DAX (Germany 30) Trading Setup

by: Colibri Trader

Dear Traders,

It is Sunday and I am looking at the charts, preparing the week ahead. So far, last weeks’ trade has not given a very clear indication of direction. EURUSD went up 40 pips, then down back to the support area at 1.1180 and my stop loss is getting closer. At the time of writing that I was more optimistic than now. It looks like we might see a drop towards the next support zone at 1.1100. Let’s see if the closest support area will hold, otherwise I will have my stop reached.

DAX (Germany 30) Trading Setup

Today’s trading setup is coming from the DAX (Germany 30). It looks like we are in a correction mode, but this correction might have come to an end. I had my eyes on DAX short setup last week. As I have shared with some of my followers on Twitter, there was enough evidence for me to see this instrument overpriced and in a bearish mood. Unfortunately, Friday was a rejection day and ended up with a pinbar on the Daily. The level on which this pinbar formed was 12,550. It is a minor support area at the same time and acts as a buffer for the short-sellers. I have closed my short positions and now re-considering entering on the other side. Sometimes, the best quality of a traders is the ability to quickly change direction if the market is showing evidence for that. I will probably be looking for a retracement towards 12,580 before going long. A good place for a stop would be just under 12,480. My first target would be the level of 12,700. Second and third targets will be 12,840 and 13,000 respectively.

Happy Trading,

Colibri Trader

p.s.

Don’t forget to check out my last article on How Depeche Mode Relates to Trading

or Two Great Trades I Took Recently

and of course, if you want to get the same charts as I am using, you can register HERE for free. For anything else, e-mail me at: [email protected]