Sometimes I really love trading patterns. Even though my last trading idea was a flop and I had to close it manually (what happend: the SHS (4H) consolidated into the upward trendline). At the end it turned out to be a bear trap; my gut feeling avoided losses and I was able to make a least some profits with my 50% position. Nevertheless, it was a flop.
What we see now is just a very typical behaviour in the DAX (just my personal opinion). The market is not sure where to head so we a forming a trumpet (4H). It is still a very small one, but we have seen this before. Most of the time bears take over. But it is too early to move short right now. I guess the market tries to move up to 12.850 and then they gonna wait for the news about the EUR 750 bn EU reconstruction plan. Hence the 17./18. of July will be key for the DAX in order to decide if we move above the 12.850 or if we move back to 12.200.
Since for the time being it is not sure that a compromise will be reached already on the 17./18.07. we might gonna face some volatility next week. Hence, we gonna have some really nice trading opportunities. But I would stay in the range of the trumpet. If we break substantially above, I wouldn't be surprised if this would be a fake breakout.
I hope you gonna love my thoughts about the DAX, if so, leave a like if not, leave a comment :)
Take care!
What we see now is just a very typical behaviour in the DAX (just my personal opinion). The market is not sure where to head so we a forming a trumpet (4H). It is still a very small one, but we have seen this before. Most of the time bears take over. But it is too early to move short right now. I guess the market tries to move up to 12.850 and then they gonna wait for the news about the EUR 750 bn EU reconstruction plan. Hence the 17./18. of July will be key for the DAX in order to decide if we move above the 12.850 or if we move back to 12.200.
Since for the time being it is not sure that a compromise will be reached already on the 17./18.07. we might gonna face some volatility next week. Hence, we gonna have some really nice trading opportunities. But I would stay in the range of the trumpet. If we break substantially above, I wouldn't be surprised if this would be a fake breakout.
I hope you gonna love my thoughts about the DAX, if so, leave a like if not, leave a comment :)
Take care!
Comment:
We might now look for support around 12530 or test the lower end of the trumpet 12300.
Trade active
Trade closed: target reached
Trade active:
This time: Short 1/2 position. High risk this one. If we get the 750 bn stimulus this trade would be stopped out.
Comment:
Time to buy the other 1/2 position.
Comment:
I am cashing in the 300 points from the second short. First short is now a B/E. I move SL above 13100. The trade give me now 200 points with 1/2 position or if you like 100 points with full position. If we move to 12850. The trade would provide 225 with full position, which would be OK.
Trade closed: target reached:
I label this one with target reached. From here I use the Autopilot ;)
Comment:
I closed the trade around 12800. I made 250 points in the full position. I hope you enjoyed the trade :)