DAX Trading Setup Explained : Buying the Dips in the Blue Box

As our members know we have had many profitable trading setups recently.   In this technical article, we are going to talk about another Elliott Wave trading setup we got in DAX. The Index has completed its correction exactly at the Equal Legs zone, also known as the Blue Box Area. In this article, we’ll break down the Elliott Wave forecast, explain the trading setup in detail, and provide the upside target.

DAX Elliott Wave 4 Hour  Chart 09.25.2025

DAX is forming a 3-wave pullback against the 18,472 low, unfolding as a Double Three pattern. The extreme zone ,Equal Legs — has already been reached at the 23,314.69–22,549.92 area, where we are looking to re-enter as buyers. Minimum requirements are already met, and we have entered long positions at the Equal Legs 23,314.69 area. We recommend that members avoid selling DAX. We expect at least a three-wave bounce from the Blue Box area. Once the price reaches the 50% Fibonacci retracement against the red X connector, we will make the position risk-free by moving the stop loss to breakeven and booking partial profits.

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Official trading strategy on How to trade 3, 7, or 11 swing and equal leg is explained in details in Educational Video, available for members viewing inside the membership area.

DAX

DAX Elliott Wave 4 Hour  Chart 10.01.2025

DAX found buyers as expected at the Blue Box area, making decent bounce.  The price has reached and exceeded 50 fibs from the X red connector. Consequently, any long positions from the Blue Box should now be risk-free. We’ve set our stop loss at breakeven and have already secured partial profits. While above the last low 23,278 low we count (4) blue correction completed. Wave (5 ) can be in progress toward new highs, targeting 24,946- 25,459 area.

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DAX

Source: https://elliottwave-forecast.com/stock-market/dax-trading-setup-buying-blue-box/