Dax Technical Analysis 29/03/2016

Good morning traders.

If you’re think that this article is similar to Friday, then you’re right, because it’s the same article. I had forgotten that the market was closed on Friday so the market has not changed since.

We’ve taken out and closed below the previous three days open/close range
Still plenty of support below with previous resistance zone 9750-9850 proving difficult to break
Liquidity drain about to begin with the long weekend
I am still favouring the short side as speculative sentiment turns bullish
Break below 9750 confirms a new low and an end to the current bull trend

I am watching for rejection of the daily pivot and continuation of our move lower, so I am looking for selling signals. My automatic trader will be switched on tomorrow and sending signals to twitter for anyone who is interested.

I also mentioned that Thursday was a nice day for shorting yesterday using my new RSI version 3 system, this one used a 50:50 RSI level with a medium moving average on the 5 minute chart, trading only in the direction of the trend, so it avoided the noisy signals and shorted the decent opportunities.

The system is still being tested, so keep your eyes peeled for the release towards the end of the week.