Good morning traders. Fridays candle was a top-heavy inside bar with both the open and close creating new highs based on Thursdays price action. But despite closing at new 2019 highs, price action failed to break above the Thursday high and this morning we have already broken below Friday‘s low suggesting that buyers are looking for value at lower levels. During the webinar I ran a test to see how many times we’ve seen bullish inside day candles at the top of a 5-day consecutive bullish run. Here’s the basic code for Sierra Chart users. (Add a ‘Color Bar Based on Alert Condition’ study and copy/paste this code in to the ‘Alerts’ tab:

=and(
h<h[-1],
l>l[-1],
c[-1]>c[-2],
c[-2]>c[-3],
c[-3]>c[-4],
c[-4]>c[-5],
c[-5]>c[-6],
c[-6]>c[-7],
)

08-04-2019 Dax Technical Analysis 1

Dax Technical Analysis Video

Dax Hourly Technical Analysis

On the hourly chart I have drawn a black fork connecting the three most recent minor pivots (blue dashes). Notice how the failed attempt to break above the major high happened at the upper medium in parallel. And also notice how the low this morning on this chart found the median line. The most recent price action this morning, at the time of writing, points to a failure to re-take 12k. So this is an interesting battle that’s developing.

08-04-2019 Dax Technical Analysis 2

Dax Volume Profiles

Now if we zoom in a little further and take a look at the individual profiles this morning’s we can see that price action has already broken below the value area low from Friday and remains below the point of control. We have found support this morning from the value area low of Thursday which is also the value area low from the composite profile that we can see on the right. This profile is a five day composite profile. So I’m looking to see if this low is broken or whether 12,000 will be reclaimed first.

08-04-2019 Dax Technical Analysis 3

Dax Key Levels

08-04-2019 Dax Technical Analysis 4