Hey traders.
If you are following our analysis and free webinars every Monday, then you know that over the last few weeks we have been tracking German DAX very closely and covering it in detail. In our latest free webinar update on Monday, we specifically highlighted the importance of gaps and how useful they can be when combined with Elliott Wave analysis. As you may recall, we were looking for wave four support around 23600, from where the market perfectly rebounded out of the corrective channel, confirming that wave four was completed. Notice also how price reversed perfectly from our yellow box, which we call a trade reversal zone and often represents opportunities for our members.
You can read full article here – https://wavetraders.com/blog/european-stocks-climb-as-dax-momentum-signals-fresh-upside-apr-23-2026/
Since then, we have seen a perfect gap fill around 25150. More importantly, gaps often act firstly as magnets, and once filled they can later become reversal zones. We can now clearly see this textbook example playing out on the chart, which suggests that some new pullback could now be in the cards. The big question now is how deep this pullback could be and which levels to watch for the next continuation higher. Well, that part is reserved for our premium members.
If you enjoy this type of analysis and want a step-by-step daily approach with regular updates, then make sure to check our premium services.
Trade well, Grega
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