When Dax drops through the last valid "2" (red 1-2-3 counting), the next downwave can be exspected. The Signal is a very strong signal because it is supported of the SMA200 (used as a longterm sell trigger) which also is based at the same Level.
The Index has reached the bottom edge of its midterm uptrend since 11.02.2016. At this niveau some buyers joined in the game and the result is, that the index closed 3 days in a row positive.
The shortterm downtrend (10.470-9.730) is still dominant. The Chart will brighten with Prices above 10.200 (above the maximum correction Level, the 61,8 fibo-retracement @ 10.200) Here is also based the 200 as a longterm buying Trigger. If the market could Close above this , i exspect a further upmove to 10.490.On this way up, several resistance zones appear: The fibo retracements 38,2= 10.000 / 0,5 fibo = 10.110/ 61,8% = 10.200.
Should this Szenario get real we perhaps could see a nice 1-2-3 long-setup these days. The reqirement for this Long Setup is, that the index has to Close sustainable above it s 61,8 fibo @ 10.200 and has to cross the last valid "2".
Alternative Szenario: Stoppsell below the last Low at 9.730 with SL @ 10.000 and TP1=9400 / TP2=8800
You just know wave-countings? Never heared of 1-2-3 counting Then please have a look at