So it's been a crazy week for the stock markets around the world and everyone's trying to point the blame at something.
Whatever the reason you believe don't let it justify your reasoning for entering a trade, enter only on what you see not what you hear! I can't stress this enough!
So many traders are throwing money into the market trying to catch falling knives and others are selling like crazy because they think this is the market crashing. It may very well be, but taking today for a great example a lot of people probably sold on the premise that "oh its a crash it'll only go down from here" well those traders got burned.
In these times it's better to trust your analysis overall as it will tell you only one story compared to the numerous rumors floating around at the minute.
Anyway... Today DAX was short of hitting the first key support Trendline @ around 9300, a break of this TL and to me the market crash will continue with 7450 being the overall target before things level out.
Expecting DAX to perhaps test this area again before ranging between the key TL and the Inner and or outer TL's
Daily/Weekly/Monthly MA's are all to the downside, so I will be anticipating the retest sooner rather than later before they cross to the upside (If this happens) Long positions won't be taken in the mean time.
I am short from Inner and or Outer TL's if PA gives me reason to enter
whereas I am Long if PA retests the first key support TL and it holds
If price makes it back to 11200-300 this could be a key turning point highlighted by Fib level, Resistance zone as well as Outer TL - strong sell area - if price breaks the Outer TL it may fail to surpass the aforementioned zone, creating a pool of long positions made by breakout traders who have been sucked into entering.
Officially however despite the market drama at the moment as long as price remains above the key TL support we are still in an uptrend, a convincing break of the Counter Trend Line aka Outer TL will confirm the market will remain bullish.
There are a lot of opportunities arising at the moment, it is our job to cherry pick the best ones! Don't let outside noise influence your trading decisions. Thanks
Happy Trading!
Chartster.
Whatever the reason you believe don't let it justify your reasoning for entering a trade, enter only on what you see not what you hear! I can't stress this enough!
So many traders are throwing money into the market trying to catch falling knives and others are selling like crazy because they think this is the market crashing. It may very well be, but taking today for a great example a lot of people probably sold on the premise that "oh its a crash it'll only go down from here" well those traders got burned.
In these times it's better to trust your analysis overall as it will tell you only one story compared to the numerous rumors floating around at the minute.
Anyway... Today DAX was short of hitting the first key support Trendline @ around 9300, a break of this TL and to me the market crash will continue with 7450 being the overall target before things level out.
Expecting DAX to perhaps test this area again before ranging between the key TL and the Inner and or outer TL's
Daily/Weekly/Monthly MA's are all to the downside, so I will be anticipating the retest sooner rather than later before they cross to the upside (If this happens) Long positions won't be taken in the mean time.
I am short from Inner and or Outer TL's if PA gives me reason to enter
whereas I am Long if PA retests the first key support TL and it holds
If price makes it back to 11200-300 this could be a key turning point highlighted by Fib level, Resistance zone as well as Outer TL - strong sell area - if price breaks the Outer TL it may fail to surpass the aforementioned zone, creating a pool of long positions made by breakout traders who have been sucked into entering.
Officially however despite the market drama at the moment as long as price remains above the key TL support we are still in an uptrend, a convincing break of the Counter Trend Line aka Outer TL will confirm the market will remain bullish.
There are a lot of opportunities arising at the moment, it is our job to cherry pick the best ones! Don't let outside noise influence your trading decisions. Thanks
Happy Trading!
Chartster.