Good morning traders, it’s Monday the 2nd of March and time for today’s German DAX 30 analysis. The DAX gets back above 12,000 points, albeit temporarily. What a crazy run of price action of the past few days! The market would rip through small stop losses like they were not even there and I believe many traders got themselves into trouble trying to gamble for large gains. The market is jumping hundreds of points in both directions in an hour and these conditions will easily wipe out an account. You may believe that these are the perfect conditions to trade. And if you’re an experienced trader, it is. But if you’re not experienced, then it’s pretty much a game of chance, with little to no skill involved. Quite frankly, it’s gambling if you’re not sure exactly what you’re doing, and trading is not gambling.
So congratulations to those of you that banked large gains, commiserations to those that did not. The truth of the matter is this; if you didn’t catch a piece of the market, there is always the next session. Opportunities are provided all the time.
DAX 30 Review From Last Session
During the last session, we saw the DAX 30 find a session high of 12148 and a session low of 11712 giving us a range of 436 points. When you compare that to the average daily range of 278, you can see we were 158 points above the average which tells us a strong momentum day, which is exactly what we like to see when using the DAX trading strategy. Predominantly, after considering the previous day’s price action, it’s apparent we had a bearish session that ended up 168 points lower on the day.
Where Is The DAX 30 Heading?
The German DAX 30 index is clearly Bearish, showing a progressive series of lower lows and lower highs. The trend defining level is probably not worth noting, because volatility is so high right now. We can expect large moves in both directions whilst the markets continually blame the Coronavirus as the main culprit.
Research has shown that buying a coffee for your favourite DAX writer helps fight the common cold and headache. So help the cause.
[* Research was halted due to lack of coffee and no scientific evidence to support the claim. All claims are false.]
Important DAX 30 Levels
Looking at the key levels to watch today, watch out for the previous session Point of Control (POC) at 11903. Today’s initial balance is between 11988 and 12172, so watch for a momentum break of either of those two levels. The value area high is currently 11935 and the value area low is currently 11786. Here are some more levels to watch out for:
- The 5 EMA (Daily): 12290
- The 8 EMA (Daily): 12544
- The 50 EMA (Daily): 13170
- The 200 EMA (Daily): 12741
- The Daily Pivot: 11924
- The Daily R2: 12360
- The Daily S2: 11488
DAX Trading Strategy
With the massive amount of volatility in the market right now, following the regular strategy is going to be difficult, because our stop losses tend to be quite small (under 35 points) and the market can currently wipe that out in 30 seconds. So the strategy may require some temporary modifications and much wider stops – which means much lower risk. I’ve circled a couple of the better signals from the DAX 30 trading strategy below:
Another superb week last week on forex signals. The first half of the week was just outstanding with multiple trades hitting their target and really growing the account. The only negative was a slower second half to the week, giving back some gains. But the week finished up with a forex signal gain of over 6%, which for a single week is excellent performance! See our forex trading signal history here.