Hello traders and welcome to the 22-11-2017 Dax Technical Analysis. Did you spot the perfect zig zag yesterday on the DAX? It is like a work of art, these basic tools are fantastic at times.
The Dax has finally ended its losing streak and broken above the minor bearish swings. This could well be a significant sign of further bullish price action. Therefore we remain bullish and are looking for spots to get long. You can see what I mean about the break of the minor swings on Chart 1 below.
We have had some really nice trades recently on DAX and FTSE, so congratulations to those who took them. Yesterday we closed a DAX trade for +108 points and a FTSE trade for +54. You can see more about the results here: https://goo.gl/N6yoGK . Just scroll down the page to find the spreadsheet. We entered this trade yesterday during the premium webinar. You can watch that webinar using the link above, to give an idea of what we go through in the morning.
Bulls
The long-term target remains close to 14100 and the minor swings (bearish) have now been broken.
There are a number of potential retracement zones that are interesting for a long, see chart 1. These retracement zones are likely to be targeted by the sellers.
The daily fork is still in play (chart 2 below) and according to Alan Andrew’s course, once price zooms through a median line and tests it (switchback) it often heads to the next median line. In our case, it would be the UMLH (upper median line parallel). This forms the majority of our current bullish bias.
Longs can now be seen as “trend following” trades, so a minimum of 3:1 reward required.
Bears
The price action yesterday was significant in that it took out the minor swings, but the move is probably exhausted now, so we can pull a fork through the recent pivots and reasonably expect for price to retrace back towards the median line of the new fork (chart 1)
We have also busted below the IB (initial balance) so we can also expect the price to close below that today.
Targets are likely to be the median line of the fork on Chart 1.
22-11-2017 Dax Key Levels
| KEY LEVELS | |
| POC | 13177 |
| Value Area High | 13213 |
| Value Area Low | 13077 |
| 14 Day ATR | 149.81 |
| 200 EMA | 12408 |
| Daily R2 | 13323 |
| Daily R1 | 13248 |
| Daily Pivot | 13136 |
| Daily S1 | 13061 |
| Daily S2 | 12949 |
| *These are FXCM numbers, not futures numbers. Please be aware that FXCM can often be 5-10 points higher than futures prices | |
22-11-2017 Dax Charts
2500 Tick Chart
- The minor swings (dash lines) have ended
- The light grey fork (bullish) ML was touched, now we see a retracement leg
- The black fork median line (ML) is the obvious target
- the horizontal lines are potential value areas to hold price for bulls.
- A break below the ML is a significant win for the sellers
22-11-2017 Dax Chart 1
Daily Chart
The fork is the most significant part of my analysis and I believe that we can still get to 14k+, time will tell.
22-11-2017 Dax Chart 2
Subscribe to DaxTrader and Join The Community
If you want 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:
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 Journal
This allows us to be transparent with our trading. We keep records of the trades and signals we send. We provide context for each trade, chart and reasons, trade management plans and updates here in the Journal.
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
The Chat Room
Participate in the member’s chat room with charts and ideas, improve your own analysis and pick the brains of other experienced traders.
The Webinars
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.
