When looking at a weekly DAX chart, the obvious question is; is this a correction in a bull rally or is this a beginning of a bigger trend change?
I don’t have the answer to that question, your guess is as good as mine. And in my eyes, the price action alone on the chart doesn’t either answer the question.
However, the pattern on the chart is quite interesting and it should give us some guidelines to follow. Another thing we could follow is (E)MA20, when pointing north price is bullish and when pointing south (and below its moving average) price is bearish.
DAX WEEKLY CHART
Below a weekly DAX renko chart. No further comments needed, it should be quite clear.
