DAX: Bull Flag Following Inverse Head and Shoulders

We have not yet developed a trade around this, but we do note the clear inverse head and shoulders pattern that has played out. Following the penetration of the neckline, there was a bullish breakout, followed by a bull flag (a trend of decreasing highs and decreasing lows). After there is a significant breakout on sufficient volume, we will assume a bullish position. That indicates the bullish trend following the end of the inverse head and shoulders position will continue. The MACD is bullish, positive and increasing, and the DI+ is above the DI- on the ADX indictor, with the . Also technically, the fast and slow stochastics, the RSI and MFI are moderately positive, indicating bullish movements ahead. We define "moderately positive" as a reading between 50 and 70, showing increases at a sustainable rate such that there is not an impending mean reversion.