The DAX has a reputation for being a volatile market and yesterday was a good example of its unpredictable behaviour.
17-01-2018 DAX Outlook
Well, it’s not looking great for buyers right now so waiting for a retracement down to the 13050-13150 zone and/or watching for a reaction and change in behaviour to get long is a popular strategy at the moment. Sellers are currently in control and traders can follow the trend until there is a change in behaviour.
We have expanding pivots and this suggests the market is currently directionless.
Expanding pivots is a setup that will often retrace back to balance. If that is the case, then we could see a pullback to the 13050-13150 zone
We threatened to break the bearish trend yesterday with the spike high early in the session, but bears took control again in the second half. It was a tumultuous session and many traders would likely have been trapped. However, the minor swings are bearish and remain so below 13243.
17-01-2018 Dax Levels
|Value Area High *||13344|
|Value Area Low *||13221|
|14 Day ATR||140.93|
|*These are FXCM numbers, not futures numbers. Please be aware that FXCM can often be 5-10 points higher than futures prices|
17-01-2018 DAX Charts
Here are a couple of examples of charts submitted to the chat room by a regular DaxTrader, John.
Yesterday dax threw me a wobbly with that push down to almost gapfill. took out a profit stop for me with the yoyo push back up, but the top offered a further chance to short. classic 5pet (5 point expanding triangle trade) back to balance for exit. ACR confluence for target. mml on 20m was the perfect entry tool to use yesterday to enter the short. can discuss in the webinar tomorrow if you remind me and time permits.
This is a thing of beauty too
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