Dax Technical Analysis 14/02/2017

Happy Valentine’s Day Traders!

Much shorter article than normal today. Yesterday I was expecting a bearish day, after being bullish EURUSD, that didn’t work out so great. The EURUSD trade is actually still open, but I have no Dax trades open currently. My Dax

My Dax algo made three sell trades yesterday, two were losers, one was kept overnight and closed out this morning for a small profit. I spotted two problems yesterday. The first was that I manually told the algo to close Friday’s buy trade rather than letting it manage the trade by itself. Second, I manually told the algo to favour bearish trades, rather than allow it to work normally. There is a pattern there, my manual intervention was the problem.

Today, the settings are back to automatic and the algo is bullish and shall be left alone.

Dax Daily Chart

Strong bullish day yesterday, approaching the 11900 resistance. With the US indices progressively printing higher and higher numbers, you may be forgiven for believing that the Dax will follow, by ignoring all the potential future headwind on the horizon of course. Looking on the economic calendar, there is ECB tomorrow and US CPI with a speech from Yellen, watch out for that.

01 Dax Daily Chart
01 Dax Daily Chart

Dax Hourly Chart

Two areas have been marked on the H1 chart from yesterday, the first was a bearish looking doji at the top of a strong rally signalling a selling opportunity, followed fairly quickly after by a collection of bullish looking dojis signalling that actually bulls remain in control. An OCO trade could be an option for traders, those looking to trade a breakout of this small range, but are unsure which direction to go.

03 H1 Dax Chart
03 H1 Dax Chart
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