Elliott Wave Analysis: German DAX Intraday View

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German DAX is moving higher but on very low volume and low momentum so we suspect that price is in fifth wave, final leg within larger trend. As such, upside can be limited in the next few sessions, especially if we also consider possibility of an ending diagonal, that is a reversal pattern. Short-term price levels at 11500 could cap the upside and send price lower into a new correction.

The ending diagonal is a special type of motive wave that occurs primarily in the wave 5 position when price has moved too far and too fast. Some ending diagonal triangles appear in the C wave of an ABC correction. In all cases, the ending diagonal terminates the move of larger patterns. They consist out of five waves, with each having three more sub-waves.

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Basic Ending Diagonal Pattern:

ending-diagonal

German DAX, 4H

dax-30

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Gregor Horvat first made his name in Slovenia and has become world famous in the forex market since 2003. He is both a trader and a technical analyst who offers trading strategies on the Fibonacci and Elliot Wave principle. His main focus is on currency pairs, U.S. stock market, gold and oil. Gregor Horvat found the forex service offered on http://www.ew-forecast.com/. This website provides traders technical analysis, while putting emphasis on behavioral patterns. These are derived from the Elliott Wave Principle (EWP). Traders who are interested in the entry and exit positions, and he probability of the former and latter follow the EWP on a regular basis.