The next trade setup we are looking at is on the mini-sized Dow
contract on a 10-minute chart (see Figure 14-22). After a dramatic rally in
this contract, the Dow started to do a bit of a sideways to down move, possibly
taking a rest before the trend could resume. Sometimes you don’t
have a lot of data points to work with on a chart. In this example, by simply
running price extensions and 100 percent price projections of points 1
through 5, two price cluster zones developed. One was in the 12492–12494
area with three price relationships, and another developed between 12479
and 12485 with three price relationships. We wanted to watch these zones
for a potential low and reversal to the upside to develop from either of
these support zones.