DAX (Germany) Elliott Wave technical analysis [Video]

Peter Mathers TradingLounge

DAX (Germany) Wave technical analysis

Function: Counter-Trend.
Mode: Corrective.
Structure: Gray Wave 4.
Position: Orange Wave 3.
Direction next higher degrees: Gray Wave 5.
Details: Gray Wave 3 appears completed; now, Gray Wave 4 of Orange Wave 3 is in play.
Wave cancel invalid level: 19,734.00.

The DAX (Germany) Elliott Wave Analysis for the daily chart provides a detailed assessment of the index’s current trend and potential future movements. The analysis identifies that the market is currently in a counter-trend phase, characterized by corrective movements rather than a strong directional trend.

The primary wave structure under consideration is Gray Wave 4, which is part of a larger corrective pattern. This wave is positioned within Orange Wave 3, highlighting its place within the broader wave count. The analysis suggests that Gray Wave 3 has likely concluded, and the market is now transitioning into Gray Wave 4 of Orange Wave 3. As a corrective wave, it may involve sideways movement or retracement before the next major trend emerges.

The next higher-degree wave to monitor is Gray Wave 5, anticipated to develop following the completion of Gray Wave 4. A crucial price level to observe is 19,734.00, serving as the invalidation point for the current wave count. If the price surpasses this threshold, the wave structure would be invalidated, potentially signaling a shift in market conditions.

Traders should closely watch the development of Gray Wave 4 while preparing for the potential emergence of Gray Wave 5. The analysis underscores the importance of monitoring the invalidation level to confirm or adjust the current wave count. This comprehensive review of the DAX daily chart offers valuable insights into market structure, helping traders anticipate future price movements. The analysis highlights the significance of wave patterns and key levels, aiding in more informed trading decisions.

DAX (Germany) Wave technical analysis

Function: Counter-Trend.
Mode: Corrective.
Structure: Gray Wave 4.
Position: Orange Wave 3.
Direction next higher degrees: Gray Wave 5.
Details: Gray Wave 3 appears completed; now, Gray Wave 4 of Orange Wave 3 is in play.
Wave cancel invalid level: 19,734.00.

The DAX (Germany) Elliott Wave Analysis for the weekly chart provides a comprehensive overview of the index’s current trend and potential future movements. The analysis identifies that the market is currently in a counter-trend phase, characterized by corrective movements rather than a strong directional trend.

The primary wave structure under review is Gray Wave 4, which is part of a larger corrective pattern. This wave is positioned within Orange Wave 3, highlighting its place in the broader wave count. The analysis suggests that Gray Wave 3 has likely concluded, and the market is now transitioning into Gray Wave 4 of Orange Wave 3. This corrective phase may involve sideways movement or retracement before the next significant trend emerges.

The next higher-degree wave to monitor is Gray Wave 5, which is expected to develop after the completion of Gray Wave 4. A crucial price level to observe is 19,734.00, serving as the invalidation point for the current wave count. If the price surpasses this level, the wave structure would be invalidated, potentially signaling a shift in market conditions.

Traders should closely track the development of Gray Wave 4 while preparing for the potential emergence of Gray Wave 5. The analysis underscores the importance of monitoring the invalidation level to confirm or adjust the current wave count.

This detailed examination of the DAX weekly chart offers a framework for understanding market structure and anticipating future price movements. By analyzing the weekly timeframe, traders gain a broader perspective on the market’s behavior, helping them align their strategies with longer-term trends and potential turning points. This insight provides valuable guidance for navigating the current corrective phase and making informed trading decisions.

DAX (Germany) Elliott Wave technical analysis [Video]

Author

Peter Mathers

TradingLounge

Peter Mathers started actively trading in 1982. He began his career at Hoei and Shoin, a Japanese futures trading company.

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