24-11-2017 Dax Technical Analysis

Good morning traders and welcome to the 24-11-2017 Dax Technical Analysis. Yesterday we opened two trades, a DAX long and a FTSE long. We managed to move our stop loss into profit (12993 and 7400 respectively) and those levels were tagged during the premium webinar this morning. So only a small profit today. However, a new DAX long was opened in the same webinar this morning.

See the premium channel trade history here (scroll halfway down the page)

Dax Price Action (Yesterday)

I explained in the article yesterday that I was starting to form an idea based on the work of Alan Andrews. The idea is based on the Action Center Reaction methodology. I will check in this idea next week. We also discussed whether the 966 would be a level to watch closely today.

Yesterday the story was nice and simple. After the initial wash of the 966 level that we discussed in the previous article we could see a nice clean trend higher with higher highs and higher lows for much of the first half of the session. There was a good example of a Fibonacci expansion here as well. See the [A] [B] [C] points on the chart, approximately halfway through the day? The [D] point would be the 100% expansion (AB = CD) and the price reached that level and reacted.

The second half of the session was very quiet, probably because of the lack of volume from the US (the thanksgiving holiday enjoyed by many traders).

So the questions for today are

1. Can we take out 13050?
2. Will we continue to compress and trade sideways?
3. Is this failure to break 13050 a sign for further downside?

24-11-2017 Dax Outlook

The major swings are still intact and are bullish above 11868, we need to take out the all-time high to continue the trend. The minor swings are still intact (for now) and are bullish above 12904, we need to take out 13212 to continue the trend. If we look at the bar level price action, there is still a bullish trend in play. This mini trend is bullish above 12958, but we need to take out 13052 to continue the trend.

Today may not see a huge amount of action, but we are looking for option 1 and we are already currently long.

See the trades here: https://goo.gl/N6yoGK

Bankroll Management Rules

• 3:1 reward on every trade (MINIMUM)
• 1% risk per trade (Based on how much a loss will cost you)
• Use a stop loss on every trade (ALWAYS)
• Set and forget

Example

Every winning trade will earn you 3% and every loss will cost you 1%.

1% of a €10,000 account is €100 – this is the cost of your stop loss.

If your trade is using a 20 point stop loss, then you can open a trade for a maximum of €5 per point (€100 / 20 points)

23-11-2017 Dax Charts

Daily TPO 

• Jagged profile from Wednesday has plenty of low volume nodes to trade into
• A break above the yesterday high could open up a move to 13140

4m Chart – Bar Level Price Action

• Bearish fork median line hit and washed. If 13050 is broken, the UMLH (upper median line parallel) is the obvious target
• The light grey fork underneath is still in play here and the Median line is also a valid extended target
• A tag of the light grey median line will confirm a break of the 13212 high and bring it to the front.

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