DAX 40 Futures<\/h2>\n\n\n\nThe Weekly<\/em> DAX chart<\/h3>\n\n\n\n![\"DAX](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/04\/Dax-40-Weekly-Low-1-at-Top-of-a-Bear-Channel-680x385.png\" "\\"\\"")
<\/a>Dax 40 Weekly – Low 1 at Top of a Bear Channel<\/figcaption><\/figure>\n\n\n\n- The DAX 40 Weekly candle<\/a> was a bear bar triggering a low 1 sell at the 100-week MA and top of a broad bear channel.<\/li>
- The bulls see the first pullback from a reversal up from the 200-week moving average and finding support above the pre-COVID highs at 14000.\u00a0They see their longer-term trend intact<\/li>
- The bears see an 8 bear-bar, tight bear channel breakout from a 12-month trading range and pullback to the bear channel line for a continuation down and possible second leg. <\/li>
- It is a reasonable sell signal because we failed to close back in the trading range and have rejected the 100-week moving average for 4 weeks in a row. <\/li>
- For the bears it’s a low 1 sell but it has a tail on the bottom so it\u2019s not as bearish as it could be. They want a follow-through bear bar to confirm a possible second leg at least down to the March lows.<\/li>
- Tails on the top and bottom mean traders are trading with limit orders and expect breakouts to fail and go sideways which is reasonable to expect next week.<\/li>
- If you’re flat you can get short below a good bear bar or look to sell higher betting on sellers above.<\/li>
- If you’re short you can look to add on once there is a reasonable bear close – but if you look left none of the bears did that until the sell climax.<\/li>
- If you’re long you can look to get out below a bear bar next week and buy back lower above a bull bar and a likely double bottom.<\/li>
- If you’re buying above, we need a weekly bull close above these tails which is maybe 40%. It is more reasonable the bulls buy lower for a second entry, possible double bottom anywhere around 14000, to move back up to the highs of the range.<\/li><\/ul>\n\n\n\n
The Daily<\/em> DAX chart<\/h3>\n\n\n\n![\"DAX](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/04\/Dax-40-Daily-Tight-Trading-Range-at-Midpoint-of-Prior-Move-680x380.png\" "\\"\\"")
<\/a>Dax 40 Daily – Tight Trading Range at Midpoint of Prior Move<\/figcaption><\/figure>\n\n\n\n- The DAX 40 on Friday was a doji bar closing below the 20-day MA.<\/li>
- We traded lower than last week and Tuesday and Wednesday were consecutive bear bars closing below their midpoints. <\/li>
- It is the second week in a row the bears got consecutive bear bars closing on their lows – is it always in short, or two legs sideways to down after a tight bull channel before resumption.<\/li>
- The bulls see two legs sideways to down after 3 pushes up in a tight bull channel transitioning into a broad bull channel. They expect the pullback to be minor and will look to scale in lower with a high 2 near the moving average. We might get this next week.<\/li>
- Thursday was the first moving average gap bar in 2 weeks so it is also a reasonable buy signal. But because Friday only touched but closed below the moving average, it might need to move lower to attract buyers. Likely sideways to down next week.<\/li>
- The bears see the first pullback to the topside of the broad bear channel for a measured move down. Traders will expect 2 legs sideways to down after the wedge reversal, this might be considered the start of the longer 2nd<\/sup> leg of the prior sell climax.<\/li>
- Who is right? This is what happens in a trading range, reasonable buy and sell signals so it’s likely we will reverse until we get strong closes in either direction.<\/li>
- If the bears can close below Wednesday and stay below the moving average then it is reasonable we are always in short, and a strong weekly close would continue the second leg down to at least the March lows.\u00a0We might drop faster than Will Smith out of the Academy.<\/li>
- If the bulls can breakout above Friday and trigger a high 1 buy, or buy below daily closes next week, it might convince bulls we can get back up with a second leg into the range above. Reasonably positive European war news might move Dax back up into the range.<\/li>
- Because we have the underside of the prior trading range breakout as resistance it reasonable to buy below betting that 80% of breakouts fail.<\/li>
- If you’re flat you can look to buy above the MA with a stop above Tuesday betting if we get there we are likely to move higher, it would be a high 1 on the weekly up there and a good buy signal.<\/li>
- If you’re looking to buy you need consecutive good bull bars, but even then the context is tough because of all the reversals in this range. In a tight trading range you want to buy low, but it doesn’t look bullish until the top. If you scale in lower, you might need a very wide stop because the weekly could move down fast.<\/li><\/ul>\n\n\n\n
Market analysis reports archive<\/h3>\n\n\n\n
![\"DAX](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/04\/Dax-40-Weekly-Low-1-at-Top-of-a-Bear-Channel.png\" "\\"\\"")
<\/a>- The DAX 40 Weekly candle<\/a> was a bear bar triggering a low 1 sell at the 100-week MA and top of a broad bear channel.<\/li>
- The bulls see the first pullback from a reversal up from the 200-week moving average and finding support above the pre-COVID highs at 14000.\u00a0They see their longer-term trend intact<\/li>
- The bears see an 8 bear-bar, tight bear channel breakout from a 12-month trading range and pullback to the bear channel line for a continuation down and possible second leg. <\/li>
- It is a reasonable sell signal because we failed to close back in the trading range and have rejected the 100-week moving average for 4 weeks in a row. <\/li>
- For the bears it’s a low 1 sell but it has a tail on the bottom so it\u2019s not as bearish as it could be. They want a follow-through bear bar to confirm a possible second leg at least down to the March lows.<\/li>
- Tails on the top and bottom mean traders are trading with limit orders and expect breakouts to fail and go sideways which is reasonable to expect next week.<\/li>
- If you’re flat you can get short below a good bear bar or look to sell higher betting on sellers above.<\/li>
- If you’re short you can look to add on once there is a reasonable bear close – but if you look left none of the bears did that until the sell climax.<\/li>
- If you’re long you can look to get out below a bear bar next week and buy back lower above a bull bar and a likely double bottom.<\/li>
- If you’re buying above, we need a weekly bull close above these tails which is maybe 40%. It is more reasonable the bulls buy lower for a second entry, possible double bottom anywhere around 14000, to move back up to the highs of the range.<\/li><\/ul>\n\n\n\n
The Daily<\/em> DAX chart<\/h3>\n\n\n\n
<\/a>Dax 40 Daily – Tight Trading Range at Midpoint of Prior Move<\/figcaption><\/figure>\n\n\n\n - The DAX 40 on Friday was a doji bar closing below the 20-day MA.<\/li>
- We traded lower than last week and Tuesday and Wednesday were consecutive bear bars closing below their midpoints. <\/li>
- It is the second week in a row the bears got consecutive bear bars closing on their lows – is it always in short, or two legs sideways to down after a tight bull channel before resumption.<\/li>
- The bulls see two legs sideways to down after 3 pushes up in a tight bull channel transitioning into a broad bull channel. They expect the pullback to be minor and will look to scale in lower with a high 2 near the moving average. We might get this next week.<\/li>
- Thursday was the first moving average gap bar in 2 weeks so it is also a reasonable buy signal. But because Friday only touched but closed below the moving average, it might need to move lower to attract buyers. Likely sideways to down next week.<\/li>
- The bears see the first pullback to the topside of the broad bear channel for a measured move down. Traders will expect 2 legs sideways to down after the wedge reversal, this might be considered the start of the longer 2nd<\/sup> leg of the prior sell climax.<\/li>
- Who is right? This is what happens in a trading range, reasonable buy and sell signals so it’s likely we will reverse until we get strong closes in either direction.<\/li>
- If the bears can close below Wednesday and stay below the moving average then it is reasonable we are always in short, and a strong weekly close would continue the second leg down to at least the March lows.\u00a0We might drop faster than Will Smith out of the Academy.<\/li>
- If the bulls can breakout above Friday and trigger a high 1 buy, or buy below daily closes next week, it might convince bulls we can get back up with a second leg into the range above. Reasonably positive European war news might move Dax back up into the range.<\/li>
- Because we have the underside of the prior trading range breakout as resistance it reasonable to buy below betting that 80% of breakouts fail.<\/li>
- If you’re flat you can look to buy above the MA with a stop above Tuesday betting if we get there we are likely to move higher, it would be a high 1 on the weekly up there and a good buy signal.<\/li>
- If you’re looking to buy you need consecutive good bull bars, but even then the context is tough because of all the reversals in this range. In a tight trading range you want to buy low, but it doesn’t look bullish until the top. If you scale in lower, you might need a very wide stop because the weekly could move down fast.<\/li><\/ul>\n\n\n\n
Market analysis reports archive<\/h3>\n\n\n\n