Good morning traders!
The dollar is still strong at the moment, helped by the ADP numbers that came out yesterday, which Donald Trump seems to have taken credit for. But all eyes turn to today’s ECB rate decision and press conference. It was a fairly quiet evening from the Asian session last night which completed another relatively uneventful trading session, in terms of volume and volatility. I suspect trading will dry up in the build up to that release, so watch out if you’re holding EUR crosses or Dax trades.
Regarding my personal trading, it was a fairly good day yesterday for the Dax trading algorithm with a couple of small wins:
The Trading Exchange, [08.03.17 07:29] DAYTRADE BUY #GER30 @ 11933.45 | SL:11909.70 | TP:11987.16 | 2017.03.08 07:29 (GMT) | ID 61310293
The Trading Exchange, [08.03.17 09:19] CLOSE DAYTRADE BUY #GER30 @ 11987.45 | PROFIT: 51.51 PIPS | 2017.03.08 09:18 (GMT) | ID 61310293
The Trading Exchange, [08.03.17 10:58] DAYTRADE BUY #GER30 @ 11999.09 | SL:11980.24 | TP:12044.22 | 2017.03.08 10:58 (GMT) | ID 61314888
The Trading Exchange, [08.03.17 11:28] CLOSE DAYTRADE BUY #GER30 @ 11980.10 | PROFIT: -18.15 PIPS | 2017.03.08 11:28 (GMT) | ID 61314888
The Trading Exchange, [08.03.17 11:48] DAYTRADE BUY #GER30 @ 11941.95 | SL:11877.86 | TP:12095.85 | 2017.03.08 11:49 (GMT) | ID 61315466
The Trading Exchange, [08.03.17 13:03] CLOSE DAYTRADE BUY #GER30 @ 11977.85 | PROFIT: 34.21 PIPS | 2017.03.08 13:03 (GMT) | ID 61315466
The Trading Exchange, [08.03.17 15:16] DAYTRADE BUY #GER30 @ 11973.05 | SL:11936.84 | TP:12058.70 | 2017.03.08 15:16 (GMT) | ID 61318706
The Trading Exchange, [08.03.17 16:20] CLOSE DAYTRADE BUY #GER30 @ 11975.85 | PROFIT: 2.67 PIPS | 2017.03.08 16:20 (GMT) | ID 61318706
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Dax Daily Chart
Five consecutive bearish candles now, all of which fit inside the previous bullish candle, is this a type of compression or ‘spring-loaded’ set up where price is coiling into some kind of potentially explosive move, like what happens when your press down on a spring?
We are actually working on our sixth consecutive candle today and we have not even reached the 11875 level yet. In fact, we have not even reached 11915 yet. Keep an eye on Gold and be careful trading around ECB
Dax Hourly Chart
This chart is beginning to look like we are in a range and with 11925 providing the base, it suggests that we can find some value here for short-term buying opportunities, assuming that it continues to hold. The base of this range is around the 50% retracement, which adds some strength to the pattern.
There are currently no signals on this chart, but I am watching for either a break down to 11875 or a hold of 11925 and a move back up towards 12000.
Dax Intraday Chart
There is a signal on this chart, a buying signal, but it’s not very strong. There is bullish divergence between the price and the oscillator, we are also touching the lower Bollinger band. I would prefer a more compelling divergence signal, below the band, but we can’t make the market move in our direction.
However the algo is already long from 11934, currently in a little bit of profit, but it’s so early in the trade to really tell how it will play out.
Dax Support & Resistance
|200 Day EMA||10998|