Shorts into the potential buysHello traders,
A potential ''simple'' play is shaping up on GER40.
It doesn't mean when PA tapped into a new ATH and sells of, its meant to be the top.
However, PA made a huge inpulse and right now it's forming its larger correction before the potential next leg to the upside.
PA is forming an expanding right now.
- Weekly bullish pinbar close (still bullish but positioned well)
- Daily retraced quite well (engulfing --> evening star formation)
- 4H is clear (impulsive move)
-1H --> entry plan: looking for a clear 3-touch continuation into the previous ''marked'' lows that has been broken.
Targeting the first point of inflection at minimum with a potential to the value area.
I've used the fibonacci as a guidance, never as a confluence factor.
However, it's healthy to give a .50 pullback after such rally
GERMANY40 trade ideas
DAX breaking above this Resistance can target 20000DAX hit yesterday Resistance 1 (the September 03 High) but got rejected and failed to close the candle above it. Naturally, the market is reacting with weakness today and so far a red 1D candle.
As you realize, the key here is to close that candle above Resistance 1, which is what happened in the middle of the previous Bullish Leg of the 1-year Channel Up. After testing the Resistance at the time on January 29 2024, the index turned sideways for a few days, until it finally closed above it and started the 2nd phase of the Bullish Leg.
All this time the 1D MA50 (blue trend-line) was supporting, just as it did recently on September 06. If those conditions are met, we expect another run towards the 1.618 Fibonacci extension (where the April 01 Higher High was priced). Our Target is slightly below it at 20000.
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DAX H4 | Potential bullish bounce off overlap supportDAX (GER30) is falling towards an overlap support and could potentially bounce off this level to climb higher.
Buy entry is at 18,652.31 which is an overlap support that aligns with the 38.2% Fibonacci retracement level.
Stop loss is at 18,500.00 which is a level that sits under the 50.0% Fibonacci retracement level and an overlap support.
Take profit is at 18,972.46 which is a swing-high resistance.
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DAX: Aggressive uptrend for the rest of the year.DAX maintains a very healthy bullish 1D technical outlook (RSI = 60.112, MACD = 108.800, ADX = 23.465) as it is extending a rebound aon the 1D MA50, after an August 5th rebound on the 1D MA200 as well. Successive holds of those levels suggest that the index has already started the new Bullish Wave of the 2022 Channel Up. We can target at least the 2.0 Fibonacci level (TP = 20,250) as it was the level that priced the last HH.
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Germany DAX30 buy analysisAs the price didn't react to the area of value in 1H TF, So I think it is possible that the price come down again to touch our entry but it should NOT close below the low.
I'm waiting for a lower candle shadow that trigger our entry and then go up again.
we can set an order or wait for price to come to our zone and then look for a CHoCH in lower TF and then find an entry with more confidence.
Let's see what happens...
Long trade
Trade Setup:
Buy-side trade on DE30EUR (DAX)
Entry Price: 18,517.0
Profit Level: 18,923.7 (2.20%)
Stop Loss Level: 18,341.6 (0.95%)
Risk-Reward Ratio (RR): 2.31
Key factors supporting this trade include positive economic data from Germany and the Eurozone and technical indicators that point toward bullish momentum.
Dax Long position setupWe had a BOS to the down and then a CHoCH to the top.
Now we have to wait for a pullback, and I think this area has its potential to set an order.
This setup is in 4H TF, so also we can wait for the price to come into our area of interest and then wait for a CHoCH in lower TF like 15m TF and then find another entry zone...