DE40 (German Index) – Weekly Insight and 4-Hour Analysis
DE40 (German Index) – Weekly Insight and 4-Hour Analysis
The German Index (DE40) has been strongly bullish over the past week. However, I’m currently avoiding any long trades, and here’s why:
Whenever the market rallies sharply—especially with DE40—there’s a high probability of a sudden crash before you can react. While the 4-hour time frame shows slight corrections, these pullbacks lack strength and conviction. Impulsive entries at this stage could expose your capital to unnecessary risk.
Ideal Trading Scenarios:
Fibonacci Retracement Setup:
Wait for the price to pull back to at least the 50% retracement level on the Fibonacci scale.
If the price shows clear signs of bullish momentum or a pullback at this level, it could signal a good opportunity to go long.
Key Level Test at 19,670:
If the price continues to drop instead of stabilizing at the Fibonacci retracement level, watch for it to test the key support zone at 19,670.
Once the price confirms this level, it may provide a solid entry point for a long trade.
Liquidity Sweeps and Wicks:
Look for a liquidity sweep, such as a significant wick to the downside, indicating a potential reversal.
This confirmation can offer an additional layer of security for long trades.
Important Notes:
Protecting your capital should always be your top priority.
Avoid impulsive trades during shallow corrections, as they often lack follow-through.
Be patient and wait for clear retracements or liquidity sweeps before entering the market.
Making no money is still better than losing money.
Final Thoughts:
Patience is the key to success in such a scenario. Avoid revenge or impulsive trading, and let the market come to you. Focus on protecting your capital and only act when the setup aligns with your strategy.
That’s it for today’s analysis. I hope this helps you in your trading decisions. Don’t forget to like and comment if you find this valuable—it keeps me motivated to provide more insights!
The German Index (DE40) has been strongly bullish over the past week. However, I’m currently avoiding any long trades, and here’s why:
Whenever the market rallies sharply—especially with DE40—there’s a high probability of a sudden crash before you can react. While the 4-hour time frame shows slight corrections, these pullbacks lack strength and conviction. Impulsive entries at this stage could expose your capital to unnecessary risk.
Ideal Trading Scenarios:
Fibonacci Retracement Setup:
Wait for the price to pull back to at least the 50% retracement level on the Fibonacci scale.
If the price shows clear signs of bullish momentum or a pullback at this level, it could signal a good opportunity to go long.
Key Level Test at 19,670:
If the price continues to drop instead of stabilizing at the Fibonacci retracement level, watch for it to test the key support zone at 19,670.
Once the price confirms this level, it may provide a solid entry point for a long trade.
Liquidity Sweeps and Wicks:
Look for a liquidity sweep, such as a significant wick to the downside, indicating a potential reversal.
This confirmation can offer an additional layer of security for long trades.
Important Notes:
Protecting your capital should always be your top priority.
Avoid impulsive trades during shallow corrections, as they often lack follow-through.
Be patient and wait for clear retracements or liquidity sweeps before entering the market.
Making no money is still better than losing money.
Final Thoughts:
Patience is the key to success in such a scenario. Avoid revenge or impulsive trading, and let the market come to you. Focus on protecting your capital and only act when the setup aligns with your strategy.
That’s it for today’s analysis. I hope this helps you in your trading decisions. Don’t forget to like and comment if you find this valuable—it keeps me motivated to provide more insights!
Gurvinder singh
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