Good morning traders!
Strong bullish day yesterday and we are approaching the Monday high once again after closing just above the underside of the trend channel support on the daily chart. This is the highest close we have seen since mid September and momentum is building, especially if we take out and hold the 11200.
EURUSD is pulling back after a strong rally and the USDJPY has also bounced from the threatening break down through its wedge pattern formation. October is normally a pretty strange month for trading and I currently don’t have a biason the Dax, there is no trend to trade. If I had to pick a side, I would be bearish and favour the risk off scenario.
For today, I have highlighted a couple of things: watch a break or rejection from the Monday high. Watch the reaction to the daily pivot, I might consider a buy order from the daily pivot. I find the stochastics on the hour chart interesting, although the alligator shows no sign of slowing just yet, so it seems further consolidation and ranging is possible.
A had a few trades close yesterday from the DaxTradeRSI EA, based on the 5 minute chart. I had it working on a simple 80/30 RSI with 14 periods, which favours a more bullish bias and it gave me a couple of winners. You can follow the results on twitter @daxtradersignal. I am already short from one of these trades because the RSI crossed 80 and came back below again suggesting it may come back. We’ll see. I am going to start using the software on my binary options to see whether it can be useful. I don’t often trade binary so I am not certain which expiries will be best, but I am thinking of trading off the 5m chart with either a 30m or 1 hour expiry. I will start with Dax and maybe expand it to forex as well. If you are interested in getting involved, let me know.
Dax Support & Resistance
|200 Day SMA||10640|