DAX hanging on a cliff
Spotted these two classic reversal patterns wrapped into one. In red is a diamond top. As per Thomas N. Bulkowski book Encyclopedia of chart patterns, the top diamond results to declines of 20% and hits this target 79% of the times. It has a failure rate of 25%. This stats command attention. So watch this one.
The second pattern is a possible head and shoulders.The blue trend line marks the neckline . Bulkowski stats on this one are equally impressive ,declines of between 20-27% with a 67% success rate and a failure rate of 8%.
Needless to say the DAX is at an interesting juncture
The second pattern is a possible head and shoulders.The blue trend line marks the neckline . Bulkowski stats on this one are equally impressive ,declines of between 20-27% with a 67% success rate and a failure rate of 8%.
Needless to say the DAX is at an interesting juncture
Note
We are now down 9.3% from the diamond break at 12339. Which i read as nearly 50% of projected 20%. Good level to bank some profitsNote
Is the pattern still alive ? , i wonder. If 12436 holds, it might very well be.Note
Interesting development. Notice the short range bar marking the high at 12656. We see good rejection on the follow through. This has occurred right at resistance zone inside the diamond pattern. Expecting more downside. Would not be surprised if 11620 low is retested. Positioning short
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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.