Thursday Jan 14, 2021
The descending broadening wedge has broken to the upside and we have an upsloping supportive trendline visible on the lower timeframes. Overall, the market is in a short-term consolidation which is a negative for trend-following momentum-based strategies.
Another difficult day in terms of trading conditions, but I managed to claw back some of the earlier losses with the final trade of the day, so it wasn’t completely terrible. The DAX daily signals gave two stop losses and the FTSE daily signal was closed at breakeven. And on DTI I had two DAX stop losses (both longs) and FTSE gave me two longs of which one was closed at breakeven and the other ran all the way to 8pm, where I closed it for +2.8%.
Four stops at -1% each and one winning trade for +2.8% left me down on the day overall.
Wednesday Jan 13, 2021
Tuesday Jan 12, 2021
Monday Jan 11, 2021
The German DAX remains bullish above the 5th January low, ~13,566 and will remain bullish if we hold that low AND break to a new high, which means a new all time high is required to sustain the bull trend.
As for trading, the morning signals that I release in the premium channel didn’t yield too much today. The DAX short was stopped at breakeven and the FTSE short was stopped out. I didn’t re-open the FTSE short, but you’re welcome to, because in this case it would have hit target on the second attempt.
So whilst the morning trading signals didn’t yield too much, the trading strategy was amazing today! Congrats to you lot using it.
Friday Jan 8, 2021
After a pretty consistent momentum-based rally this week, today was pretty poor the market is threatening a pullback after breaking out from the ascending regression channel. The overall trend is still clearly bullish above the trend-defining level from the 5-Jan low.
Trading wise today, it was pretty mediocre with one loss from the daily signals, but four losses from the DTI trading strategy, of which three came from the DAX. The trading conditions were not ideal, there was no significant momentum. So it was a five stop loss day. It happens.
Thursday Jan 7, 2021
Contrasting day compared to the superb trading signals from yesterday. The morning signals yielded one stop loss on the FTSE and an evening close on the DAX. On the DTI, it was an ugly day, the market bias indicator constantly fluctuated between bullish/bearish – terrible conditions for a momentum strategy like mine. I took a DTI DAX signal, which was stopped out and the second DAX signal from DTI was ignored due to the price action being yellow and failing to retrace back to vwap. The FTSE DTI signal was stopped at breakeven.
Wednesday Jan 6, 2021
What a fantastic day of trading the DAX and FTSE today! Everything I entered worked out, which is not always the case. Two daily signals were filled (both the longs) and they smashed target! The DTI produced two longs as well, and they had the same result. Overall four separate trades hit their target to produce a very strong double-digit percentage growth day!
Tuesday Jan 5, 2021
Quiet day on the daily signals today, only two filled of which one was stopped at breakeven (the German DAX trade) and the FTSE signal was stopped out. Whereas on the DAX DTI trading strategy, I had two stop losses.
The German DAX Threatens To Break Range Support To The Downside as the stock market currently stand still. The Dax has been hovering around the 13,300 point mark for around four weeks, even if it had risen to 13,445 points in the meantime. On the one hand, the strong euro and on the other hand the talks about the Brexit trade pact are negative factors that are currently still in focus. In addition, the focus is still on news about the corona virus. The Dax remains in its week-long sideways range.
A break below the lower median line parallel would be interesting.
While the US tech indices are again reaching record highs, the Dax is continuing to slide sideways. Investors are nervous that the struggle for a Brexit package and stricter corona measures are weighing on.
Pivot Support and Resistance
DAX Technical Analysis Articles
These are daily DAX analysis articles. I have been watching the German DAX index every day since February 2014, when I quit my job to become a full-time trader. During my quest to become a professional market analyst and trader, I learnt as much about technical analysis as I could. The DAX is my favourite equity index to trade because it responds well to technical analysis tools such as market profile, swing analysis, volume profile, RSI divergence and various other technical indicators.
Effective DAX Technical Analysis Techniques
The most effective technique to improve your own DAX analysis is to always keep the DAX index price action at the front of your analysis. Always understand how the market moves, and what the most recent trend-defining level is.
I know this analysis sounds simple, but it’s the most overlooked technique by traders and market analysts. There is a common mistake to try to be too advanced sometimes, and this causes us to miss the obvious.