DAX Analysis DAX Strategy & DAX Signals
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DAX Trading Results from the Signals and Strategy
Perhaps 13,300 is too ambitious for the DAX? We've made a number of attempts at breaking higher, some attempts actually pierced the level; but resistance is a zone and not a specific price point. We can clearly see some resistance here. So far, the German benchmark...
The DAX targets 13421 POC (point of control) as it builds on last week's bullish momentum. The global economy is rebounding quite strongly from the worrying recession in the second quarter, thanks to the reopening of economies and also the second virus waves not...
The German DAX to reach pre corona levels? It seems that way! That's the most likely outcome of the recent rally in my opinion. Good morning traders, it's Thursday the 10th of September and time for today's German DAX 30 analysis. DAX 30 Review From Last Session...
DAX Climbs But Remains Cautious. Despite the seasonal expectations for the market to break lower, the DAX found bullish momentum yesterday; comfortably taking out the 13,000 level; testing Friday's high and we see the price action continuing to find higher levels this...
The DAX prepares for consolidation phase and traders should probably keep an eye on the US markets as well. This is seasonally a bearish period for the DAX and as the technology sector in the US continually takes a hit, perhaps it won't be too long before the rest of...
Yesterday's session started off with three losing trades for me (-1% for each trade), split over the DAX and FTSE. These trades were longs and did not work. However, when I started to trade the other side, then we see three signals from yesterday earn +10% to the...
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This website started by providing daily DAX technical analysis content covering the German DAX 30 and other popular major indices. I started it as a blog to help keep me disciplined as a trader, which I now believe that I am! And from what I’ve learned, I can guarantee to you that gaining 10-years experience as a market analyst specialising in momentum trading gives you an incredible insight into trading the markets. In fact, I would say my trading is getting better with age, so if you’re coming here hoping to make it rick quickly, it’s not going to happen guys. You have to approach your trading like you would approach running a business. There are many moving parts to align in order to get the processes working smoothly for you. Trading signals could be one of those moving parts to add to your business.
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Make Sure You Have Good Technical Analysis
If you are new to DAX analysis, or technical analysis in general, then some of the terminologies in the daily articles may not make a lot of sense. You may not be familiar with the technique or principles that I use, so please use the free technical analysis resources available on the site to help you learn how to trade the German DAX.
This DAX support and resistance article is one which I encourage you to return and read multiple times because it’s a common technique in trading and will help your understanding of the German DAX’s price movements at particular levels and zones. Don’t be fooled into thinking that you know it already as technical analysis should always be practised.
As you may already know, the price of a financial instrument like the German DAX is ultimately determined by supply and demand. Put simply, if the demand for a financial instrument is increasing in relation to supply then the price will rise. Whereas if the demand for a particular instrument is decreasing in relation to supply, the price will fall.
So when we see an uptrend on a chart, we are seeing a period of time where demand has continuously increased in relation to supply. On the other hand, when you look at a downtrend, we are seeing a period of time where demand has continuously decreased in relation to supply. what we’re going to look at today is price levels where the
In this article, I want to look at price levels where the supply-demand equation reverses and price is expected to stop moving in the direction it was moving. So let’s look at the definition of DAX support and resistance and see a couple of examples on some charts.
Support is the price level of a particular instrument where there is enough demand should price reach that level to keep prices from falling further.
So in this example, you should be able to see a pretty good example of support. You can see that price has touched that level multiple times and then actually bounced off of that. Once it bounced, it never returned to touch it. So in summary, that support level is held.
Resistance is the price level of the German DAX where there is not enough demand, should the market reach that level, to keep prices rising further. It hits a wall and struggles to make any further progress.
Here, you can see here that price touches this resistance line multiple times. These first two tests are enough to establish a resistance line. However, the third time is a pretty good confirmation of that. So I hope you can see there the difference between DAX support and resistance. In this example, you can also see that the price did not break through that level.
DAX Support and Resistance (Trend)
These examples were for prices in a ranging market, one without a clear trend. However, DAX support and resistance levels do occur in trending markets too. So the easiest way to plot them is to use trend lines. Here are a couple of examples on the German Dax. In the uptrend here you can see the price coming down, touching that uptrend line multiple times. On the other hand, the downtrend is the reverse.
Finally, in our introduction to DAX support and resistance, we come to trend channels. These can form a very simple strategy for a trade as the price can respect these levels. When the price bounces from trend support and reacts at a parallel level above, it forms a channel. This is known as a price channel. Price can often bounce between these levels. A very basic strategy is for traders to look for selling opportunities around DAX resistance and buying opportunities around DAX support.
A trend channel on the German DAX that has a positive direction, is often referred to as a Bull Channel. A trend channel that has a negative direction, is often referred to as a Bear Channel.
DAX Support and Resistance Summary
There are many types of support and resistance, but in this introduction article, we cover off just a few of the main ones. Open up a German DAX chart and see how many examples you can find.
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