The Dax is bearish below 9750 and the retracement to enter a new short is/was around 9500, providing that the trend continues. The volatility today could destroy any trade setups. So my personal advice is don’t trade until after the ECB, if the sentiment is dovish, then bearish pressure will continue.
The most common sentence I am hearing at the moment is something like: The selling momentum on the DAX has been huge in recent weeks, with the DAX down over 12% in 2016 alone.
I read that the move has now hit the 76.4% Fibonacci retracement of the big 8355/12,390 rally at 9308. The big question is whether this Fib level will be able to provide the consolidation and ultimately key support area that we saw in August/September, when the DAX hit lows of 9338 and 9325.
I am current at an all time high on my trading account, which I am delighted with, but I have personally had some trading challenges to cope with over the last few days so I have turned off my signals and my automated trading account is not allowing people to follow. My trading challenges involves up-ing my trading volume in terms of position sizes, trading in shorter periods and ultimately being able to cope with the larger numbers (psychologically). It’s been a real learning curve again. I think I have just been lucky at the moment, so I need to really tighten my trading plan.
The reason for the changes come from being comfortable with my analysis and as I have been pretty conservative for the last 18 months whilst building this site, I am now looking to step up and raise my goals a little, perhaps invest a little more and build a decent account.[warning]ECB day today – try to get out of your positions[/warning]
There are plenty of opportunities to trade today, but I think right now we are probably looking to coil up ready for ECB
No charts today, I don’t have any trade setups out there. Just watch your leverage and don’t gamble.