The German DAX index remains bullish above 13,096. However, we are currently trapped in a short-term range. Last week we saw a solid support base form around 13,150, so I’m looking for that zone to hold again this week. The economic calendar is very light today, so unless we get a trade tariff thunderbolt, I am not expecting anything unusual.
DAX Analysis Video 18-11-2019
In the video this morning I talked about the composite profile for November. You can see on the chart below that the composite profile for November is skewed. I would like to see price action break above 13,300 and begin forming a more normal-looking profile. But have a look at the video for more information on that. The video also shows how to get a VWAP chart for the DAX.
DAX Daily Chart 18-11-2019
The daily chart has not changed a great deal from the last time we discussed this. I am still displaying two different pitchforks (bullish pitchforks). The black pitchfork is the main one at the moment. I am using this to highlight a potential long-term target (green box). It’s very ambitious and only time will tell whether or not it gets there. To understand more about this, I recommend studying a little bit about median line theory. If you are already a signal subscriber, then contact me and I will provide you with a median line ‘bible’ to use.
DAX Key Levels 18-11-2019
This morning’s rally past yesterday‘s high was short-lived. I have now retraced all the way back down to the point of control. In the video I said that if price breaks below the value area high then there is a high probability of the point of control being hit. These levels are excellent technical analysis tools because they are magnetic for price action. I am wondering whether if we break down to the 165 low from Friday, whether we see a balanced day today settling somewhere towards that point control.
| Method | Price |
| VWAP | 13211 |
| Point of Control | 13205 |
| Value Area High | 13230 |
| Value Area Low | 13193 |
| Pivot | 13224 |
| R2 | 13334 |
| S2 | 13115 |
DAX Trading Signals from 15-11-2019
On Friday I sent out to signals. Both signals were long is because I was ignoring any short trades. There were valid short signals in the morning from the Dax trading strategy. This is the main reason why I share the strategy. Because there will be situations where you might want to take a trade that I do not. So it’s better for you to know where the signals are coming from so you can decide whether to take a trade or not. I appreciate that not everybody has that luxury (of accessing the strategy on Sierra Charts) but I have produced a tutorial series that helps you get that for free.
Of the two signals that I sent out. One was a stoploss which lost 1% of the account and the other one earned a 3% gain to the account. Find out more about DAX trading signals. There is also trading history available on the website too.
