First we should know about this index ?
What is Dow jones and why we should follow its price for next day to Trade in Indian market (Nse live ):-
Dow jones is an index of America likewise –For indian market Nifty50
“ (DJIA) “ has 30 companies listed in it .. and if we track Dow jones live price and future price of its we can find the next day move for indian market .
Companies that comes in Dow jones lets take and example :-
1.Nike 2.Microsoft 3.Apple 4.Caterpillar 5.Cisco 6.Coca cola 7.General electric 8.IBM 9.Intel
so Its a largest index in the world all major countries stock market industry follow this index and even indian market and traders also follow this
Timing for American markets in the term of indian standard time format 7 PM- 1:30 AM
Websites to watch live chart :-
Now next ?
if Dow jones closed in bullish next day indian market (Nse live ) will be also “Bullish”
if Dow jones closed in Negative next day indian market (Nse live ) will be also “Bearish ”
Stock selection for Next day :-
if you find that next day market will give you some upmove so you should pick stock that is in a good mood for bullishness or in from past 2-3-5 days it shows you some bullish move so just add that stocks in your watchlist for day trading.
if you find that next day market will give you some downmove so you should pick stock that is in not in good mood for bearishness or in from past 2-3-5 days it shows you some bearish move so just add that stocks in your watchlist for day trading.
If you have already positions so what should you do ?
first find next day trend if you got then try to exit with small loss or keep with the trend ..
if you have bought and trend of DOW jones is also bullish so you should wait and ride the trend with market trend with trailing stop loss .
if you have sold and trend of DOW jones is also bearish so you should wait and ride the trend with market trend with trailing stop loss .
Technical analysis on “Dow jones” .. ?
if you have some knowledge about charting and multitimeframe analysis then you should open chart with one of sites that i have mentioned earlier and do some analysis on it and find the support resistance and draw trendline at higer time.
If you look for intraday you should follow Daily – 4hrs -3hrs-2hrs -1hrs-30 min timeframe for analysis of any stock and take for buy at near support .
And for short try to find the near major resistance at higher timeframe and follow this procedure for all stocks and also all indices it gives you the best result to track any indices and any stocks.
Must read –intraday strategy