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Evening Star Doji Candlestick Pattern in Dax Index

July 28, 2019 | 10:55 am | The 5%ers' Blog > Trading Room
July 28, 2019 | 10:55 am
The 5%ers' Blog > Trading Room

The Dax Index Pull Back Despite the Hints of Easier Monetary From the ECB

From the technical analysis perspective, we can see how the DAX index price creates a candlestick pattern called – Evening Star Doji.

Evening Star Doji is a bearish reversal pattern, and it’s a three candles pattern.

The first candle is an uptrend candle, The next day opens higher and trades in a very narrow range, And the last day reverses lower and closes below the midpoint of the first candle.

The daily candle from 25/07/2019 engulfed the two previous candles, we can see that on the left side of the picture attached.

That big red candle completes the Evening Star Doji pattern and provides the signal to look for the right setup to sell the DAX index.

On the H1 time frame, we can see how the price dropped down from the top and creates a fresh supply.

That dropped indicates of massive sell orders at the supply above.

Meanwhile, we can see the price retrace toward the supply above slowly and easy and it’s starting to look like Compression.

That hints more of technical correction and not a real momentum.

If and when the price reaches the supply above, it will be the right time to sell the DAX index.

The first target will be the demand level 1 on the picture.

The final target will be the demand level number 2.

From the fundamental aspect, all this happened despite the hints of easier monetary from the ECB.

European Central Bank’s (ECB) president Mario Draghi provides some hints for potential official interest rates cut.

He says it will leave official interest rates “at present or lower levels”.

 

 

 

 

 

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