Repeating what I said yesterday, this week will probably be the last week in which I am active with these articles, because I don’t enjoy trading during the liquidity drain over the holiday period.
12-12-2017 Dax Outlook
We have retraced back to the spot I discussed yesterday, highlighted here and so if the price action provides an opportunity, I may attempt a long. The context behind it is very simple; we have a fork that is conforming to the Andrew’s methodology. We reached a Median Line (ML), we held the test of the Lower Median Line Parallel (LMLH), we gapped the ML and now we are testing the ML from above. I am expecting for price to continue higher towards the Upper Median Line Parallel (UMLH). Nothing is guaranteed in trading, so it may fail. But that’s a move I am planning for.
These tools and this methodology is what we use in the DaxTrader Premium channels and I share some of this information in the free broadcast channel as well. To join the broadcast channel, download telegram messenger and use this link: https://t.me/joinchat/AAAAAEAypsW3Xet_6ngBlw
Today we had Zew, which was pretty much in line with expectations, so nothing really unusual there, however later we have the Draghi speech. We often see super Mario say something to create a bit of volatility, so perhaps just be cautious with any late positions this evening.
12-12-2017 Dax Charts
I like how price was holding these modified Schiff lines yesterday, however we have busted out of both sides today, so we can either buy the test of the top, or just ignore this one.
When you take an ACR line set (based on the Alan Andrews methodology) from points A B and C, you can see the bottom reaction line get a touch and hold the price. It’s adding a bit of weight to my bullish setup.
12-12-2017 Dax Key Levels
|Value Area High *||13178|
|Value Area Low *||13130|
|14 Day ATR||153.39|
|*These are FXCM numbers, not futures numbers. Please be aware that FXCM can often be 5-10 points higher than futures prices|