? DAX30 Creates Bullish ABC Pattern in Daily Triangle ?
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Hi traders,
The German index DAX30 seems to be building a triangle chart pattern which could be part of a wave 4 pattern.
DAX
Week
A triangle pattern typically has 5 sub waves which are formed by an ABCDE (pink). The break of the resistance (red) trend line could confirm a bullish breakout whereas a break below the support (blue) could indicate a bigger bearish reversal.
Day
The DAX index is probably building an ABC (pink) zigzag pattern within wave D (pink). The wave D remains valid as long as price stays below the Fibonacci levels.
4 hour
The alternative could still be that price is in a bearish wave 4 (orange) but does has become unlikely considering the current bullish price action. A bullish ABC (purple) within wave D (pink) is much more likely.
Good trading,
Chris Svorcik
Elite CurrenSea
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