DAX is trading slow, choppy and overlapping ideally unfolding a triangle correction in wave B) of a higher degree. As such more slow movement may follow within current correction. Once wave B) completely unfolds a reversal lower into wave C) may follow.
German DAX, 1H
A Triangle is a common 5-wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to C, and from waves B to D. A Triangle is either contracting or expanding depending on whether the channel lines are converging or expanding. Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3.
Triangles can occur in wave 4, wave B, wave X position or in some very rare cases also in wave Y of a combination.
Triangle pattern:
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