The DAX is going through a correction at the moment after completing a 5 wave up structure (not shown on the chart). My long term bias for this pair is short. However, it looks like the current corrective wave could be coming to an end before it starts another ABC structure.
How to trade:
- Watch for a break and consolidation on the lower TF trend line. This will confirm that the C wave is complete.
- The next wave up could potentially move as the first A wave.
How to trade:
- Watch for a break and consolidation on the lower TF trend line. This will confirm that the C wave is complete.
- The next wave up could potentially move as the first A wave.
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