13-03-2018 Dax Technical Analysis

Good morning traders. After a positive start in terms of price action, yesterday was a slow grinding day with a bearish flavour. We saw a 100+ point bullish move first thing (including the gap) but spent the remainder of the day trending lower until the gap was closed. The market then ranged for the rest of the session closing slightly below the open.

13-03-2018 Dax Related News

A quick roundup of the major German headlines. Winter is not over yet as polar air masses are heading to Germany this weekend. German car makers are the biggest global spend is on electric cars. Peter Feldman was re-elected as mayor of Frankfurt. And arsonists attack Turkish community centres and businesses across Germany.

The economic calendar is fairly light today as far as European releases are concerned. There is the Economic and Financial Affairs Council meeting running all day, so there maybe updates relating to that. The highest impact news today comes from the UK and Canada. The UK release the Spring Forecast Statement and the Bank of Canada Governor is speaking this afternoon.

The big news could be tomorrow with multiple ECB speeches.

13-03-2018 Dax Swings Update

The current major swing high is 12604 and a major swing low is 11731
The minor swing high is currently 12482 and the current minor swing low is 11974

On the 60 minute chart, we have the pitchfork drawn from the three recent major pivots. Notice how the price has zoomed the median line and then returned to test the median line. This follows the work of Alan Andrews. Let’s see whether price remains above that median line today.

13-03-2018 Dax Charts

Which of these three ‘types of trade’ will most closely fit the price action of the current Dax move?

We have a pretty well-defined range here on the 4m chart, so we are looking for price to break one of these levels today. We will also look for these levels to provide either support or resistance to the price action on the other side.

13-03-2018 Dax Trade Ideas

Come and visit the page to see the current thinking

Here is the current standing for the BB RSI strategy. One trade idea from that strategy yesterday, which was a sell pretty early on in the session. The price action came close to the target, but did not quite reach it. Stop losses should be at breakeven.

This forward testing began on the 20th Feb and there has been 30 opportunities so far. Each idea would risk 1% of the balance and look for a minimum of 3:1 reward. The current standing is +35% return to the account.

13-03-2018 Dax Key Levels