In this article, we want to give you a “heads up” on the DAX.
The instrument has formed a famous Harmonic bullish Gartley pattern on a daily chart.
The Gartley pattern is one of the most traded harmonic patterns. Retracement and continuation pattern that occurs when a trend temporarily reverses direction before continuing on its original course.
It gives you a low risk opportunity to enter the market where the pattern completes and the trend resumes.
Rules for the Gartley pattern
Before you try and trade the pattern, make sure that the following rules are met:
The AB=CD pattern
A 78.6% Fibonacci retracement of the X-A leg
A 127% or 161.8% Fibonacci extension of the B-C leg
How to trade this pattern? Since the instrument has reached the 78.6% Fibonacci retracement of the X-A leg this is the zone for the market entry as it is shown on the chart. The stop loss should be below the 11911Â level. The take profit target should be at least 50% Fibonacci retracement of the 11600-13200 X-A range.
By using our top-down trading technical analysis we have identified the key levels which will be triggers for the entry and exit, based on the present market conditions of the instrument. This analysis has been brought to you by Motive Wave platform.
Happy trading! (click on the chart to enlarge it)
Through time we have developed a very respectable trading strategy which defines Entry, Stop loss and Take Profit levels with high accuracy and allows you to make position risk free. We are publishing daily and weekly analysis and 5-10 trade alerts per week directly on your mobile device via Private twitter feed and Private Telegram group!
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