Hi Traders! We have Dax bearish opportunity forming at the moment. A detailed analysis of this sell setup is as follows:
Dax D1 Chart:
On the daily chart currently it looks like the price is creating a potential double wave down and price has room lower towards the critical level. We may now look for bearish setups with bearish evidences on lower timeframes in order to join the bears.
Dax H4 Chart:
On the H4 chart we have a special cycle that has completed itself. Currently a retrace is happening in the form of double wave up and the price has reached a critical zone formed by the 100% fibo expansion level and 61.8% fibo retrace level of the cycles we have. We also have a potential bearish divergence that is forming at the moment which we may consider as an evidence of bearish pressure. Until this critical zone holds we may look for bearish setups with bearish evidences in order to start looking for the sells.
Dax H1 Chart:
On the H1 chart the price has reached a critical level formed by the fibo levels of the cycles we have, this critical level coincides with the H4 critical zone. In addition to this we also have a bearish divergence that has formed which we may consider as an evidence of bearish pressure. We may now start looking for sells with more bearish evidences.
Invalidation: If the price breaks and holds above the H4 critical zone then this sell setup will be invalidated (false breaks can be neglected).
Note: It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.
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