to market dynamics.
The strategy outlined here is conceived for a long-term horizon, specifically tailored for a 1-2 month period, as indicated by the weekly chart analysis. The foundation of this analysis rests on a confluence of key technical indicators. Notably, I am incorporating the distance concept as formulated by Oliver Velez, coupled with the insights from Tom Hougaard's 72-week cycle theory.
A distinctive aspect of my approach is the decision to operate without conventional stop-loss or take-profit orders. Instead, the focus will be on a dynamic risk management strategy. This involves selectively closing positions that are not performing well in scenarios where the market continues its ascent. Conversely, I will consider augmenting short positions should market trends display a downward trajectory. The primary objective is to target a minimum 50% retracement of the bullish trend that originated in November 2023.
This strategy, while unconventional, is designed to capitalize on the identified technical patterns while maintaining flexibility in response to market dynamics.