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
The modified Schiff Pitchfork in this example on the DAX starts from the 10th November. The ‘c’ point is on the 12th November and the resulting fork has contained price action ever since. The fork is upsloping so we still have a very moderate bullish trend, with a consecutive series of higher highs and higher lows, but there is not a lot of momentum.
The member’s site keeps a daily record of my intraday trades, you will need to be a subscriber to access it.
Follow the chart at the top by clicking the link below
DAX Pitchfork Break to the upside
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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.