Today i spotted a good setup on DAX / GER30 indicies.
After marking all the potential support and resistance, i found that price currently on support level. Price go down aggresively since 12600 to 11600. It goes down 1000 pips in just 3 days.
We could see price retrace back up to close the gap before continue south.
Buy DAX / GER30 at 11600 Stop loss at 11400 Take profit 1 at 12000 (2R) Take profit 2 at 12500 (4.5R)
Hello, im kinda new in trading and I want to ask you. Why should it close the gap? I mean, why it is needed? Also I want to know your opinion, im holding my buy on it, what do you think? will it come to 12000 tommorow? or it will continue to go down?
HayatoDragonFX
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@mateibadoiu6, hello my friend, gap usually occurs when there is a panic on the market. this gap usually will be closed as there is unfulfilled orders that need to be fulfilled.
The problem is we don't know when will be the gap closed as it could take time. Whether it will be quick or late, nobody knows.
Just manage your risk and you will be fine