Dax Technical Analysis 17/04/2015

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Good Morning Traders!

Well I took a hammering today and had all my positions closed out. I learned a painful lesson about complacency and greed mixed up with over leveraging, pretty much the mistakes I made when I started trading. But overall I hope you guys had more success yesterday.

My trading has been unacceptable this week because I have been deviating from my trading plan, blinkered by the bull trend and chasing gains blindly. It’s time for me to take a step back, get on track with my trading plan, stick to solid risk management and move on. I will wait for another opportunity to go long and trade other markets in the meantime. I still will not short this market.

So we dumped around 250 points yesterday and crashed through the daily S3, we have taken out the line in the sand, broken back through the neckline of the breakout from last week and taken out 12k as well. It’s a pretty significant close on the daily chart. Could we feasibly attribute this sell off to profit taking? An unwinding of positions? Part of a normal healthy correction? I believe yes personally, but who knows how deep it goes, 5%, 7%, 10%?

Looking on the 4 hour chart below, we start heading into multiple floors of support reaching down to 11574, so I find it unlikely we break those easily and on another note we have to go back to June last year to find the time when we had more consecutive negative candles than we do right now. Friday loves to give a reversal, so I could be tempted at buying today. Regards the macros; Greece tensions seem to be affecting risk sentiment, the dollar is weighing heavy and oil is moving, but ECB are still providing the stimulus.

Dax Support & Resistance

No levels today, I locked myself out of my google sheet.

Dax Charts

We have broken the neckline and 12180 and 12k line

2Dax Daily Chart
2Dax Daily Chart

Look at the consecutive bar indicator here, we have to go back to June 2014 to see numbers like those.

3Dax Intra-day Chart (4 hour)
3Dax Intra-day Chart (4 hour)

We have nestled below the weekly S1 and created a fractal (4-hour fractal) so I added a parallel to the chart

4Dax Intra-day Chart (30 minute)
4Dax Intra-day Chart (30 minute)
5Dax Intra-day Chart (5 minute)
5Dax Intra-day Chart (5 minute)

 

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