TVC:DEU40 GERMAN STOCK INDEX (DAX)
Step by step analysis provided in the chart. Following the high made in April 2015 to the low made in February 2016 there appeared to be an area of low , which now has successfully been filled up to the level. Back testing this idex shows its sensitivity towards this '61.8' level. To make things more convincing, this level is also lining up with a weekly breaker. To minimize risk and maximize R:R, stops will be placed above last weeks high at 10803. Should the up-coming week not break the high, this will also form a PO3 giving the short even more confluence.