Today’s analysis is coming from the DAX market. This is not going to be a trading idea, but more like an analysis of what happened in the previous two trading sessions. First of all, this trading signal coincided with the ECB decision. There was the necessary fundamental ignition that is sometimes so important for the buyers to rush in big groups. That is what happened last week. In the following few charts, the I will dissect the price action into its parts- starting from Daily and going down to 15 minute charts. Let’s enjoy this pure winner and be open for new ones in the coming week.
We can see the pure price action on the Daily chart above. The DAX trading signal , that I gave last week turned into an over 600+ gainer. The H4 chart below shows a more detailed retrospective of this move:
I was looking into the H4 chart and waiting for the price to come down to the resistance area (turned support) and then show me a price indication of bullish bias. As, I have outlined in my course, once this indication was shown, I did enter and then scaled in from the lower time frames a few times (again- as indicated in my trading course). Let’s have a look at the 60 Minute chart now:
On this 60 Minute chart, you can see the same levels and entry point (as the ones indicated on the higher time frames). There are two double engulfing patterns, which give me the necessary indication that the bullish action is imminent. As can be seen further, I was right to assume so. The last chart is showing the 15 Minute chart, which gives us even further confirmation and precision in the entry (for the most aggressive ones amongst you):
On this chart, you can see one last rejection, where the long entry should be placed. From here on, it only depends on you how much you are going to be able to ride this trend. From my side- I managed to ride this trade up to the level of 10,550 initially. The second day of the rally, I managed to get another 2 long entries and in total I got out more pips from this move than the move itself with my scale-in method.