A nice bearish
setup has formed here in Dax
. Price is in a corrective structure having already formed an abcde pattern. E point has formed where price is testing a long term resistance level
( black trendline
) and a short term resistance ( the upper trnedline of a rising channel
, the purpple one in the chart).
A nice way to trade this setup is to move to a lower timefreme and wait for d-e leg breakout with our stoploss above e point.
Here's how to enter the market: