SDOW is shown here on a 30 minute chart current rising above a parallel descending channel
which is within a longer trend of a downward-facing megaphone pattern where it is currently
situated near the top of the megaphone. I have drawn the two trendlines onto the chart
and added an RSI indicator. My plan is to take a short trade on SDOW by looking for an entry
on the 5 minute time frame where the HA candles are red and the RSI has dropped below
50. I will set the stop loss above the resistance trendline while targeting the support
trendline at the low of the pattern.
which is within a longer trend of a downward-facing megaphone pattern where it is currently
situated near the top of the megaphone. I have drawn the two trendlines onto the chart
and added an RSI indicator. My plan is to take a short trade on SDOW by looking for an entry
on the 5 minute time frame where the HA candles are red and the RSI has dropped below
50. I will set the stop loss above the resistance trendline while targeting the support
trendline at the low of the pattern.