DAX Analysis DAX Strategy & DAX Signals
TECHNICAL MARKET TRADING
DAX Trading Results from the Signals and Strategy
Thursday Jan 14, 2021 The descending broadening wedge has broken to the upside and we have an upsloping supportive trendline visible on the lower timeframes. Overall, the market is in a short-term consolidation which is a negative for trend-following momentum-based...
Friday Jan 8, 2021After a pretty consistent momentum-based rally this week, today was pretty poor the market is threatening a pullback after breaking out from the ascending regression channel. The overall trend is still clearly bullish above the trend-defining level...
The German DAX Threatens To Break Range Support To The Downside as the stock market currently stand still. The Dax has been hovering around the 13,300 point mark for around four weeks, even if it had risen to 13,445 points in the meantime. On the one hand, the strong...
The modified Schiff Pitchfork in this example on the DAX starts from the 10th November. The 'c' point is on the 12th November and the resulting fork has contained price action ever since. The fork is upsloping so we still have a very moderate bullish trend, with a...
DAX 30 Trading Strategy 24/10/2020 Review Bullish session with the majority of the trade taking place above vwap. The initiative move happened before my trading session started and we see yellow deviation warning candles. So i'll avoid trading any signals to the...
On the German DAX, 13,000 is a key target this week. At the Eurex open we saw an immediate rally followed by rejection and it's likely that this level will be tested again this week. DAX Analysis - Daily Chart The DAX is bullish and the trend-defining level is 12205....
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This website started by providing daily DAX technical analysis content covering the German DAX 30 and other popular major indices. I started it as a blog to help keep me disciplined as a trader, which I now believe that I am! And from what I’ve learned, I can guarantee to you that gaining 10-years experience as a market analyst specialising in momentum trading gives you an incredible insight into trading the markets. In fact, I would say my trading is getting better with age, so if you’re coming here hoping to make it rick quickly, it’s not going to happen guys. You have to approach your trading like you would approach running a business. There are many moving parts to align in order to get the processes working smoothly for you. Trading signals could be one of those moving parts to add to your business.
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I typically open around 7 forex trades a day. Sometimes more, sometimes less and I trade all the major and minor pairs.
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Make Sure You Have Good Technical Analysis
If you are new to DAX analysis, or technical analysis in general, then some of the terminologies in the daily articles may not make a lot of sense. You may not be familiar with the technique or principles that I use, so please use the free technical analysis resources available on the site to help you learn how to trade the German DAX.
There are two different ways that traders study the market. We refer to these two methods as Fundamental Analysis and Technical Analysis. In this very short technical analysis introduction article, I want to help you understand the differences. So this article is a basic lesson for people who are brand new to trading. Traders with experience can perhaps skip this article as it’s likely that you are already familiar with the difference.
Fundamental Analysis Introduction
Fundamental analysis is a term used around forums and chat rooms. It’s generally referred to as a ‘catalyst’ or a ‘trigger’ for a move. But what is it?
Traders who use fundamental analysis, will often use and look at many sources of information. For example, they might study the economy, the company finances for each component of the German Dax, EU interest rates, EU and German government policy and political changes such as the election. They might spend more time watching the economic calendar for high profile releases such as the Markit PMI, or Inflation numbers, or manufacturing orders, unemployment numbers etc. The trader will use this information to paint a picture and from this picture they can begin to forecast where they believe price is going to move.
A trader using fundamental analysis does not only focus on the price.
Hint: The ZEW index can often be a very useful release to watch. When the released numbers are above expectations, it can be bullish for the Dax. The reverse is also true.
Technical Analysis Introduction
German Dax traders like you and me tend to be technical traders. Technical traders use technical analysis to focus on price action, or more specifically historical price action.
I use historical price action every day because I want to try to understand what has been going on with the Dax. The DAX analysis articles you find on this website, primarily use technical analysis
Sometimes I use technical indicators to help me with this analysis, other times I just read the price action.
I enjoy speculating and forecasting movements in future price action. So the main tool of a technical trader is the chart.
Fundamental traders are likely often going to take a longer-term approach to their trading. They are happy to hold a position through periods of volatility and sometimes they may go for weeks without holding anything. But holding positions on the German Dax can be expensive because a typical contract costs €25 per point. How many regular traders have the capital to hold on to a 500 point move at €25 per point?
TheDaxTrader.co.uk readers certainly tend to be more technically oriented so that’s where the focus of the next units is going to be.
Technical Analysis Introduction – Summary
The financial markets offer opportunities to traders. These opportunities come in the form of price action movement. Our job as traders is to try to learn what makes a market move and understand its behaviour as best as we can. Technical analysis and fundamental analysis allows us to gain a better understanding of the market.
To wrap up: this technical analysis introduction, is just a quick overview of the two different types of analysis. In the next article we’re going to look at the basics of Dow Theory which kind of forms the foundation of technical analysis. It will also provide some history and context which will help get you started.
If you are interested in learning more about how to trade the German DAX then read more about our DAX trading strategy. Our DAX trading strategy uses a combination of technical tools and techniques to produce profitable DAX trading signals. Try it for yourself.
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