Dear Price Action Traders
The price action signals from the last few times have played out really great. Unfortunately, I couldn’t post an article yesterday, because I have been away from the screens, but there were a couple of great signals coming from the DAX and the GBP/USD. They were both pin bar-like signals and were extremely successful. You can have a look at the daily charts.
Today’s trading signal is coming from DAX and it is a bullish-engulfing pattern. I believe that after the last correction, DAX has finally found a support level and is bouncing back, continuing the long-term trend. The support level is the psychological level of 11,000 and also a previous support level. The pin bar from yesterday played out really well and gave way to a lot of buyers. Today’s candle is a bullish-engulfing. It is engulfing three red candles as you can see from the screenshot. This is giving further confirmation and the bullish bias is returning to the market.
My entry point for this price action signal is a long at: 11,150. The stop is below the level of 11,850. The first price target is at 11,700 and then 12,000.
Happy Trading,
Colibri Trader