DOW

I bought DOW at its 90d m.a. this morning. I did not take a huge position because I feel like the overall trend in the market is weak. None the less DOW's daily chart is very nice, lets take a closer look.

Notice how volume is very strong at each successive higher high. The vertical blue lines in the price pane are just to illustrate where price was on those higher highs. The X's in the price pane are to show exactly what I see as far as volume is concerned and how price and volume are confirming each other and the X's in the MACD pane show a good entry points as far as momentum and timing are concerned.

The pattern keeps repeating itself and during the last higher high volume was strong again indicating no divergence to be wary of, as volume is a leading indicator. Therefore I took the trade and my stop will be placed below today's low. However I will need to see successive close below today's low for me to act on my stop.

A side note, I was asked why I alway's refer to the 90d s.m.a. in my charts. I feel its a moving average that is reliable in the intermediate time frame as far as acting as support or resistance and that time frame is my bread and butter as a trader. I will expand on moving average's and my philosophy regarding them in another post.