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\/05\/Dax-40-Double-Bottom-in-Bear-Channel-1-680x383.png\" "\\"\\"")
<\/a>Dax 40 Double Bottom in Bear Channel<\/figcaption><\/figure>\n\n\n\n- The DAX 40 <\/a>weekly futures index was a small bear doji bar. with long tails above and below.<\/li>
- We said last week that we would trade sideways to up and to expect sellers. We also said that there might not be buyers for the follow-through bull bar.<\/li>
- The bulls see a double bottom buy setup with March 7th<\/sup>, but with no follow through last week they might need to drop lower to find buyers. <\/li>
- They see we rejected the 200-week moving average so we might need to go sideways before going back up.<\/li>
- Bears see a broad bear channel, and that we are still always in short. But it has been a tight trading range for the past 8 weeks and we closed right in the middle of this even tighter trading range – so it is breakout mode.<\/li>
- Bears have been selling above weekly highs for 8 weeks so expect more sellers at and above the moving average. <\/li>
- The bulls want a follow-through bar like 2 weeks ago, for a double bottom higher low major trend reversal and they might get it. But it could also be a bear flag and a good sell signal, so likely sideways to down for the time being.<\/li>
- The bears want the follow through to finish after 2 weeks as a bull trap for a continuation move down, hopefully forming a harmonic with the move down from January to March. But it might take a while to get there – maybe all year if we get there at all.<\/li>
- For the bulls, it’s a High 3, so it’s a wedge, looking for a follow through buy signal and measured move up. But we are below the moving average so they might scalp.<\/li>
- The math is bad for the bears, that is why we are stalling here. We are at the bottom of a tight trading range, in the bottom third of a larger range so the risk is big and the reward is small.<\/li>
- Bulls are happy to buy because it’s a swing buy in the bottom third of the range and the bottom third of the tighter trading range – low probability but a higher reward.<\/li>
- Some bulls are swinging with a target high up at the range highs so they will likely scale in lower as bears give up. If the double bottom holds they will start to more aggressive.<\/li>
- Bears want a follow-through bar to break through the range and set up the larger second leg but it might have finished last week.<\/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\/05\/DAX-40-Higher-Low-Major-Trend-Reversal-680x383.png\" "\\"\\"")
<\/a>DAX 40 Higher Low Major Trend Reversal<\/figcaption><\/figure>\n\n\n\n
![\"Dax](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/05\/Dax-40-Double-Bottom-in-Bear-Channel-1.png\" "\\"\\"")
<\/a>- The DAX 40 <\/a>weekly futures index was a small bear doji bar. with long tails above and below.<\/li>
- We said last week that we would trade sideways to up and to expect sellers. We also said that there might not be buyers for the follow-through bull bar.<\/li>
- The bulls see a double bottom buy setup with March 7th<\/sup>, but with no follow through last week they might need to drop lower to find buyers. <\/li>
- They see we rejected the 200-week moving average so we might need to go sideways before going back up.<\/li>
- Bears see a broad bear channel, and that we are still always in short. But it has been a tight trading range for the past 8 weeks and we closed right in the middle of this even tighter trading range – so it is breakout mode.<\/li>
- Bears have been selling above weekly highs for 8 weeks so expect more sellers at and above the moving average. <\/li>
- The bulls want a follow-through bar like 2 weeks ago, for a double bottom higher low major trend reversal and they might get it. But it could also be a bear flag and a good sell signal, so likely sideways to down for the time being.<\/li>
- The bears want the follow through to finish after 2 weeks as a bull trap for a continuation move down, hopefully forming a harmonic with the move down from January to March. But it might take a while to get there – maybe all year if we get there at all.<\/li>
- For the bulls, it’s a High 3, so it’s a wedge, looking for a follow through buy signal and measured move up. But we are below the moving average so they might scalp.<\/li>
- The math is bad for the bears, that is why we are stalling here. We are at the bottom of a tight trading range, in the bottom third of a larger range so the risk is big and the reward is small.<\/li>
- Bulls are happy to buy because it’s a swing buy in the bottom third of the range and the bottom third of the tighter trading range – low probability but a higher reward.<\/li>
- Some bulls are swinging with a target high up at the range highs so they will likely scale in lower as bears give up. If the double bottom holds they will start to more aggressive.<\/li>
- Bears want a follow-through bar to break through the range and set up the larger second leg but it might have finished last week.<\/li><\/ul>\n\n\n\n
The Daily<\/em> DAX chart<\/h3>\n\n\n\n
<\/a>DAX 40 Higher Low Major Trend Reversal<\/figcaption><\/figure>\n\n\n\n