Yesterday’s price action on the German DAX remained completely inside the range of the previous day. We traded in an 80 point range, which is less than half of the average daily range of 174. So we are winding up for a breakout soon and this means bad news for my trading strategy. I need momentum in the market, not compression.
In the DAX technical analysis video this morning, I talked about fading the VWAP deviation bands in situations like these. So this is another strategy I will monitor today.
DAX Key Levels
|Point of Control||13410|
|Value Area High||13432|
|Value Area Low||13394|