Good morning traders, thanks for reading the 18-04-2018 Dax Technical Analysis and news update. Having a look around some of the main news items from yesterday
- Germany April ZEW survey current situation 87.9 vs 88.0 expected
- ECB’s Hansson sees more confidence on inflation developments
- Germany’s Scholz says Europe must avoid escalation in trade dispute with US
- UK’s Hammond expects record high employment to help boost UK productivity
- IMF leaves 2018 and 2019 global growth estimates unchanged but boosts US and Europe
- NAFTA nations to meet Thursday in Washington but say a deal is unlikely
- Fed’s Evans says 2.5% inflation “would not put the Fed’s nose out of joint”
- Fed’s Bostic: Businesses are confused by the direction of US trade policy
And the economic calendar for today looks like this:
18-04-2018 Dax Levels
| KEY LEVELS | |
| POC * | 12589 |
| Value Area High * | 12625 |
| Value Area Low * | 12492 |
| 14 Day ATR | 198.37 |
| 200 EMA | 12524 |
| 50 EMA | 12384 |
| Daily R2 | 12746 |
| Daily R1 | 12667 |
| Daily Pivot | 12544 |
| Daily S1 | 12464 |
| Daily S2 | 12342 |
| *These are FXCM numbers, not futures numbers. Please be aware that FXCM can often be 5-10 points higher than futures prices | |
18-04-2018 Dax Technical Analysis
There will be no video today because my voice is not yet ready. I still have a cold and it has affected my throat and voice.
Using the first chart below, the swings are currently still in play at the moment. By that, what I mean is the trend is active with higher highs and higher lows. When the market is trending it makes sense to follow the trend. This does involve making decisions to potentially buy at a top, and that can be quite difficult to be comfortable with. Notice the small blue dashed lines? They are representing the swings.
I have labelled the first swing back and I have labelled the second swing back. I will be watching whether or not these levels hold on the way to creating further higher highs.
This next chart is one I have used for a couple of days now.
This chart is showing how you can use a particular tool (ACR line set) to forecast where a P5 pivot may form. In this example, we are very close to that potential P5 target. Being close to the target does not necessarily mean that we will get a reversal at this level, but it is possible that traders will be taking profit. So add that to your watchlist.
The ACR line set uses a centre line and then two equidistant parallel lines either side of it. It follows Newton’s law that for every action there is an opposite and equal reaction. Roger Babson did a lot of work studying how this was relevant for the financial markets and his work (and Alan Andrews afterwards) is a big part of the philosophy I follow.
So for this chart, my centre line was pulled from P1 through P4. You will see from my labels that I was speculating a P4 before it formed and now we can see that it was a valid forecast.
If you want to learn more about these tools and how they benefit your trading decisions, come and join us in the premium channel. See more below.
About DaxTrader Premium
If you are serious about wanting to develop as a trader and adopt a professional mindset then you are at the right place.
If you want to get excellent analysis and indications on the high probability setups, then come and join the DaxTrader community. We have a number of active members contributing towards the DaxTrader community with setups, charts and ideas. As a premium member you will have access to:
DaxTrader.co.uk Reviews
See what people are saying about DaxTrader.co.uk by visiting the TrustPilot page here:
https://uk.trustpilot.com/review/www.daxtrader.co.uk
The Chat Rooms
Participate in the various member’s chat room for Dax, Forex, Cryptocurrency, Algorithm Trading with charts and ideas, improve your own analysis and pick the brains of other experienced traders.
The Webinars & Webinar Library
We have some excellent content to share in the webinars to help you understand the strategies and tools used by Dax traders. These strategies and tools are incredibly effective on the DAX and quite easy to start to understand. They don’t require expensive software either. The experience available in the webinars is excellent with guest webinars weekly.
Live Trading Signals
When a trade opens on our account, we share the information directly to the signals channel. We provide information including the entry, the stop loss, the target and the date/time. Premium members get access to DAX, FTSE and occasionally S&P500.
Our software sends the signals directly to your phone using Telegram messenger and thanks to our engineering, the delay between us opening a trade and you receiving it to your phone, is around 0.6 seconds.
The Charts (live)
I broadcast my charts for the majority of the day, which you can access and see what we are working on. You can view the charts from a tablet or smartphone as well as a computer
