The DAX continues to show signs of bullish strength after recently breaking and closing above a key structural resistance level. Following the breakout, price is now pulling back into the previous area of interest, creating the possibility for a continuation trade should buyers step back into the market.
While the broken structure level itself is important, the primary focus is actually the previously broken bullish pennant pattern. That breakout zone now acts as a much larger area of potential support and could provide the foundation for the next leg higher.
Of course, broad zones alone aren’t enough when it comes to executing trades efficiently. This is where additional tools such as volume profile and Fibonacci retracements become valuable. By combining these tools, traders can better identify where inside the larger reversal zone price is most likely to react, helping improve precision on entries, stop placement, and overall risk-to-reward potential.
Hope you enjoyed the analysis!
Akil
While the broken structure level itself is important, the primary focus is actually the previously broken bullish pennant pattern. That breakout zone now acts as a much larger area of potential support and could provide the foundation for the next leg higher.
Of course, broad zones alone aren’t enough when it comes to executing trades efficiently. This is where additional tools such as volume profile and Fibonacci retracements become valuable. By combining these tools, traders can better identify where inside the larger reversal zone price is most likely to react, helping improve precision on entries, stop placement, and overall risk-to-reward potential.
Hope you enjoyed the analysis!
Akil
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Learn To Trade (Coaching, Courses & Community)
tieronetrading.com/
🎵Check Out My Top-Rated "TRADING COACH PODCAST" (Available On Your Favorite Podcasting App)
tieronetrading.com/
🎵Check Out My Top-Rated "TRADING COACH PODCAST" (Available On Your Favorite Podcasting App)
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Informacje i publikacje nie stanowią i nie powinny być traktowane jako porady finansowe, inwestycyjne, tradingowe ani jakiekolwiek inne rekomendacje dostarczane lub zatwierdzone przez TradingView. Więcej informacji znajduje się w Warunkach użytkowania.