How to use the Stops EP.2 (The DOW stop)

 

Let me show you the second technique on this series :

The DOW stop :

What is it ?

This is another technique that is mainly known by technical analysis traders, it's the DOW Stop technique. Named from the name of Charles Dow, co-founder of Dow Jones.

It is a technique that is already quite interesting, which consist of using a low point and putting your stop below a low point or a high point. But, the problem is that before we have this low or the high point, it is unclear what will happen after.

 

The double bottom or double top :

There are some people that use this technique of the "double bottom". or "double top".

Comment utiliser les stops EP2 (stop de DOW)

Why not? On short time units, it is fine. But, as you can see, for example, between this point and that one. You have 4 hours of gap. I do not wish you to stay in front of your screens for so long. It is a part of the goal of this training too.

So, this is something that you can watch. I am not saying that it does not work, but I am not sure it is very realistic in the modern world. We have so many things to do. Let me remind you this :

"Time is the most important".

 

So, that's it for this technique.

 

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