MVedra

Bearish Signal on DAX = SHORT

Short
TVC:DEU40   GERMAN STOCK INDEX (DAX)
78 views
1
dax
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.
Trade closed: stop reached: Right call, wrong sizing! The trade stop was perhaps too tight at 12160 although the direction was accurate.