Last week, the DAX pushed into fresh all-time highs, and I warned against becoming the trader who buys at the most expensive price just before the market finally decides to pull back. Instead of chasing strength, the goal was to wait for price to give us some relief and look for an opportunity to enter at a more favorable level.
Thanks to the bearish Butterfly pattern, we were able to do exactly that — identifying a potential reversal zone and waiting for price to retrace into an area where buyers could step back in. Now, the DAX is showing some encouraging signs, with multiple bullish candles forming and suggesting that this may be the level where the retracement finds support.
For confirmation, I’d like to see price break and close above the current sideways consolidation channel, signaling that buyers are regaining control.
Because the broader trend remains strongly bullish, a conservative target would be a retest of the previous all-time highs. However, given the strength of the overall trend, I would want to maintain some exposure to the possibility of a continuation move higher if momentum carries the market beyond those previous highs.
Please leave any questions, comments or share your ideas below
Akil
Thanks to the bearish Butterfly pattern, we were able to do exactly that — identifying a potential reversal zone and waiting for price to retrace into an area where buyers could step back in. Now, the DAX is showing some encouraging signs, with multiple bullish candles forming and suggesting that this may be the level where the retracement finds support.
For confirmation, I’d like to see price break and close above the current sideways consolidation channel, signaling that buyers are regaining control.
Because the broader trend remains strongly bullish, a conservative target would be a retest of the previous all-time highs. However, given the strength of the overall trend, I would want to maintain some exposure to the possibility of a continuation move higher if momentum carries the market beyond those previous highs.
Please leave any questions, comments or share your ideas below
Akil
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tieronetrading.com/
FREE Trading Computer Builders/Buyers Guide
tradingcomputerbuyersguide.com/optin-629312741738938873920
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Learn To Trade (Coaching, Courses & Community)
tieronetrading.com/
FREE Trading Computer Builders/Buyers Guide
tradingcomputerbuyersguide.com/optin-629312741738938873920
tieronetrading.com/
FREE Trading Computer Builders/Buyers Guide
tradingcomputerbuyersguide.com/optin-629312741738938873920
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.