Hello traders. I hope you all had a good weekend.
If you missed the outlook webinar this morning, you can join the free one next one next week. We covered many major markets (including indices like DAX, SPX500, FTSE and Dow. We covered major forex markets, Gold, Oil and cryptocurrencies too. We look at basic outlooks and understand some of the swing trading tools we use. Trading setups and strategies are discussed in the Premium Webinar straight after, but you’re welcome to join the free one before it. It’s normally 8am UK time.
Here is a recording from today
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.
2 – The expand and continue
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