DAX rally from 8/29 low is unfolding as a double three Elliott Wave structure where Intermediate wave (W) ended at 13089 and Intermediate wave (X) ended at 12903. Up from there, the rally from 12903 low appears to be unfolding as an impulse. Minute wave ((i)) ended at 13066, and Minute wave ((ii)) ended at 12906.5. Minute wave ((iii)) ended at 13481.5 and pullback to 13401 ended Minute wave ((iv)). While pullbacks stay above 13401, but more importantly above 12906.5, expect 1 more leg higher towards 13657.69 – 17836.55 to complete Minor wave A. Pair should then pullback in Minor wave B in 3, 7, or 11 swing before the rally resumes. We don’t like selling the proposed pullback.
DAX 1 Hour Elliott Wave Analysis
Double three ( 7 swings) is one of the most important patterns in Elliott wave’s new theory. It is also one of the most common patterns in the market these days. Double three is also called a 7-swing structure. It is a very reliable pattern and it gives traders a good opportunity to trade with a well-defined level of risk and target areas. The image below shows what Elliott Wave Double Three looks like. It has labels (W), (X), (Y) and an internal structure of 3-3-3. This means that all 3 legs has corrective sequences. Each (W) and (Y) is formed by 3 wave oscillations and has a structure of A, B, C or W, X, Y of smaller degrees.
