GER30: Technical analysis review part 3

FX:GER30   DAX Index
358 0 5
This is a fantastic example of a bullish AB=CD pattern inside Bearish 5-0 structure that possessed the ideal Fibonacci Channel alignment to validate the pattern. Find more about this partern here: http://www.harmonictrader.com/The5-0Pattern.pdf
Using AB=CD parterns, traders feel more confident to counter trend with a very limited risk.
About 1-2-3-4 label, there is a helpful explain about support becomes resistance: http://www.investopedia.com/articles/trading/06/supportresistancereversal.asp
Looking closer to minor structure, It is coincident that fib channel lines also act as supports and resistances, so why is that? some believe because of market psychology, people like placing trade at these levels (trigger buy stop, sell limit)... maybe so.

Comment: Global market meltdown leads to sell-off stock may continue, but now I stay aside and start looking for some potential stocks to hold.

Note: TA analysis on chart.
Thank you for your reading
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out