A potential trade setup for the upcoming week on DAX Futures presents an opportunity on the short side.
Analyzing the price action, we observe a bearish impulse wave that started at 23,504 and dropped to 22,263, forming a clear five-wave structure. The subsequent three-wave correction suggests a temporary retracement rather than a trend reversal, implying that a new bearish leg could follow.
The expected downward move has two key targets:
First target: 21,872
Second target: 21,400
The bearish outlook remains valid as long as price does not break above 23,504.
Entry Strategy
Our short position will be triggered once the price falls below 22,874, confirming a breakdown under the EMA 5 and EMA 10.
Entry: Below 22,874
Stop Loss: 23,248
Target 1: 21,872 (R/R = 2.60)
Target 2: 21,400 (R/R = 6.40)
This trade setup offers a strong risk-reward ratio, aligning with the broader bearish structure. If price invalidates the setup by moving above 23,504, we will reassess the trade idea accordingly.
Analyzing the price action, we observe a bearish impulse wave that started at 23,504 and dropped to 22,263, forming a clear five-wave structure. The subsequent three-wave correction suggests a temporary retracement rather than a trend reversal, implying that a new bearish leg could follow.
The expected downward move has two key targets:
First target: 21,872
Second target: 21,400
The bearish outlook remains valid as long as price does not break above 23,504.
Entry Strategy
Our short position will be triggered once the price falls below 22,874, confirming a breakdown under the EMA 5 and EMA 10.
Entry: Below 22,874
Stop Loss: 23,248
Target 1: 21,872 (R/R = 2.60)
Target 2: 21,400 (R/R = 6.40)
This trade setup offers a strong risk-reward ratio, aligning with the broader bearish structure. If price invalidates the setup by moving above 23,504, we will reassess the trade idea accordingly.
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.
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.