By Claus Andersen
3. September 2019
![](https://www.daytraderland.com/dk/wp-content/uploads/2019/09/DAX-1-2-1024x636.gif)
Price action pattern in the DAX 60 min chart has triggered. It is a head and shoulders reversal pattern. Often after a break of the neckline the pullback goes to test the neckline from the opposite side. In this case as new support. Remember that the neckline is a support and resistance area and price does not have to go all the way to the line to test the area. Also a measured move correction would take price back into the head and shoulders pattern. In that case the pattern looks more like a two leg bear flag pattern. We will have to wait and see. For now be aware of the context in the pullback.
![](https://www.daytraderland.com/dk/wp-content/uploads/2019/09/DAX-2-2-1024x642.gif)
On the 15 min chart above we see that last week was a strong bull trend week. The week opened on the low and formed a trading range. It broke to the upside on Wednesday. Friday and into this week price traded sideways in a trading range again. The BO was strong, but the trading range has gone on for long, and the BO probability direction is near 50:50. Look for a BOPB or a FBO.
New support and resistance levels.
Have a nice trading week.
Claus Andersen