Everyone thinks that the DAX will make new lows today.
However, the German benchmark index tends to feint at the top and break out at the bottom, and vice versa.
Therefore, it can be assumed that the DAX will once again ignite upwards before it comes to a further downward movement.
This long opportunity offers an RRR of around 1.2:1.
In this update we review the recent price action in the German Dax and identify the next high probability trading opportunity and price objectives to target
PAST PERFORMANCE NOT INDICATIVE OF FUTURE RESULTS
The German Dax index bounced off its support at 15 559 points. As a result, it could not yet sustainably dive into our turquoise target zone between 15 528 and 14 313 points. However, we locate the low of the turquoise wave 4 in this zone and expect a new attempt to fall below the support. Only following the turquoise wave 4, we expect a significant rise.
Yesterday at the same level where we are now, sellers showed up, but they didn't create new low. This means they are not strong as they were in previous week so I expect uncertain session or testing higher levels. Bearish scenario should be confirmed by getting out below yesterday's Value Area.
Previous week was really bearish as I expected. There is still possibility to continue this type of distribution, but 15430 is important level from yearly timeframe so sellers may some reasons to cover shorts. I do not expect strong reversal but I will be ready for evetything as always !
Every level means nothing if daily context is in opposite.
Bulls and bears found the fair price in previous week. It can be signal of total uncerteinty or just market's participators had to build the base before next downside pulse. I will be aware of possible responsive activity when the price gets out of previous week value area (yellow) but still, I'm more bearish for incoming week unles buyers will lead the market...
if last low break, don't pick buy ( only above green arrow I will buy)
be careful from mini crash to 14200
keep watching AC indicator on 4hour chart and EMA200 on 1hour (big green line) break it mean new buy signal and up trend
wish you win
Hypo 1 and 2 mean trading in previous day Value Area as market can be uncertain.
Hypo 3 - pulse to resistance from D1 timeframe if prices above PDVA are accepted.
Hypo 4 - previous week's trend continuation
As I mentioned on chart, I see some bearish signals and I will be ready for shorts more than usual. All levels mean nothing if daily trade setup conditions are not met.
We notice that we are in a small correction in the midst of a large correction for the rise, waiting for the weakness of the selling momentum to buy, and we have a divergence in order to sell
Bears reached my target after long down swing. I see 3 scenarios:
1) Testing demand zone again
2) Uncertainty - trading around opening price
3) Bouncing Up a little higher
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