Hello traders. I hope you all had a good weekend.

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Ok, so looking at the news from Germany; Kurdish protesters clash with police at Düsseldorf airport. EON are taking over our RWE‘s renewables arm in a 20 billion Euro deal. A new German minister vowed to speed up migrant repatriations. Greece has freed the German TV journalists that were arrested at the Turkish border. There was a Berlin mosque hit by a suspected arson attack. And there is also an interesting article about a new type of airport city, being developed at Munich airport. However, Donald Trump and the pending trade war still seems to be stealing the headlines.

12-03-2018 Dax Analysis

The German DAX is currently bullish, but is overvalued in the short-term. We are printing higher highs and higher lows, and the trend defining level is currently around 12,200.

There was a gap open this morning, and that gap has closed about 50% of the time of writing this article.

We also see a coil, clearly visible on the hourly timeframe. This coil may offer a trading opportunity depending on which way to breaks.

If we examine the coil a little bit. The support line of this coil is currently a ‘push’ trading opportunity. A push trade is where price continually bounces off the line. So when it returns to the line, you can take a ‘push trade’. However, when price ‘expands’ through a push line, it provides a different opportunity so this is what I’m currently watching. An ‘expansion’ trade often has two scenarios. The first scenario is that after price expands through a push line, price returns to trade in the original direction of the push trade. The second scenario is where price expands through the push line, then returns to that break and kisses the original line goodbye.

So here’s something for you to look at. There are three types of trade setups that these coils can often create:

1 – The push trade

Price continually bounces off a push line.

12-03-2018 Dax Technical Analysis 1

2 – The expand and continue

 

12-03-2018 Dax Technical Analysis 2

3 – Expand and reverse

Similar to above, but instead of breaking back above the previous line continuing higher, it would kiss the line good bye and reverse lower

12-03-2018 Dax Technical Analysis 3