Good morning traders and thank you for stopping by to read the 27-11-2018 Dax Technical Analysis.
The new intra-day trading article is up: https://thedaxtrader.co.uk/week-48-intra-day-trading-results-2018/
Despite only trading the afternoon session, there were a couple of decent opportunities. So this was a positive from yesterday.
Yesterday was clear breakout & trend day, but unfortunately for us, the breakout occurred within the first hour of trading, if we include the gap as well. We stayed way above the profile from Friday, with no attempt to retrace. So today, we see yesterday’s profile sitting right above Friday’s.
Yesterday in the article (https://thedaxtrader.co.uk/26-11-2018-dax-technical-analysis/) we started discussing the “three types of trade” and related it to the current daily chart for the German DAX. With yesterday’s close of 11380 (CFD), we comfortably broke the downsloping high-to-high trend line that seems to have controlled price action for the past couple of months. This would be considered the ‘expansion’.
The next step is see how we react to any pullback towards that line. (Go back to yesterday’s article to review the three types of trade)
The chart below shows the majority of November’s price action. On the right hand side of the chart you will see a composite volume profile. The composite volume profile was drawn using the visible price action. The darker grey shaded section of the volume profile is the value area of that price action. Right now the main observation is that we are back inside the value area, however we have found resistance at a previous high of 418. We spiked into the 418 earlier this morning but higher prices were rejected.
|Point of Control :||11332||7042||24631||3173|
|Value Area High :||11359||7049||24669||3182|
|Value Area Low :||11315||7016||24528||3170|
|Camarilla Breakout (Bull)||11455||7090||24728||3199|
|Camarilla Breakout (Bear)||11306||7008||24332||3161|
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