06 m5 Dax Chart

Dax Technical Analysis 02/02/2016

[wp_ad_camp_1]

Good morning traders!

I will be sticking to the basics today, I have no major bias on the market, so I will simply be looking for signals to trade. First thing this morning, after the move lower, I took a long @ 9717. I am risking around 50 points, which would be under the cluster of price action from the evening session last night before the close. I am targeting around 100 points, which would be a break above the daily pivot and approaching a re-test of yesterday’s high. This trade was based on the signal that we printed hidden bullish divergence on the 5 minute chart.

Yesterday there were a number of signals that I missed from the RSI Indicator with Alert on the 1-minute chart, which you can see below. But I didn’t have my automatic trading software switched on to take advantage of it. The settings I used were 13 period RSI 70 30 on 1 minute chart.

RSI Indicator Signals
RSI Indicator Signals

 

The other signal I received, which I couldn’t take advantage of was on the 5-minute chart, which you can see below. This signal was excellent as it was positive divergence and ending up gaining around 150 points. Congratulations to anyone who took that.

[twitter-follow username=”DaxTrader54″ scheme=”light”]

What to watch today

I want to see if 9700 holds today, looking at the volume profile for yesterday there was a pocket around this price level which often causes a vacuum and price likes to find the bottom of the pocket before base-building. The bottom of that pocket seems to be around 9690. So if we hold those levels, it could be an interesting place to go long.

We gapped lower this morning and so a break above 9730 could allow us to close the gap. Just be aware that the daily pivot of 9750 is around 50% of the gap lower this morning, so a pullback to there could encourage bears to continue.

An untidy wedge formation still exists on the 30 minute chart so I am watching to see a reaction to a break of that.

We are not trending in any particular direction, short term, so look for signals from the RSI indicator or with divergence. If you can find some confluence with support and resistance, you’ll potentially have a great trade.


 

Dax Support & Resistance

KEY LEVELS
Daily R29962
Daily R19864
Daily Pivot9750
Daily S19652
Daily S29538
200 Day SMA10512

Dax Charts

02 Daily Dax Chart
02 Daily Dax Chart
[wp_ad_camp_1]
03 H4 Dax Chart
03 H4 Dax Chart
[wp_ad_camp_1]
05 m30 Dax Chart
05 m30 Dax Chart
[wp_ad_camp_1]
06 m5 Dax Chart
06 m5 Dax Chart