MASSIVE BEARISH ABCD Harmonic Pattern in DAX30
Hello everyone,
I spotted this MASSIVE ABCD harmonic pattern in the German DAX30, and wanted to share a few details about my current DAX 30 short trade.
in order for you to understand what I am talking about I added this snapshot of the whole ABCD structure:
(TMF: Daily)
The retracements/extensions:
As you can see, the B-C move retraced exactly as far as 0.382 of the A-B move.
While the C-D move extends as far as 2.272 of the initial B-C retracement.
While 2.272 is a very uncommon extention number for C-D moves, it still is a valid number, and I consider it worth a try.
In order to confirm the potential mega-short chance, I took a look at the RSI and spotted a huge divergence in both, the 24h and 72h timeframes.
RSI settings: standard except the range, which is set to (8):
About the actual trade:
My stop is set slightly above the most recent high, as we may still see a recovery and I don't want the trade to immediately get stopped out.
In terms of profit taking:
I attached a FIB retracement from D to C, and each of the displayed Fibonacci numbers will be partial take profit levels. My final take profit is sitting on 1.618.
If any of that actually came true, then, yes, this would be yet another historical mega-crash of even greater scale than the 'Corona-Crash'.
Feel free to comment your opinion or to hit me up and share your current analysis if you disagree :)
I spotted this MASSIVE ABCD harmonic pattern in the German DAX30, and wanted to share a few details about my current DAX 30 short trade.
in order for you to understand what I am talking about I added this snapshot of the whole ABCD structure:
(TMF: Daily)
The retracements/extensions:
As you can see, the B-C move retraced exactly as far as 0.382 of the A-B move.
While the C-D move extends as far as 2.272 of the initial B-C retracement.
While 2.272 is a very uncommon extention number for C-D moves, it still is a valid number, and I consider it worth a try.
In order to confirm the potential mega-short chance, I took a look at the RSI and spotted a huge divergence in both, the 24h and 72h timeframes.
RSI settings: standard except the range, which is set to (8):
About the actual trade:
My stop is set slightly above the most recent high, as we may still see a recovery and I don't want the trade to immediately get stopped out.
In terms of profit taking:
I attached a FIB retracement from D to C, and each of the displayed Fibonacci numbers will be partial take profit levels. My final take profit is sitting on 1.618.
If any of that actually came true, then, yes, this would be yet another historical mega-crash of even greater scale than the 'Corona-Crash'.
Feel free to comment your opinion or to hit me up and share your current analysis if you disagree :)