☝️ DAX30 Creates 4H Triangle in Weekly Triangle ☝

3 min read

Hi traders,

The German index DAX30 is moving higher but the triangle pattern remains key and a bearish bounce is still expected at the resistance trend line (red) to confirm wave D (pink).

DAX30

Week


The DAX is, however, eventually expected to make a bullish break after completing wave D and E, which would finish wave 4 (purple) and start wave 5. The triangle pattern is invalidated if price were to break below the bottom of wave A (purple). A bullish break above the resistance trend line could kick start impulsive price action that can lead to a new high and thereby complete a wave 5. A bearish correction is then expected.

Day


The DAX index is probably in the wave C (purple) of wave D (pink). A break above the 100% Fib means that price is not in a wave D and could be building a bullish breakout but a bearish bounce could confirm this triangle pattern. In that case, a bearish ABC is expected within wave E to complete the triangle pattern (without breaking the bottom of wave C).

4 hours


The wave patterns are not that clear on the 4 hour chart but price could be building an extended WXY (purple) correction after completing a first ABC (blue) within wave W (purple). Price could now be building one more ABC (blue) but the breakout above resistance (red) or below support (green) remains key for the next swing.

Good trading,
Chris Svorcik
Elite CurrenSea

Leave a Reply

avatar

This site uses Akismet to reduce spam. Learn how your comment data is processed.

  Subscribe  
Notify of

🍿️ Discover your path to a 100% yearly returns over the convos with Chris Svorcik!

X