Dow Jones technical analysis: If this bear flag gets busted, bulls could party.

Dow Jones (potential) trade opportunity: What is a busted technical pattern and why should you care

In the field of technical analysis, a chart pattern is said to have "busted" when it does not follow through in the manner in which it was anticipated it would. For traders who were expecting on the pattern to play out as planned, this may be a very unpleasant experience, as it might lead to losses or chances that were missed.

Watch the Video of the Dow Jones futures technical analysis and the potentially (upcoming busted bear flag)

In this particular instance, the Dow Jones futures Futures Futures or a futures contract represents a legal agreement to buy or sell a security or asset at a predetermined price at a specified time in the future. Of note, the parties are not known to each other.These transactions usually involve commodities or other securities involving the buying and selling for a forward or predetermined price.Futures also adhere to a delivery date, which specifies the date of delivery and payment. Relative to other forms of investing futures are much more complex, as Futures or a futures contract represents a legal agreement to buy or sell a security or asset at a predetermined price at a specified time in the future. Of note, the parties are not known to each other.These transactions usually involve commodities or other securities involving the buying and selling for a forward or predetermined price.Futures also adhere to a delivery date, which specifies the date of delivery and payment. Relative to other forms of investing futures are much more complex, as Read this Term (YM) on the four-hourly period have broken below the bear flag, so validating it for the first time. As of right now, we are retesting, but we need to keep an eye out for a fantastic bullish chance, in the event that it materializes, in which price enters and remains within the bear flag, as shown in the following video that provides a technical analysis of the Dow Jones. Early traders who want to bet on an early Long and still enjoy a BALANCE of a healthy probablity to win AND a high reward vs. risk (where the stop would be failry close to the entry and profit target much farther than the entry Entry In financial trading, an entry is simply the point at which a trader enters the market by either buying or selling a certain asset. Entries have two attributes, i.e. the price at which the trader entered, and the time at which the trader entered.There are a number of different types of entry in trading. The most common one is the Market Order. A market order is a manual order, which allows the trader to enter the market virtually immediately upon demand, at the current market price. A trader typ In financial trading, an entry is simply the point at which a trader enters the market by either buying or selling a certain asset. Entries have two attributes, i.e. the price at which the trader entered, and the time at which the trader entered.There are a number of different types of entry in trading. The most common one is the Market Order. A market order is a manual order, which allows the trader to enter the market virtually immediately upon demand, at the current market price. A trader typ Read this Term) can seek a CLOSE of a 4 hour candle INSIDE the bear flag. Early traders who want to bet on an early Long and still enjoy a BALANCE of a healthy probablity to win AND a high reward v Those who are interested in a higher degree of confirmation might search for two successive candles of four hours' duration that close within the bear flag (the channel shown).

A bear flag is a pattern that is considered to be "busted" when the price breaks to the downside on a substantial enough timescale, such as the 4-hour chart. This is an excellent example of a pattern that has been "busted." Bear flags are chart patterns that have the capability of indicating a possible trend reversal. However, when the price instead reverses up and re-enters the bear flag, this is seen as a highly bullish development.

Note the difference between a "busted" technical pattern and a "retest" of a previously broken support or resistance

It is essential to differentiate between a "busted" pattern, which occurs when the price goes much further than just retesting, and a retest of a broken support or resistance level, or any other key price level, which happens quite frequently. A "busted" pattern occurs when the price goes much further than just retesting. A retest occurs when the price returns to a level of support or resistance that it has previously breached. Traders sometimes take advantage of this event as a chance to initiate or exit deals. A "busted" pattern, on the other hand, is far more important and might reflect a change in market sentiment. This movement in emotion indicates that the prior pattern is no longer relevant.

Visit ForexLive.com technical analysis for additional views and trade the Dow Jones at your own risk. May the Dow be with you.

Update: 4 hour candle enters the bear flag (still early since it is not closed yet)