Hello traders, good morning. I hope that your trading week is going well. Yesterday in the article we discussed that we saw the first bearish gap for some time. It turns out that this bearish gap lower was the start of the retracement from the top of the expanding pivot setup. You can see that setup below on the charts.
This morning I sent out a couple of ideas to the Premium channel, one bearish idea and one bullish idea. Which camp are you currently sat in?
11-01-2018 Dax Ideas
The Bullish idea is based on an ACR line set. It assumes that this recent sell-off was the first step (Action). So if we have a pullback to close the gap, then there is a 6:1 reward to risk trade.
The Bearish idea is based around a continuation play on the expanding pivot retracement, after finding a temporary balance point.
To learn about the ideas, find out more about becoming a premium member.
11-01-2018 Dax Levels
|Value Area High *||13293|
|Value Area Low *||13236|
|14 Day ATR||135.37|
|*These are FXCM numbers, not futures numbers. Please be aware that FXCM can often be 5-10 points higher than futures prices|
11-01-2018 Dax Charts
This is the expanding pivot chart and you can see the reaction we saw from the EP5 (expanding pivot 5). We have already retraced around 25% of the pattern.