DAX looking to continue the down trend for at least the short term.
SPX also starting to roll as global indices start to sell off.
- Daily – Below 50
- Daily – Targeting or 200
- Below 50
- Below 200
- for break out
Support – 12680, 12535
Resistance – 50 , 200 , 12795
Optimal entry provides the greatest reward to risk ratio while supporting entry is a zone for reversal signals.
Optimal Entry – 12770
Supporting Entry – 12750 – Break of flag
Candle Reversals for entry
- Dark Cloud Cover
As traders, it is your job to mitigate the risk and only trade structures that provide high probability and great reward to risk ratios.
If you are not comfortable with defined exit levels, experiment with Moving Averages to help set solid exit rules to protect your capital.
IF: Price breaks above 12851 and violates 50 – this would suggest the structure is not in our favour and would be wise to reduce exposure or close the trade until a solid signal gives us reasons to re-enter.
Reward / Reward Targets:
Optimal Entry 12770 – Target 1 12795 = 3x Reward to Risk
Supporting Entry 12750 – Target 1 12795 = 2.5x Reward to Risk