Dax Technical Analysis 07/12/2015

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Hello traders!

We have had a lot of gloomy news recently, regarding oil prices, Syria, Russia, Paris, disappointed delivery from ECB, so you could understand the mini collapse on the Dax. We got down as far as the November lows, but the Dax seems to now have found support.  We had a decent NFP on Friday and so many people were buying the stock markets based on lower prices.

We are now approaching the fib retracement zone and we may look to trade sideways for a little while for now while people reposition. Somewhere between 10980 and 11060 could interest the bears. My concern about going short is that we have already given up 800 points in December so my question is; has the macro fundamental outlook really changed that much since Thursday? I think yes, the ECB was a set back, but no the macros have not changed that much in the grand scheme. I am maintaining my bullish bias, but reluctant to open a position at the moment.

Actually I am probably going to start getting away from the market a bit more over December, I think the volatility could dry up a bit so don’t really care too much about forcing something.

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

DaxTrader RSI EA Tips

Found out more here

Trading with an expert advisor during periods of volatility increases the already high risks of trading. Incorrect settings combined with a bad trading outcome (such as ECB Thursday) can wipe an account if you have over leveraged with and EA.

Make sure you limit the number of trades per market on the settings, the default is 10. I personally feel that is way too high. I change that to 1. Be careful how many markets you use the Expert Advisor on. For example, let’s say you place it on 16 forex markets including all the major dollar markets. If a big news release comes out your EA opens up trades, it could open up trades on many of those markets at the same time, so all of a sudden you are exposed to big position and it is goes the wrong way you can be wiped out.

Use the RSI Indicator with Alert to backtest your RSI strategy. Go and look to see if you can find any patterns. For example, put it on a 5 minute Dax chart and use the following settings: 21 period RSI, 80 overbought  and 20 oversold settings. Number of candles: 3500. Scroll back through and have a look at where the alerts came. Now choose a strategy and test it. So let’s say you have a 50 point stop loss vs 100 point take profit strategy. Go through each of the signals and see how the strategy would have performed. If you find one that could have worked historically (never a guide for a future success, but as good as any other) test it live with the EA

Setup a Virtual Private Server. I will explain more another time.

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Support & Resistance

KEY LEVELS
Daily R211041
Daily R110954
Daily Pivot10792
Daily S110705
Daily S210543
200 Day SMA10703

Dax Charts

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

3 thoughts on “Dax Technical Analysis 07/12/2015”

  1. elosteve

    Posted this on yesterdays, hope it is ok to post again today Chris (if not i guess you wont put it on here again)
    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

    1. Chris Bailey Post author

      I have just created a live chat here Steve. Or I can create a forum for you if you like?

      1. elosteve

        Hi chris yes i found it a little earlier today, not sure if the forum or skype will be best i started setting up a room on skype specifically for Dax traders and have had one person contact me so far but now yours is up and running that might be an easier option. May well post in forum and see what happens over next few days or so. Thanks Chris.

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