Art DOW Out of The Woods?

In all TA, no 1 single indicator can provide meaningful signal on possibility of price actions.


by looking at 2 very common technical indicators; namely MA and RSI, we see a clear pattern

annotations within this 20 year DJI monthly bar chart explains.



equally critical is the last bar on this chart. it shows a long tail, a very expeditious and large recovery of from it's earlier losses. however, since we are only 1/2 way through the month of Oct, it is too early make a judgement call as yet.

should Oct's bar end with as a doji or a hammer, then, it maybe a strong indicator that a reversal can take place in the months ahead.

however, we must recognise that taking a bullish position now is counter action to an establish bear trend. and so, positions established must be managed for risks.