Good morning traders, welcome to the 19-04-2018 Dax Technical Analysis.
The major trend at the moment is bullish (see image 2). We are making a series of higher highs and higher lows. At the moment we seem to have printed the next swing high and it has tagged our forecast very nicely. So we now anticipate a retracement of some kind. I have shared my forecasts in the premium channel this morning, so members, be sure to check out that out.
19-04-2018 DAX TECHNICAL ANALYSIS – Morning Briefing
No briefing this morning, my voice is still not back to normal. Hopefully Monday we can start fresh again.
19-04-2018 DAX TECHNICAL ANALYSIS
Image 1 here shows a 250 tick chart with 625 marked out as a horizontal level from a previous day. I have two forks on this chart, one grey and one black. The grey fork was drawn from earlier pivots and is no longer active. The price action has broken out through the top of the UMLH (technically it’s ‘gapped’ out of the top). At the moment the price action is still following the lines of this black fork, but we expect that to break very soon. Notice how price tagged that 625 line again? Mark the level on the chart (it’s CFD pricing). So adjust accordingly if you’re on futures. It typically 5-10 points difference.
Here on image 2, I have marked out the major swings. I used the P1 to P4 ACR line set here to forecast P5 and it was a perfect forecast.
Although I have labelled the pivots 0 through 5, there are swings from further back which have been ignored, so I chose to use this labelling for simplicity alone. The beauty of market geometry tools like these is that the tools are very simple once you have learned to use them. They provide incredible insight into forecasting reversal areas. Learning these tools has quite literally revolutionised my trading and analysis. I am so pleased that I invested the time and effort to learn this material.
I appreciate that some of these tools may seem very technical, and the jargon may be confusing, I get that. But it’s like any language (French, German, Programming language), once you have learned some words and some vocabulary, you start picking it up. Before you know you are using them and discussing them and figuring it all out. I also know that most traders only trade for a bit of fun and have no intention of taking the next step in their career. If that’s you, no problem, just pick up bits here and there and you’ll be fine. However serious traders and those wanting to be professional and build a business, will be constantly investing in their development and learning this stuff should be priority number 1.
19-04-2018 DAX TECHNICAL ANALYSIS Charts
Look at this Zig Zag Balance Point in Image 3. It’s a great example. I won’t go into too much detail here about balance points or ZigZags or what they do and how you can forecast with them, but you will see here that when you dissect this bullish impulse leg in half, using a 50% line, the ZigZag Balance Point falls right on that 50% line. Coincidence? We don’t think so. Notice as well how the middle line of the ZigZag also has a mini zigzag within that? We like this example.
19-04-2018 Dax Key Levels
| KEY LEVELS | |
| POC * | 12594 |
| Value Area High * | 12605 |
| Value Area Low * | 12573 |
| 14 Day ATR | 187.9 |
| 200 EMA | 12524 |
| 50 EMA | 12392 |
| Daily R2 | 12693 |
| Daily R1 | 12645 |
| Daily Pivot | 12599 |
| Daily S1 | 12551 |
| Daily S2 | 12505 |
19-04-2018 Dax News
- Trump says he has been speaking directly with North Korea’s Kim
- Economist expect trade dispute with China to harm US economy
- US President Trump saying now he does not like the TPP deal for the US
- EU’s Tusk repeats threat that EU could retaliate against US tariff moves
- Merkel wants European Monetary Fund
- Erdogan calls for early elections in Turkey
- Bank of Canada leaves interest rates unchanged at 1.25%, as expected
- Fed’s Bullard (delusional): Global economy is in very good shape right now
- Pres. Trump: Will shrink US trade deficit with Japan
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