The DAX index is potentially setting up for an ACR line-set. This can offer some interesting trading opportunities.

In order to form this type of set up to form, you need three things. You need Action you need Centre and you need Reaction. This DAX analysis tool starts off with a centre line and for this, I am using the downsloping low-to-low trend line from the 60-minute chart. You can see the trendline connecting the circled lows. The action point was the high from Tuesday. Notice how the price action accelerated to that high? This would be considered as action. Often what we find is that for every action there is an opposite and equal reaction. So measure how far the action point moved away from the centreline, because the reaction point will move the same distance below the centreline.

I have written a previous article here on how to use ACR line sets on the DAX.

With that in mind, we are offered some potential downside targets. But I leave you to draw the line set on your own chart to work the levels out.

21-11-2019 60-minute and ACR

This morning we kept below last night’s close. The market continued to move lower breaking the low of yesterday as well. As we approached the European open, price action attempted to break back above the value area low, but failed, twice. As a result price action began consolidating around yesterday low and is now threatening to break again. If price continues to break a lower 13,000. If it continues to break below that, then the reaction that I talked about a moment ago is the next target.

Economic Calendar and News

The ECB policy meeting accounts are set to be published later. Check the economic calendar for the times. German steelmaker Thyssenkrupp missed estimates with a 1% increase in revenue. Washington and Beijing are struggling to agree on the details of removing tariffs “proportionally and mutually”. Beijing say they are continuing the dialogue on trade, but failed to offer any new information on the progress of talks. Asian stocks plummet too. So love it or hate it, the trade war continues to dominate headlines.

21-11-2019 economic calendar

21-11-2019 DAX Analysis Outlook

It seems less likely that we will have a bullish outcome today. So perhaps the bullish scenarios that I discussed in the video today are less likely now. However, we discussed the low volume void in the middle of the profile that you can see on the chart below. Price action often avoids trading inside a low volume area. Those areas act like a vacuum, repelling price. Price is often rejected by, or shoots straight through, the low volume area. So they would be the most obvious bullish outcomes today.

Watch German DAX 30 Index Trading, Technical Analysis & Market Commentary from TheDaxTrader from thedaxtrader on www.twitch.tv

21-11-2019 DAX Analysis Key Levels

MethodPrice
VWAP13127
Point of Control13162
Value Area High13176
Value Area Low13108
Pivot13124
R213255
S212993
21-11-2019 Key Levels

DAX Trading Signals

Yesterday we sent a DAX long signal to the trading signals channel. That takes this week’s gain to over 8% so far, from just TWO trades. Happy days. It just goes to show you do not need many trades to make a gain. Click the link if you would like to know more about DAX trading signals.


DaxTrader Index Signals, [20.11.19 11:41]
Type: BUY
Symbol: GER30
Price: 13100.50
Stop: 13088.20
Target: 13149.68
Time: 12:42
ID: 21488636
DaxTrader Index Signals, [20.11.19 14:24]
CLOSED TRADE
ID: 21488636
Symbol: GER30
Return: 4.02%
Type: BUY
Open price: 13100.50
Closed at price: 13149.93
21-11-2019 DAX Signals

Other DAX Technical Tools

This is the VWAP scanner which I discussed in the video.

21-11-2019 VWAP scanner