Dax Technical Analysis 23/03/2016 part 2

Good morning traders!

We have rallied a hundred points this morning, squeezing some short positions, but making a swing position short very attractive. Nothing is guaranteed in trading, so there is no guarantee that this swing short will pay off, but if we are targeting 9550 and getting it at 10075, then that’s over 500 points and we’re risking under 100. That’s a great Risk:Reward in my book.

The major factor holding me back from releasing it as a signal is the MASSIVE positive divergence signal on the hourly chart (RSI). Look at the low of March 10 and March 17 then look at the RSI lows. That positive divergence most often results in a strong rally. So this could actually be seen as a good Bullish setup to take advantage of. Especially if we manage to break above the high of yesterday. My first target would be a move to the 10150-10180 zone and a break above that opens up a move to 10300.

But overall, I am neutral and waiting for a breakout. There are easier trending markets to trade in Forex at the moment, GBPUSD for example.

Download DaxTrader RSI EA Version 3 – Trial

I realised that I put up separate files for the indicator and the Expert Advisor in my previous article, but it’s easier to just bundle them together, so that’s what this file is. This trial expires on the 31st March, so download both files here:

[purchase_link id=”5396″ text=”Purchase” style=”button” color=”blue”]

I will try to contact you to collect your feedback on how the system works for you, so if you’re happy to help me iron out any bugs, that would be appreciated.

I will release another tutorial video as well to help people with using the system. Just remember that purchasing the current system at £54.99 is version 2. Version 3 will be officially released next week.