Germany 30 (DAX) Trading Analysis
It is Sunday.
I am going over some past trades and analysing a few charts from last week.
On Friday, I was waiting for a possible rejection on DAX on the 4H chart.
I shared with you my observations in this Tweet:
I have been waiting for a rejection at either the minor or the major resistance levels.
Since I shared with you my belief about the current market environment and that DAX (as well as US indices) might be in the beginning of a bearish market, I am looking for more bearish confirmations than bullish ones.
The candlestick that formed on the Daily chart of DAX on Friday was a inverted pin bar. It usually bodes well for short-sellers.
It formed just below the minor resistance level, as well!
I would like ideally to see such a pattern occurring around a major support level, as the level of 11,800 is.
Therefore, I am not going to rush into a trade straight away. I will continue monitoring DAX at the open and decide if there is a reasonable opportunity to go short or to just wait a little bit longer.
In the end, what makes the money is the sitting and waiting.
Since I am not in a rush, I have all the time in the world to wait until all the stars align in the right direction…
…and so you should, too!