DOW JONES: Long setup with LuBot indicator

2023年2月13日As can be seen on the graph, a good entry setup has been formed on the Dow Jones index through the use of the LuBot indicator.

We have several points in favor of a Long trade including:

1. The last signal shown is Long, in this case we will only follow the entry setups for purchases;

2. TrendCloud is positive and supportive

3. Price returns to TrendCloud and closes above ema21

4. A new Swing HL (HigherLow) is formed so we have a higher low than the previous one

5. ema100 higher than ema200, this indicates a bullish configuration

6. The color of the TrendCandles candles are green thus favoring the Long setup

By Cons we have only the trend channel that intersects with a resistance level . This could slow down or limit your ascent. So I recommend caution.

The Trigger would occur at the break of the previous high where a Buy stop order can be placed.
I enter the Stop Loss below the last 2 swing lows and the Take Profit on the next resistance level .

The risk-return of this short-term operation is 1:1.3
The position will be managed according to the next movements. If the market shows no strength to reach the take profit you could close the trade manually.