07-02-2018 Dax Technical Analysis

The DAX made some good progress yesterday gaining nearly 600 points in what would likely be considered a simple bounce from the Monday lows. Would it be unreasonable to expect the DAX to find some consolidation over the next couple of days? No. Markets often need some time to digest major moves like this.

The DAX currently has an inflated Daily Price Movement Range and if we use the standard 14-day Average True Range, the number is 230 points. So perhaps we could expect the DAX to remain inside a [pretty wide] range of 12300-12750 with fades either side of the range. That’s one potential strategy.

Another strategy could be the use of the Outside Bars, or more specifically the Wide Range Outside Bars, particularly for intraday, short-term trading. That’s one I am finding myself using more and more as volatility increases. Here’s a link to the indicator

DaxTrader Premium

Today we had the Wednesday Premium Webinar. The plan was to continue working through the five tenets of the Alan H. Andrews Action Reaction course and relate the terminology to the DAX in real-time. However, given the volatility in the markets at the moment, we completed a continuation of the Monday webinar instead. We revisited many of the market setups and signals from that session and there are some great setups developing.

Premium Members: log in the member’s page and check out the links and comments. Here are a few columns from the Spreadsheet:

Find out more about Premium here


07-02-2018 Dax Summary Video

Rather than debate all the possible options, here is the summary video of the Premium Webinar this morning.

07-02-2018 Key levels

POC *12447
Value Area High *12501
Value Area Low *12367
14 Day ATR235.16
200 EMA12681
50 EMA13104
Daily R213028
Daily R112836
Daily Pivot12456
Daily S112265
Daily S211884
*These are FXCM numbers, not futures numbers. Please be aware that FXCM can often be 5-10 points higher than futures prices

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