DAX Trading Idea
Today’s Trading Idea
The last trading idea that I had can be seen here. It went according to plan and on the very next day the USD/JPY pair shot up over 130 pips- almost touching our first target. It was a great momentum throughout the
trading day and the move was a clear bullish move all the way up. There is still no sign of reversal and I believe that there is more to see from this pair.
On the other side, today is a big day for the European markets and everybody is expecting ECB’s decision. If we look from the price action point of view, things always look objective. Even if there is a market moving
event, you can always get into a position if you have an established signal. Although, you should be extra cautious, because markets tend to be more unpredictable than usual during such events. I will decide whether to
trade this one at a later stage during the day. But there is a clear signal coming from the German stock market. Let’s get into a more detailed analysis.
When looking at the daily timeframe of DAX, we can see a bullish pin bar. There is a huge bearish rejection just before a big event for this particular market, which could be interpreted as a bullish signal.
We are at an all-time high, which is a more risky trade, since there is no retracement, but still the momentum behind this trend is very strong. So, the details for today’s trade are:
Long entry at 10,300. The stop should be placed just under 10,145. Our next target is 10,500. From then on it depends on the price action.
Happy Trading,
Colibri Trader