05 Dax m5 Chart

Dax Technical Analysis 23/03/2017

Hello, traders!

Much of the headlines have been taken up with the recent terrorist attack on the UK which happened yesterday afternoon in London and I am sure many thoughts are now with the families of those who were unfortunately involved. It’s a crazy world.

Yet more polls are being released showing Macron having a majority in the French election, this will please the Euro bulls. As for the Dax, it was a pretty average day, we traded in a 100 point range which is pretty much exactly the 14-day average true range, we gained around 0.2% and formed a very modest bullish hammer around a major support level. I am personally watching out for a break above the high from yesterday (11949) which could open up a move to retrace some of the losses on Tuesday. If this scenario plays out then targets range between 11975-12025, which has confluence with the daily R2 (pivot point indicator) and the mid-line from the Bollinger band on my 5-minute chart.

If we are unable to break the high of yesterday or worse we appear to break but get rejected and the bearish move continues (bull trap), then it may confirm that the high of yesterday is now resistance (previously this zone of 11925 was supporting price) and this is the new lower high of a short-term downtrend, perhaps on the way to target 11710. So if this scenario plays out, I am watching a break below the low of yesterday. Without falling into the trap of ‘analysis paralysis’ and searching speculatively for a setup that I like, rather than observing what is actually happening, I am wondering whether another scenario could be a bear trap. Let’s assume we break below the low of yesterday and bears jump on the selling bus, if the oscillator doesn’t also make a lower low, then we have conditions of bullish divergence at support (on the hourly chart) and that would be a significant signal. So any shorts should probably be mindful of that.

Dax Hourly Chart

03 H1 Dax Chart
03 H1 Dax Chart

Dax Intraday Chart

The Bollinger signal from yesterday worked out very nicely, didn’t it?

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05 Dax m5 Chart
05 Dax m5 Chart

Dax Support & Resistance

KEY LEVELS
Open11911
High11949
Low11850
Close11935
Range-99
Change0.20%
14 Day ATR101.43
Daily R212007
Daily R111968
Daily Pivot11908
Daily S111869
Daily S211809
200 Day EMA11093

DaxTrader News

I have created a Forex (and commodities and Indices) broadcast channel to provide alerts for setups that come from my new indicator. It’s a great way to test the signals and keep a track of them, so if you’re interested in being involved with the ‘experiment’, come and join that channel (on Telegram). If you’re interested in receiving live trading signals for the Dax, come and join the community. Three months of signals will cost £94 and can be purchased using this link: https://www.paypal.me/DaxTrader54/94 . In the meantime come and join my broadcast channel on Telegram messenger, it’s here that I broadcast additional Dax analysis and messages to my readers and subscribers. For the rest of the month, it is very easy to get access, please download the Telegram messenger (from www.telegram.org) and then click this link: https://telegram.me/daxtraderforex