16-12-2019 DAX Major Trend

The DAX has been bullish since the 10th of December with a progressive series of higher highs and higher lows. The current trend defining level would be the low from Thursday.

On Friday, we saw a strong impulse wave on open, which continued for the majority of the overnight session. We then saw a gap close and responsive buying at the bottom of the gap during Friday afternoon.

Looking at the futures charts, we can see that Friday had a lot of volume, relative to previous days and overall the market remains positive.

DAX Volume Analysis

Despite the significant impulse wave throughout the Asian session on Friday, the market rallied on very low volume. The Delta was positive all the way until the US session in the afternoon.

Even though the Delta turned negative during the US session, due to aggressive selling, we see the market hold at the bottom of the gap, suggesting demand and responsive buying. This would support a bullish continuation.

The US session then brought a huge amount of volume and carved an interesting range which may be difficult to break today.

16-12-2019 DAX Delta Analysis

DAX Trading Signals & DAX Trading Strategy

On the DAX trading strategy, there were multiple sell signals on Friday. The best signals came from the late morning session. And many of those would have gone on to hit target. Remember to ensure that you are never risking more than 1% of the account on any single trade. Use the trading size calculator to help you stay within those limits.

If you need any support in installing the strategy onto your Sierra charts, please let me know. Congratulations to all of you that did well using the strategy on Friday. Take advantage of our discount for annual membership on trading signals including forex and DAX.

16-12-2019 DAX Trading Strategy

What You Need To Know

Last week Boris Johnson won a big victory at the general elections, which opens the door for the UK to leave the EU by 31 January 2020. The FOMC and meeting brought no surprises; the Fed clearly signalled that it is firmly on hold over the coming year. The ECB meeting provided no policy changes either. The US and China look to have reached a phase-one deal, which, if confirmed, would support a gradual recovery in China and the global economy in 2020. This week, watch out for the PMIs. See the DAX chart for the economic calendar

16-12-2019 DAX Market Profile