Good morning traders. The DAX flies higher in the latter parts of the session. In fact most markets closed with strong gains on Wednesday. Perhaps traders digested remarks from Federal Reserve Chair Jerome Powell. The Fed head discussed he believes financial stability risks are “moderate” and that the largest lenders are able to withstand an “extremely severe downturn”, providing a boost to sentiment.
Yesterday was a poor day for my trading, it was a loser and I walked away early in both the morning and afternoon session. You can read more in the trading diary here: https://thedaxtrader.co.uk/week-48-intra-day-trading-results-2018/
Or see the results here (Began recording 19th November 2018):
DAX 30 Was Range Bound
The main issue I has is that for the majority of the morning session and early part of the afternoon session, the DAX was trading in a range. I could not find any momentum and as a result, I lost a few stop losses.
What I do find interesting is the way the value area from Tuesday defined the trading range. Have a look at the featured image above. Notice the circled areas of the price action? They are circling the spots where the price action tested the value area, but rejected higher prices. The majority of the session was spent oscillating around the point of control. This tells me we have a clear balance point here, this is an area where price is happy doing business. So i’d expect to see a return back there.
Is The Dax Extended In The Short-Term?
We will soon find out.
Have a look at the way the session finished last night using the chart below. Not only have we closed above the deviation high we have closed so far above VWAP that we’re getting the lime green warning (10x ATR higher than VWAP). There are never ay guarantees in trading, but a retracement would be more likely here.
|Point of Control :||11319||7012||24912||3180|
|Value Area High :||11351||7047||25200||3183|
|Value Area Low :||11294||6994||24734||3167|
|Camarilla Breakout (Bull)||11486||7124||25691||3225|
|Camarilla Breakout (Bear)||11328||7028||24979||3181|
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