Bearish Divergence using the 14 Day RSI to highlight price making higher highs with declining momentum. Ok it would have been early (ie wrong) to call this on the 26th January, and again on the 22nd February, but that only supports this bearish view even more (... path dependency is everything!).
Risk position: Short DAX with a stop at 12160. 12160 should be enough to avoid the probable re-touching of 12100 and to be careful the next psychological level of 12150. 90 point risk.
Risk position: Short DAX with a stop at 12160. 12160 should be enough to avoid the probable re-touching of 12100 and to be careful the next psychological level of 12150. 90 point risk.
Trade closed: stop reached:
Right call, wrong sizing! The trade stop was perhaps too tight at 12160 although the direction was accurate.
