Dax Technical Analysis 13/07/2016

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Good morning traders!

Dax Technical Analysis Video

Dax Technical Analysis Summary (Yesterday)

Another strong bullish day, touching 10,000 and once again taking out the daily R2 from the pivot point indicator. But is the trend coming to an end as we have broken out of the bullish trend channel, towards the end of the session, trapped just underneath the 10,000. We are just under the 200 daily EMA and we have previously failed to stay above that the last three times we attempted it.

The Premium DaxTrader Signal were light yesterday as most of the action took place first thing and I missed it because I didn’t trade the first hour.

Dax Technical Analysis Outlook (Today)

If we get a clear break of the trend channel and begin a retracement then (on top of the daily pivot levels) I am watching 9916, 9847 and 9800 as potential support levels. If we take out 9800, we can go and test 9700 again.

If we get a break above the high of yesterday, then I am watching for a reaction to the daily 200 EMA and whether we fall back inside the recent trend channel.

The economic calendar is fairly light (unless you are trading CAD) with only FOMC member Harker speaking.

It’s difficult to find a good risk:reward set up from current prices, so I am looking for longs from lower levels.

We are still bullish on the hourly Heiken Ashi, so I am likely to continue to favour a bullish template on my RSI, which is 90 40 and 8 periods. I use a 17 ATR profit target, 3 ATR stop loss, 30 point trailing stop and 15 point trailing step. I follow the trend of 500 period MA on the 5 minute chart, trade between 6am-6pm GMT, close all trades at 8:30pm GMT, maximum of 1 trade open at any time and switch the choppy filter on. The video above makes reference the DaxTrader RSI Expert Advisor Version 4, which is not yet available, but you can use the DaxTrader RSI 3.2.