DAX (Germany 30) Trading Analysis

 

@Colibritrader

Dear traders,

It has been a while since I last posted a trading-related article.

Last time I wrote about DAX, as well!

This time the instrument won’t be different. I did share with you today on my Twitter page a possible trading scenario, which was contrary to what I am going to share now.

I was looking for a potential confirmation of the minor demand zone.

I was waiting for a close on the 4H chart, but such did not happen. In fact, there was a rejection (inverted pin bar) that resulted in a quick reversal.

That is another reason why I put so much emphasis on waiting for the close of the candle.

I have zoomed out and increased from 4H to a Daily chart only to find out that there is a three-day bearish engulfing pattern.

This bodes well for the bears. There is a major supply zone that is just around the current level of the price.

What I will be looking for is:

  1. Either a confirmation from the 4H chart to go short during tomorrow’s session
  2. Or bull trap that might make us see a new high and then more sellers joining the queue

Until that happens (and if that happens), I will be patiently waiting and never trying to predict where the market might go.

Happy Trading,

Colibri Trader

 

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