The Dow Jones Industrial Average (DJIA or Dow) is one of the key stock market indices created in the 19th century. The Dow Jones Average is calculated from 30 public companies. largest in America.

A lot of traders now include stock indices in their portfolios, and the Dow Jones is one of them.

The best time to trade the Dow Jones index

The stock market opens at 9:30 EST, normally you will see the price move in one direction. As shown below:
But sometimes, only about 15 minutes later the price can reverse right after the first push.


After 10:00 a trend is established, and the price usually retests an important threshold such as support and resistance and then resumes its trend.


By about 11:00 to 11:30, the market can still continue to trade in trend, but there is a high chance that the trend has slowed down, the volatility also decreases gradually, the market is likely to move sideways afterward:


11:45 to 13:30 is the quietest time and you should avoid trading during it.

From 13:30 to 14:00, the market started to have high volatility again. If the market went sideways before, it is very likely that a breakout will occur at this time.


From 14:00 to 14:45 is also the time when the market closes, traders will have questions like, is the trend going on? Is there a possibility of a reversal? Is price approaching any resistance support?


From 15:00 to 15:30 the trend can change. If you fail to cut your order in time at critical support, there is a chance that a portion of your profits will be deleted. You need to look a lot at price action in order to understand the market.


From 15:55 to 16:00, a few minutes from the closing time, liquidity will dry up, many traders close positions. However, the price response will be different every day.

2 trading examples and lessons to follow when trading with the Dow Jones Indices

Example 1: Enter an order at an important support resistance


For this chart, our entry point will be the moment the price retests resistance in a downtrend. As the picture above we see, the target entry point is at point 1, but if you miss it, you can still re-enter at point 2.

So, note, trade properly at the supportive resistance level, this will give you a better and more standard entry point.

Example 2: Don't exit the order too soon


As shown in the picture above, you can see that the entry point is very nice, but exiting the order too early makes the opportunity to make more profits missed. And looking back we can see, there is no reason to exit early in this case. No resistance, no exit signals. So early exit in this case is a big mistake.

And here's a chart of a few days later:


The lesson for us here is, do not exit orders for personal reasons, when the market shows no signs of reversal.