Dear Price Action Traders
The last price action trading idea was going long GBP/USD at 1.5258. It has turned out to be a great trade and currently all of you riding this trade should be around 400 pips in profit, unless you took profit at the second price target at 1.5600. As I usually say, that is the beauty of price action trading– clear movements! Cutting losers fast and letting winners run- that is the second most important rule.
Today I am looking at the DAX. There is a clear indication of further buying pressure. A few sessions back in time, you can see a pin bar. Today, there is a small bearish rejection and a bullish engulfing-like pattern. The price has jumped up from the level of 11,200 nicely. That is another confirmation that we are about to see more buyers joining the bullish momentum.
I will be looking to enter into a long trade at around 11,570. My stop loss would be placed just under 11,350. The primary price target is the level of 12,000. The secondary price target is the level of 12,400. Then it all depends on price action.