Dax Technical Analysis 07/03/2017

Good morning traders!

I hope you all had a great trading day yesterday, I had to catch up on some life laundry so could not complete the normal article, but let’s jump straight into the charts. Remember to come join the DaxTrader Telegram channel for more analysis, commentary and signals: https://t.me/joinchat/AAAAAEAypsW3Xet_6ngBlw

Daily Dax Chart

If we google the “rising three” method or candlestick pattern we can see a potential for something similar developing here. This particular pattern is a bullish continuation pattern that requires 5 candles to confirm, so far we only have 4, so it’s be no means guaranteed.

The overall technical trend is bullish above 11700 as we continue to make higher highs and higher lows. The strong bullish candle from the beginning of March is still being digested and pullback levels range between 11825-11900, assuming the move continues and we are not set for a reversal.

Watch out for ECB Thursday later this week as potential high impact news.

01 Dax Daily Chart
01 Dax Daily Chart


Dax Hourly Chart

Do I see bullish divergence there on the hourly chart, it’s pretty small, tenuous perhaps, but it’s there. A potential buying signal opening up the opportunity to go long with a stop under the low (11915) and target a 2:1 reward, or thereabouts.

Price is currently trapped between the 11900 retracement support and 11990 so watch for a break of these levels.

03 H1 Dax Chart
03 H1 Dax Chart

Dax Intraday Chart

We pierced the lower Bollinger band yesterday, which can often provide conditions for a buying signal. I personally like to look for divergence whilst either above or below the band, but in this case, price retraced back inside the band pretty quickly and now trades sideways around the daily pivot (pivot point indicator).

The Bollinger band is set up as a (50,2 on the 1 Hour chart). I don’t believe you can do that on a MetaTrader platform, but it’s a great tool on the Trading Station platform. I appreciate that the Bollinger band relies on a moving average, which is a lagging indicator, but when you combine RSI divergence with this tool, it can be very effective. However, no signal just yet.

So yesterday was really very quiet on the trading front. I made no Dax trades and a handful of Forex trades. Really quiet. Today will probably be different.

05 Dax m5 Chart
05 Dax m5 Chart

Dax Support & Resistance

Daily R212068
Daily R112023
Daily Pivot11971
Daily S111926
Daily S211874
200 Day EMA10979