Dax Technical Analysis 25-05-2017

Hello traders, let’s begin the Dax Technical Analysis 25-05-2017 by carrying on from yesterday. We were looking at three main things yesterday:

  • SellLimit @ 12605 (H1)
  • Bollinger Bands are beginning to pinch (m5)
  • MACD about to cross center line (H1)

Sell Limit @ 12605 (Hourly)

The hourly chart looks very similar to how it did yesterday morning. The one difference is that we have had another test of trend support. However, we have not had a break in either direction yet. So this trade idea can carry over to today as well. I am already in a short position, so I am keen to see how this plays out. I would not be surprised to see this move continue higher, but I am still comfortable with the technical pattern.

MACD about to cross the centre line (Hourly)

I wanted to see whether the indicator would begin to point lower and break the mid line, but price has moved very little today. In fact, price has moved barely 50 points, it’s been very quiet. So once again, this one can stay on the watch list for today.

Hourly Chart - Dax Technical Analysis
Hourly Chart – Dax Technical Analysis

Bollinger Bands are about to pinch

The distance between the upper and the lower Bollinger band is only 110 points. The price has successfully closed that large gap from a few week or two ago. This opens up the possibility of a band break play. This type of strategy measures the distance of the two bands (perhaps I will build a customer indicator for that) and targets narrowing bands. Once a narrowing band is identified, it will draw a box around the price action range. It will then wait for a break of the range and a break of the Bollinger band to signal the move.

The question is, what distance (band difference) is optimal, what Bollinger bands settings do you use. How would you choose profit targets and stop loss levels. These are questions I should probably research.

m5 Chart - Dax Technical Analysis
m5 Chart – Dax Technical Analysis

Dax 15 minute Chart

So with price action being so slow, I thought I would look at a different chart. This is an example of one I sent to the broadcast channel yesterday. We have a triangle pattern emerging. We normally would see a reaction by now, but at the moment, nothing. Keep a eye on that.
Also keep an eye on a break lower.

m15 Chart - Dax Technical Analysis
m15 Chart – Dax Technical Analysis

Dax Technical Analysis 25-5-17 Summary

  • SellLimit @ 12605 (H1)
  • Watch for Bollinger band break – new strategy?
  • The m15 triangle pattern

Dax Support & Resistance

14 Day ATR121.28
200 Day EMA11546
Daily R212688
Daily R112666
Daily Pivot12639
Daily S112616
Daily S212590

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