Dax Technical Analysis 10/03/2017

Hello traders!

I hope you all had a decent trading day yesterday and it’s Friday again. I am sure I have said this once or twice before, but these weeks are just peeling away at the moment, time seems to be accelerating and it’s crazy.

In news, nothing really significant, but German Chancellor Merkel said that ECB chief Draghi stressed (to EU leaders) that structural reforms are necessary, nothing new. And Theresa May reiterated that she will be triggering article 50 by the end of March, nothing new. There is NFP today, so the normal volatility will begin later and expectations are a strong print, making the rate hike conversation boil over again in the lead-up to next week’s FOMC meeting.

Regards trading, I had a pretty good day yesterday, the algo seems to be finding some decent entries at the moment, but I have been exiting some of the trades earlier than the profit targets to bank profits. Yesterday evening I was out and away from the algo account, so I could not close the trade out early, as I would have done under normal circumstances. It turned out to be a great trade and hit target, but I can not take credit for it, because I would closed the trade early. But I will take it.

Here’s a list of the trades from yesterday:

The Trading Exchange, [09.03.17 09:53] DAYTRADE BUY #GER30 @ 11934.25 | SL:11905.03 | TP:12004.31 | 2017.03.09 09:53 (GMT) | ID 61339496

The Trading Exchange, [09.03.17 13:23] CLOSE DAYTRADE BUY #GER30 @ 11945.16 | PROFIT: 10.40 PIPS | 2017.03.09 13:23 (GMT) | ID 61339496


The Trading Exchange, [09.03.17 15:44] DAYTRADE BUY #GER30 @ 11971.95 | SL:11932.65 | TP:12065.29 | 2017.03.09 15:44 (GMT) | ID 61346936

The Trading Exchange, [09.03.17 16:11] CLOSE DAYTRADE BUY #GER30 @ 11981.05 | PROFIT: 8.71 PIPS | 2017.03.09 16:11 (GMT) | ID 61346936

The Trading Exchange, [09.03.17 18:45] DAYTRADE BUY #GER30 @ 11972.35 | SL:11960.37 | TP:12001.64 | 2017.03.09 18:45 (GMT) | ID 61348653

The Trading Exchange, [09.03.17 19:04] CLOSE DAYTRADE BUY #GER30 @ 11960.15 | PROFIT: -11.66 PIPS | 2017.03.09 19:04 (GMT) | ID 61348653

The Trading Exchange, [09.03.17 19:20] DAYTRADE BUY #GER30 @ 11951.05 | SL:11925.97 | TP:12011.97 | 2017.03.09 19:20 (GMT) | ID 61348871

The Trading Exchange, [10.03.17 07:00] CLOSE DAYTRADE BUY #GER30 @ 12012.25 | PROFIT: 58.63 PIPS | 2017.03.10 07:00 (GMT) | ID 61348871

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Dax Daily Chart

We have broken the run of consecutive bearish candles and perhaps this is the beginning of another breakout attempt. Today we have continued on from the bullish progress we made yesterday. 12075 is still potential resistance. It we do break the previous high, then we have printed a higher low and longer-term bulls can start moving stop losses. Is ‘the rising five’ a new technical discovery here on the Dax?

I am noticing that the Kumo cloud is beginning to catch up with price and the 200 day EMA is really beginning to speed up as well.

01 Dax Daily Chart
01 Dax Daily Chart

Dax Hourly Chart

The support zone, just above the 50% retracement looks a lot stronger now that price has bounced. We tested this area many times over the last week, ensured that it would ‘hold our weight’ and now we find the DAX looking for the next level. The chance has kind of gone to buy, but if we get another sell off, bac to the 11925-11950 zone, I suspect traders will be looking to get in.

A break above the recent high, could also provide a pullback/mini-dip to get into, assuming the move continues higher.

03 H1 Dax Chart
03 H1 Dax Chart

Dax Intraday Chart

This is an interesting chart at the moment, because we have double bearish divergence, outside the Bollinger band. I don’t see too many of these signals, but I have built an indicator to signal these (divergence outside a Bollinger band) and I am interested to know just how strong a technical signal they are.

So this signal caused me to close the only new trade I made today for a profit of 20 points or so. I would normally sell this signal, but with the algo being bearish it just seems to be running into the wind.

05 Dax m5 Chart
05 Dax m5 Chart