- DAX is a German stock market index that includes 40 of Germany's largest blue chip businesses listed on the Frankfurt Stock Exchange
- On many occassions, it has been a leading indicator for other stock markets
- It is dancing around the historic lows of year 2021 and year 2022
- Stops are most likely waiting to be triggered below this historic low, and new bears will start entering short positions
- However, the institutions selling those shorts may be ready to stop those new bears out
- Strong hands that may be waiting to go Long, even temporarily, may be waiting to buy, as well
- This is a contrarian trade idea so you need to decide if it fits your personality and risk appetite
- Still, we always set a stop loss, as shown in the image below the following video
- Enter the Long in 3 buys (scale into the Long trade), 1st at 12405, 2nd on 12355 and the 3rd on 12305
- The average entry price for this DAX Long, if all 3 orders get filled, is: 12355
- Stop Loss: 12147
- Take Profit: 13187
- 4 to 1 reward vs. risk, trade the DAX index or the DAX futures at your risk only
- Correction to the chart in the video: The price levels are not at the COVID crash low but below the lows of 2022 and 2021, which are significant
DAX trade idea after it broke the COVID low
IMPORTANT SIDE NOTE:
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