Dax has been acting rather harmonic lately and now we've got another Butterfly completed on the 4h, while a beautiful bullish Wolfe Wave is in play. I'm still expecting a much larger correction in the long term, but I think we could see a nice run from around here or the bigger daily AB=CB at the fake out in daily + weekly demand, before bears eventually takes...
I'm thinking it's quite possible we're gonna see a long torm top in this area, but for now we have a range set up with bullish harmonics pointing to it's lows. I will be watching this for clues to a possible higher time frame trend reversal.
Just a rough sketch with some areas/lines I'll be watching to complement eventual setups on the lower TF's. The time element will of course have a big influence. It's nice how the MA's seems to line up with these energy points.
Ideal AB=CD (precise 0.618 -> 1.618) (possible Bat a bit higher) to WW completion. Looking for a move down to the 59 area at least.
Some great details about this Wolfe Wave: The 1-4 target line has the same slope as the blue downsloping fork. The 2-4 line exactly the same as the steepest upsloping black fork. The 1-3 line the same as the turquoise upsloping fork...
Bullish bat completed. A close above EMA 8 or the trendline seems like a reasonable entry trigger. Alternatively a trade above last minor swing high.
AB=CD, Gartley or Butterfly also possible below. Only looking to catch a bounce equal to the BC leg of this bat. NB. long term down trend!
/edit: This 15 min bear bat might offer an opportunity to get in if it...
B didn't quite touch the .786, but it sure seems to be reaction to this level. A 1h close below the could confirm a pullback at least.
DAX 30 min shark pattern:
DOW testing the daily downsloping pitchfork top for the first time + the upsloping medianline:
DAX overshot the downsloping pitchfork and turned at the 2.75 warning line at both the bottom and the top and is now returning to test the original upper median line from above. At the exact same level we got the completion of a bullish 5-0 pattern and a Shark. This should be a strong area of support.
Down sloping median line
Up sloping 2.0 warning line
Long term trendline
Old gap level
Several other fibs (not shown)
All coming together at one precise level in time and price! I don't think the market will move down fast enough to reach it in time, but you never know.
DAX is in the area of a big two tier channel / fork bottom. Blow out...
Big ab=cd ending right at bullish Shark completion. If this pattern is succesful, I would be looking for a 50% upwards retracement right to a bearish 5-0 pattern around the middle of the channel.
Just something to watch for. It's tough terrain these days, who knows what'll happen!?
The old bear bat: