The downfall in DAX that started from the 12950 levels seems to have come to a halt even if temporary, right now it seems that from 12950 to 11870 we had a double Zig Zag type of correction, now the movement till 11870 could be the end of the corrective Wave iv or it could be the just the continuation of Wave iv as a Triangle or a Flat or some other complex formation however in either case we should see atleast a 3 legged up move from this level of 11870.
Double Zig Zag correction in DAX 30
In the image above you can see the second leg of the correction that I have labelled as a double Zig Zag.
Internal structures :
Wave (x) = Regular Flat
Wave (b) of (a)-(b)-(c) down is a triangle.
Clear impulse formation in DAX 30
From the current low of 11870 we have what it seems like a clear impulse formation.
The position of Wave 2 can lead to some alteration and hence a change in degree that is why I have labelled Wave 2 at two different locations, however in either case I believe we have atleast 1 up leg remaining minimum as a Wave 5.
Trade Setup :
Also as you can see above it looks like we have a Triangle forming in Wave 4 of this impulse which means that we can enter long trades on a clear break of the (B)-(D) trendline.
In short the impulse looks a clean and has a triangle formation in Wave 4 which gives us clear trading setup, at this point I would also like to point out that triangles can often be deceiving, this structure can also progress as some kind of complex correction or as a triangle in Wave (B) of an A-B-C type of Zig Zag correction hence only trades if initiated should be taken on clear break of the trendline and that too with strict stoploss.
As always I do update this market and number of other markets on regular intraday basis in my private group, if you wish to learn more from such updates and how I trade with Elliott Waves then you can find the details here : learn to trade using Elliott Wave Principles – My Video Course
To receive these updates at the earliest you can subscribe to my Emailing List.
Disclaimer – All content presented here is strictly for educational purpose, do read the complete site disclaimer before taking any action.