DAX: Bull Flag Following Inverse Head and Shoulders
We have not yet developed a trade around this, but we do note the clear inverse head and shoulders pattern that has played out. Following the penetration of the neckline, there was a bullish breakout, followed by a bull flag (a trend of decreasing highs and decreasing lows). After there is a significant breakout on sufficient volume, we will assume a bullish position. That indicates the bullish trend following the end of the inverse head and shoulders position will continue. The MACD is bullish, positive and increasing, and the DI+ is above the DI- on the ADX indictor, with the . Also technically, the fast and slow stochastics, the RSI and MFI are moderately positive, indicating bullish movements ahead. We define "moderately positive" as a reading between 50 and 70, showing increases at a sustainable rate such that there is not an impending mean reversion.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.