Germany 30 Trading Analysis 01.11.2020
Dear traders,
Last time I shared with you a trading idea, it was about GBPUSD.
It has gone up around 200 pips then there was an inside bar on the daily chart and price went down.
It has been a great example of how the inside bar attracts more buyers in an uptrend.
It was also a great example of a risk:reward ratio.
The inside bar is one of my favourite continuation candlestick patterns for 2 major reasons:
- Its reliability
- The great risk:reward ratio it offers
This is probably the best price action pattern when it comes to returns.
The reason why this candlestick pattern is having such a great risk:reward ratio is because the close of the small bodied red candle is very close to the low of the green candle.
This allows for a tighter stop loss and therefore a higher risk:reward ratio.
In layman’s terms this means that you can risk less money to gain more profits.
But enough on that.
If you want to read more about the inside bar, you can check out my article on INSIDE BAR.
Germany 30 Trading Analysis 01.11.2020
Today, I am looking at the Germany 30 chart.
There is a major demand zone and price has printed a pin bar on the daily chart.
These are both signs of a reversal.
Having said that, I will be looking for a confirmation from the 4H chart in the next trading sessions.
If this is a major bullish continuation, we might see the price going back up to 13300 and even higher.
It is only a matter of time before we witness that.
For now, the most important thing is to:
- Have a 4H confirmation
- Find a good entry opportunity
One very important thing to consider is the US Presidential Election on the 3rd of November.
So, be extremely careful in the next trading week.
Markets will be more turbulent than usual.
Happy Sunday,
Colibri Trader