How does Jims DDD trading plan work?
Jim is well known for his accurate short-term market forecasts which are based on his work with the Dow 3-day trends (many pros subscribe to his Tactical Trading Outlook advisory just to get these forecasts). And Jims 3-day trend strategy is at the heart of his new Dow Double Diamond trading plan. Jims 3-day trend turns up on higher highs and higher lows, or turns down on lower highs and lower lows, over a 3-day period starting with Monday. When this trend turns up, the market usually moves higher over the following days. And when it turns down, the market usually moves lower over the following days. Why does the market behave this way? Because when the market moves higher over 3 consecutive days, investors tend to buy more. Conversely, when the market moves lower over 3 consecutive days, investors tend to sell more. Its just human nature. But by default, no 3-day signals can be given on Monday or Tuesday. That makes the 3-day trend signals less accurate at the beginning of the week (a
