23-04-2018 German DAX30 Index Technical Analysis

Good morning traders, I hope you all enjoyed your weekend and welcome to the 23-04-2018 German DAX30 Index Technical Analysis.

We completed the Dax Morning Briefing today around 8 am and the video is at the bottom of the article today.

23-04-2018 German DAX30 Index Technical Analysis Roundup

• Global debt at high levels: $164 trillion to be precise…
• Carney’s concern over a mixed bag of UK data
• Fate of the single currency to be decided by forthcoming ECB meeting
• OPEC’s Barkindo responds to Trump: “We saved the oil industry”
• Eurozone April advance consumer confidence +0.40 vs -0.10 expected
• ECB’s Weidmann: We have had indications recently that Q1 in Germany was ‘not so brilliant’ and we’re in an economic boom
• ECB said to see scope to wait for July meeting to signal end of QE
• ECB’s Draghi: Confidence in the inflation outlook has increased
• Fed’s Kashkari: I’m more concerned about the flattening of the yield curve
• Another sad day for music: EDM superstar Avicii found dead
• UK press says PM May might have to accept permanent membership of customs union
• North Korea pledge to suspend nuclear & missile tests – effective immediately

23-04-2018 German DAX30 Index Technical Analysis Charts & Analysis

Remember to always draw your swings out on the chart and understand which swing you are trading. Understand the difference between impulse legs and reaction legs. Understand the difference between major swings and minor swings. Once you have identified those, you can start to look at price action at bar level. If you need help with understanding this, then send me a message on Telegram @daxtrader.

In this chart below, we have three tools on display:

1 – Simple swing markers (ignore the number ‘5’)

2 – Black multi-pivot lines (MPL). I drew the higher one first and then duplicated it for the lower one. It’s a parallel. The two lines together create a channel. MPLH (multi-pivot line parallel) channel.

3 – Modified Schiff fork. This fork is drawn from the very first three pivots, which can be identified by the first three blue swing markers on the left of the chart. I have chosen a modified schiff because the structure of these three pivots is a ‘valley’ formation. Modified schiff forks are good tools to use on mountains and valleys.

Notice how the modified schiff and the MPLH channel are both containing price action. This allows traders to adopt a range trading strategy.

However, we will be discussing how to use the MPLs as centre lines when price decides to break out of this channel. Which way will it move? How far will it go? The tools can help us answer some of those questions.

So we believe that we are currently in a bearish reaction leg overall.

The swings are bearish, but price action is contained within a well-defined channel. The longer the channel remains, the stronger the multi-pivot lines will be and the more likely they are to be good centre lines for other forecasting tools.

23-04-2018 German DAX30 Index Technical Analysis Key Levels

23-04-2018 German DAX30 Index Technical Analysis Morning Briefing

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