DAX Technical Analysis
Week 28 2019

Technical Analysis, DAX Outlook, Economic Calendar, Key Levels and Current Bias

Wednesday 10th July 2019

What Direction To Trade The DAX Today

I am personally looking for longs today. My logic for this is that we have seen the major reaction wave find some significant support and I would like to assume that the overall bull market will continue. I would like to see some kind of pivot component or change in behaviour to confirm the resumption of the bull market, but nothing is perfect in trading. My algo will be switched to longs, let's see what happens.

DAX direction today

The DAX Levels I Am Watching

Below you will see the chart for the are the DAX levels that I am watching including the two different scenarios, the chart below that will provide the key volume based levels to watch.

DAX direction today DAX direction today

DAX Strategy Outlook

I am going to use my DAX trading strategy to direct me to entries today and the algorithm will be turned on, therefore you DAX trading signal members will get notified of those trade entries. The strategy is currently in sell mode (at the time of writing; 7am), so it will wait until there is a flip. There is also no guarantee that the market will find upside today.

DAX Technical Outlook Video


Tuesday 9th July 2019

DAX Trading Strategy

You should always refer back to the fundamentals of your technical analysis education when looking for the answer to this question. Never overlook these important basics, because everything we do as traders is based on this foundation.

The DAX is a trending market. There are three 'movements' for a trending market, all of which may be in progress at one and the same time, on different timeframes. The first, and the most important, is the major trend, or the impulse wave: the broad upward and downward movements known as bull or bear markets, which may be of several weeks and months in duration. The second, and perhaps most difficult to anticipate is the secondary 'reaction' wave, the intermediate trend: for example an important decline in a primary bull market (pullback) or a rally in a primary bear market (bounce). The reaction legs usually last from a few days to a few weeks. The third is the daily fluctuations or minor trends and these are used to locate your entries.

Major DAX trend chart for Monday 9th July 2019

Best Way To Trade The DAX

Always know which phase the market is in (impulse or reaction). Once you know which phase or leg you are trading, you can choose the appropriate strategy (follow the trend, buy the dip, sell the rally) to trade the market with. Buy the bullish inpulse waves during a bull market. Sell the bearish impulse waves during a bear market. Buy the reaction legs during a bear market and sell the reaction legs during a bull market.

I have been trading the DAX professionally since 2014 when I quit my job as a financial advisor to do this full-time and I stick this fundamental logic and thought process everyday, I recommend that you do the same.

Intermediate DAX trend chart for Monday 9th July 2019

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DAX Technical Analysis Video

There will be no video today as I am at the hospital in the morning. Nothing serious. Far from serious actually, all will be revealed soon, there is good news to be announced. So take a look at the video from yesterday:

The DAX has put in a major impulse wave of 482 points lasting 120 days and reaching a high of 12648. In trending markets, after an impulse wave often comes a reaction wave (referred to as a pullback). We may currently be at the beginning of a major reaction wave. The obvious target would be the gap close. But as this may seem so obvious, and as the majority of traders are often wrong, I would not be surprised to see the market miss that target.

Minor DAX trend chart for Monday 9th July 2019

Monday 8th July 2019

DAX threatens a bounce

The afternoon session saw a series of lower lows and lower highs, which recently failed. The failure has now created a potential pitchfork play. If this play comes off, we can perhaps look to target the median line (ML).

DAX threatens to rally after breaking series of lower lows and lower highs

What Happened To The DAX Today?

We have traded in a 90 point range, but ultimately no progression has been made to the major reaction wave we discussed in the dax analysis video from earlier. For further downside progress here, we need to see a break below 482 which will confirm that the intermediate trend has a series of lower lows and lower highs. Perhaps a good DAX strategy would be to employ a 'rally-shorting' strategy.

What is the dax doing today?

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DAX Technical Analysis Video

The DAX has put in a major impulse wave of 482 points lasting 120 days and reaching a high of 12648. In trending markets, after an impulse wave often comes a reaction wave (referred to as a pullback). We may currently be at the beginning of a major reaction wave. The obvious target would be the gap close. But as this may seem so obvious, and as the majority of traders are often wrong, I would not be surprised to see the market miss that target.

Major DAX trend chart for Monday 8th July 2019 Intermediate DAX trend chart for Monday 8th July 2019 Minor DAX trend chart for Monday 8th July 2019 Economic calendar for Monday 8th July 2019