Today the DAX had a short kumo breakout out in the 4 hours chart, which is was not expecting. Then, I decided to take a look at the big picture again, and it dawned on me: impulse wave C alert!
I absolutely love wave Cs. I am usually at my best performance when there is a wave C or wave 3. Here is the new count:
The old count turned out to be wrong, it was still a corrective structure, but I only realised it an hour ago.
This breakaway gap above the cloud turned out to be a false breakout and really was a di.ck move, which cost a lot of people a lot of money...
The good thing is that I immediately opened a big short position @13000 in the DAX which is already 20P in profit right now.
As you can see in the picture, I plan to keep this short position until approx. 09.01.17 or until I see 5 waves down.
This is an 80% probability trade. I plan to increase my short position, when wave 4 is done. My target for wave C is 12480.
By the way, this double correction followed by a triple correction is a quite rare occurring pattern... which is why I did not even consider it for one second.
If you think this to be useful information:
Feel free to use and share my charts, but please mention me, @ew-and-patterns as the author. Otherwise it is considered plagiarism and I will flag you and advise my friends to do the same.
DISCLAIMER: I provide trading ideas using EW and Pattern analysis. The material in this post does not constitute any trading advice whatsoever. This is just the way I see the charts and what my trading ideas are. The author of this post is holding positions in this market at the time of this post. Please conduct your own due diligence, if you plan to copy anyones investment decisions.
If you make any trades or investments after reading this post, it is completely in your responsibility. I am not responsible for any of your losses. By reading this post you acknowledge and accept that.
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