DAX is setting up a huge bearish third downside wave
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DAX is rejected from the interim 14500 top in the second of five downside impulsive waves. By definition in theory and practical trading, a third wave is the longest and the most violent and is offering the highest huge profitability probability. The DAX downside swing so far is the smallest in the percentage of all the major market indices, so the expectations of 2500 and more point moves are high, and this is now the right timing for it.
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The weekly chart shows a clear rejection zone and a reversal from the falling trend line. Also, we can see that a third downside wave is just beginning and is bearish against 14500. A break below 14000 next week will lead to acceleration lower and make the third downside wave begin and extend much lower.
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On a daily chart, we can see a good RR trade opportunity Already a member? This article is so good, it’s for premium members only.
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We have used the combination of the top-down trading analysis to get these critical levels explained in the charts. Also, you can see Elliott Wave and price action analysis together in action along with the Andrews Pitchfork channel tool. If you want to learn the trading strategy that will give you immediate results in your trading register for Trader’s classroom.
