13-12-2017 Dax Technical Analysis

Another reminder that this week for these DaxTrader articles. I don’t enjoy trading during the liquidity drain over the holiday period, so I will be taking some time away to spend with friends and family. Hopefully you guys are going to do something similar.

13-12-2017 Dax Outlook


The main image for this article is a familiar one, it’s the fork pulled through the swings which is capturing price quite well. In this image I have drawn the retracement target line (black line) through the median line gap for an opportunity to find a long. According to Alan Andrews, when the price gaps through a median line, it has a high percentage chance of reaching the next median line. In this case, it would be the upper median line parallel (UMLH). That is what we are watching for.

We may need a couple of attempts at the longs (as our stop losses are shaken out), but there is a potential swing trade on the cards and we are looking for entries. This methodology is performing very well for us and you can see previous trading performance here: https://goo.gl/VDDzqk

13-12-2017 Dax Charts

We discussed this chart in the webinar this morning and it’s based on Andrews’ work again. Pull a line through pivots 1 and 4 (the center line), then pull a parallel of that line to pivot 0 (the action line), then pull another parallel the same distance but on the otherside of the center line (this is the reaction line).

In a nutshell we are pulling an Action Center Reaction (ACR) line set through pivots 1 and 4 with a reaction line at pivot zero to provide the reaction line as a target.

Condensed again: ‘we are drawing a 1 to 4 ACR’.

The reaction line is close to the UMLH (upper median line parallel) of the bullish fork and the recent ‘gap’ could act as a balance point, so if we measure the distance from pivot 2 to the gap, then expand that again above the gap, look where the expansion target is. Interesting eh?

The tools and this methodology is what we use in the DaxTrader Premium channels and I share some of this information in the free broadcast channel as well. To join the broadcast channel, download telegram messenger and use this link: https://t.me/joinchat/AAAAAEAypsW3Xet_6ngBlw


13-12-2017 Dax Key Levels

POC *13142
Value Area High *13161
Value Area Low *13099
14 Day ATR147.34
200 EMA12479
Daily R213253
Daily R113212
Daily Pivot13145
Daily S113105
Daily S213038
*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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