Dear Price Action Traders
The past few signals that price action generated were quite powerful. The price action signal from last week was a long GBP/JPY and it is still not showing signs of exhaustion. It has surpassed the second price target of 190.00 and there is not much hesitance coming from buyers. On the other side, I have been stopped on the signal from last time- DAX.
Today’s price action signal is coming from DAX again. I am seeing a more rare formation- inside day. Today’s candle is entirely engulfed by yesterday’s candle. This signals that the prevailing trend, or in other words the uptrend might continue in the following sessions. We just need to be extremely careful, because there has been some choppiness in this market recently. Anyway, I will be waiting for a small retracement and then will try to go long at a previous support level of 11,715. My stop-loss for this trade would be the level of 11,580. The first price target will be the level of 11,900. The second one is going to be the psychological barrier of 12,000. In the end, it will all come to price action to decide whether to hold our positions or cut them.