FX.co ★ dandre04 | Decoding DJIA: Exploring the Dynamics of Dow Jones Industrial Average! #INDU

Dow Jones Industrial Average (DJIA) Index / #INDU

Good time of day. On the Dow (#INDU) the picture is more interesting than on the Nasdaq, the structure is just begging to be broken down by the textbook. If you overlay Smart Money and Elliott Waves here, you get a pretty logical layout. 1. Wave analysis Looking at the daily (D1), we have a powerful global uptrend. It looks like from the March 2026 lows we have clearly completed the 3rd impulse wave, which extended and updated the all-time highs around 53000. What we see now on H4 and H1 (the last dump on July 16) looks very much like the formation of a local 4th corrective wave (inside smaller-degree subwaves). The correction is going as a three-wave move (A-B-C). On H1 you can see that wave A was at the beginning of July, then a complex B in a flat, and now the final impulse wave C down is catching up with us. 2. SMC

Liquidity grab: At the highs around July 15–16 a large player clearly took the liquidity of those who shorted too early, formed a high and sharply drove the price down. Structure break: On the hourly (H1) we locally broke the rising structure to the downside. The dump on July 16 confirmed that the initiative is with the bears. Pay attention to the daily chart (D1) and the four-hour (H4). The price is now falling exactly into the inefficiency zone and approaching a strong bullish Order Block on D1, which was formed around late May – early June (roughly 51000–51800). On H4 this support block is clearly visible as the consolidation before the last powerful growth wave. Result and action plan

By SMC and waves we are now in the phase of completing a local markdown of the asset. Jumping into shorts at the current levels (52076) means trading in the “discount” zone, which in SMC is considered a mistake. What to do: We wait until wave C fully enters the buyer’s zone (daily Order Block around 51500–51800). As soon as on the lower timeframe (M15–H1) inside this POI we see a substructural break (CHoCH) to the upside and the formation of a new long, that will be the perfect entry point into the 5th wave with targets for a new high (above 53600). For now we just stay on the sidelines and watch how big money builds a position at the expense of panicking retail traders. What are your thoughts, where do you think they’ll be collecting liquidity from below?