this is my analysis for CURRENCYCOM:DE30 and the way I will operate.
Post your idea/analysis below for discussion.
Thank you all for your support.
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this is a short as in it really near all time high and soon going to break because of global reasoner that are going in the upcoming time.
in a bigger picture it is following a very high push upwards so might as well go for another high records but it closely follows Dow. the new York exchange and hence can be highly volatile due to the pandemic .
There is no secret that we all have good and BAD trades.
Dax was my BAD trade last month.. Tried to get it once, tried to get it twice, it was just not listening to me.
So what do we do in these cases?
What is the secret to surviving in the markets?
Well the answer to both questions is ' FORGET ABOUT THAT ASSET FOR A WHILE' and trade something else.
After reaching my 11500 target, the German index had a false break under support and reversed.
Now is trading exactly in resistance (12500) which is also the neck-line support of H&S.
A new leg down is probable from this point and also we can have a great R:R if the index is retesting 11500 zone
Very volatile last 48 hours because of US elections. US indices rose massively and DAX followed.
Fundamental is stronger than technical but now we will gradually see technical analysis take over again.
Find on our chart the next resistance level and remember to trade carefully these days.
FIRST~: PLEASE CHECK YESTERDAY'S IDEA
So, the chart never lies: the resistance level we had calculated acted perfectly , as the price dropped as soon as it was checked.
Our stop loss is now at entry point and we are expecting to see (hopefully) the drop further down.
Most importantly: DO YOU HAVE A TRADING STRATEGY?
Drawing a chart is part of the success but...
My 11500 target was hit and now the German index is consolidating just above this support.
A correction from this point is not out of the question but with EU imminent lockdown I expect this to be short-lived and a new leg down is just around the corner.
12k zone is a great place to sell Dax30 and a target of 10k for swing traders is very probable