Dax Technical Analysis 04/12/2015

[wp_ad_camp_1]

Morning traders!

First things first. Congratulations to all those who anticipated the ECB decision yesterday and congratulations to those who profited, I know some of you did very well. I did not, the less said about my trading results the better, they are available online anyway and there is nothing to brag about. I simply made too many mistakes yesterday and paid for them through the nose. I’ll learn from it, brush myself down, take a break today and move on. The main lesson I learned is to not rely on a mobile phone app to execute or manage trades during times of volatility. They fail. I also learned that if I am going out (to work) during times of high volatility, close the trades before I go.

If I can take a positive from yesterday, simply to motivate me to write this article, it’s that my DaxTrader RSI automatic trader on my forex account performed well yesterday and has taken me up to 31.52% return over 20 weeks.

So today I will be taking a break from trading and be back as usual on Monday. I do not intend on making the same mistakes today.

[wp_ad_camp_1]

I will pick up on a comment made by Roger

Yes Dan. It seems we share many of the same weaknesses. As I have discovered and no doubt others before me, being successful at this game (and I am not there yet) is really about conquering my emotions. Mainly despondency (fear) and worse still euphoria (greed). I know what I need to do, take a system that suits my personality, is relatively simple to understand and apply and then hardest of all stick to it through losses and draw downs to gain the big wins when they come. Trading is a lonely occupation and one that most of us are not adapted to especially if we face daily scepticism from those close to us who I find are quick to make uninformed judgements on it being a worthwhile occupation ! I am happy to share the system(s) I am following if you’re interested.

Roger, if you are interested in sharing, I would happily post an article up here. Congratulations on your gains yesterday as well.

Also Mukhls sent this:

best setting for german30.. totally work😆. want just pm me

I don’t know how you would need me to pm you, perhaps you could provide the information here in comments, or email me?

 

Thanks for posting Krish, you seem pleased with the outcome, I presume you profited so well done:

Smack in the face for DAX Bulls just like I expected. Rally lasted longer than I expected though!

Finally, from Roger:

What a day ! Mario is not so super says the market. I think all would agree we are now bearish ! We are due a cyclical resistance on the weekly chart and this could be the start of another visit to the 9000’s or maybe the dax will surprise us again !

It certainly appears so, After such a big slump yesterday the momentum is likely to favour the downside and I appreciate this may sound crazy, but I won’t change my bias to bearish until we break 10,500. I am however now neutral.

If we get a pullback from yesterday then somewhere between 10900-11000 could be interesting to watch as a possible sell zone, or a break below the low of yesterday.

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

Dax Support & Resistance

KEY LEVELS
Daily R211560
Daily R111118
Daily Pivot10879
Daily S110437
Daily S210198
200 Day SMA10700

Dax Charts

06 m5 Dax Chart
06 m5 Dax Chart
05 m30 Dax Chart
05 m30 Dax Chart
03 H4 Dax Chart
03 H4 Dax Chart
02 Daily Dax Chart
02 Daily Dax Chart

 

10 thoughts on “Dax Technical Analysis 04/12/2015”

  1. cryptocamel

    unlucky mate… tbf it wasnt too much of a hit all things considered. I read ur blog for the first time yesterday and i like it a lot. That said it was obvious u had a strong bias to the upside (probably helped by ur winning positions). It was this bias before key news that hurt u I believe.

    1. Dan

      Dir Bias is a bitch n very dangerous but at some stage we all do it. The only way to kill it is to not read news, that is also hard. I say WITH THE DAX the only way to trend trade it is with 600 point stops so 1-2.00 p/point is doable and no stress. D trading it wait for the monster momentum then get in. The key is to WAIT for it. Guys this is the hardest index to trade why do we do it : ) We need a trading room for the SERIOUS EXPERIENCED DAX trader, collective mind power is HProbability we then in theory all win because one might be wrong but 6 who agree won’t.

  2. sants

    hi DaxTraders,

    I have been following this website for a while, and reading the Dax outlook. I find it very interesting in having a platform where traders can come along and discuss strategies and experiences. Yesterday was one of the days which could either make your account grow immensely or waste it all if you are not protected. I have been trading also for years now, emotion is the biggest enemy in trading. I have many times burnt myself by trading on these important hours when all eyes are on ECB or FED, so my personal advise for myself is just to either stay of the market that day or watch from the sideline. To be honest, when I watched it from the sideline your hands can start to itch and you see opportunities to trade, but volatility is so high which makes it to risky to trade. Sometimes it is very easy to say, but eliminating emotions in trading is not always easy. it would be nice to share tips with each other. Trade with a plan so be prepared, avoid these volatile days and come back when markets are more reliable in terms of analysis, because yesterday when I just watched and demo trade it did not make any sense. Almost 660 points movements. Knowing when to trade is also a very good insight to have. It can be an enhancement if you implement this in your strategy.

    1. Dan

      Hello sants
      The problem with this index is that at “times” technically it does not respond. How we could increase our odds is by using wider stops so therefore u need to reduce your parcel size. (sorry don’t mean to lecture anyone just making a point) many times price action was telling me what will happen but it only happens after some kind of opposite move. BTW why the fk does that always happen !?! Seems every time I enter it always goes negative before positive. Anyway this is the DAX we could be considered glutons for punishment. But pigs are the ones that get slaughtered. I will make the huge mistake and gloat here : ((((( made 700.00 last night hahaha take that DAX you prick. Owww I’ll regret that statment !

  3. mali7

    Hi Chris, I did very well yesterday! How? What system? Well, I stopped trading from 12pm lunch-time and that saved me! I was expecting the volatility but not the big slump we had, well done to those who called it right, but yesterday wasn’t a technical trading – rather gambling.

  4. Dan

    BTW Chris,
    Thanks for your constant efforts with the site. Do you have ppal so we can all send you a xmas present : )

  5. alex21

    Dax as we know is very volatile. the key to make profit that i have realized ( after many losses) is to take profit quickly or atleast partially after 20- 30 points. to start with 5 pounds per point and take 3 pounds off after 20 points. if you have 2 winning trades per day that would equate to 100 -200 pounds. i will be happy with this. Also tight stops otherwise the DAX is gonna destroy you.

  6. Roger

    GM Chris et al.

    7/12 – Quiet Futures opening so far.

    My trading system shows we are still bearish on Dax below 11038 on the daily chart

    As 09:09 my triggers are as foilows:

    For Trend followers (Daily Chart)

    Sell Trigger 10929 (we are below this)
    Trailing stop loss for shorts 11040
    Buy Trigger 11090

    Targets for shorts (below 10929)

    1) 10713
    2) 10667
    3 10476

    Targets for Longs (above 11034)

    1) 11287
    2 11390
    3) 11539

    Possible Countertrend trade

    Buy 5min 8 period EMA cross above 10929, Stop is cross back below. Target 11040, 11090, 11287

  7. steve

    Hi Chris, only discovered your site recently and have found it interesting as i was beginning to think i was the only person on the planet trading mainly Dax! (other comments have said “Trading can be a lonely occupation”). I have put pen to paper on here after seeing Rogers comment about sharing his system which i guess would be of interest to some on here BUT something else comes to my mind. would anybody like to be part of a skype chat room for sharing comments, ideas etc and more specifically helping each other with the emotional support which i believe is the hardest part of trading. As far as i know there is nobody doing this relative to Dax. Anyway please give my comments some thought and if you or anyone else wants to contact me via skype my skype name is elosteve

Comments are closed.

en_USEnglish
en_USEnglish