DAX Short. H&S, descending triangle, Elliot wave count BEARISH
Now, there are several bearish patterns that have emerged in the DAX chart. The 5-wave count and the H&S pattern with a descending triangle are all very bearish signs showing the correction is not over yet, and there is still plenty of room to fall for the DAX.
Look to enter a trade after the break of the descending triangle pattern, which is also sitting at the 0.382 Fibonacci level, which, when broken, will help accelerate the plunge. My price targets are somewhat conservative, although I am forecasting a large move. My price target 1 is simply at the 0.618 Fibonachi level, which is one of the more significant fib levels. I arrived at my price target 2 by applying the tendency for triangles to breakout to the size of their left boundary. If you are feeling pretty bon vi von, you could look to the 0.786 fib level for a possible target 3 at $24.01
This trade has multiple, strong pattern indicators showing it has a high probability, and using a few ticks above the lower triangle support pattern as a stop loss, it has a fantastic risk/reward ratio of 15 as well. This could take quite some time to develop, but things will move quickly once the 0.382 retracement / triangle support pattern is broken, so a OTM put option buy at that time could be quite profitable.
Look to enter a trade after the break of the descending triangle pattern, which is also sitting at the 0.382 Fibonacci level, which, when broken, will help accelerate the plunge. My price targets are somewhat conservative, although I am forecasting a large move. My price target 1 is simply at the 0.618 Fibonachi level, which is one of the more significant fib levels. I arrived at my price target 2 by applying the tendency for triangles to breakout to the size of their left boundary. If you are feeling pretty bon vi von, you could look to the 0.786 fib level for a possible target 3 at $24.01
This trade has multiple, strong pattern indicators showing it has a high probability, and using a few ticks above the lower triangle support pattern as a stop loss, it has a fantastic risk/reward ratio of 15 as well. This could take quite some time to develop, but things will move quickly once the 0.382 retracement / triangle support pattern is broken, so a OTM put option buy at that time could be quite profitable.