DAX Analysis DAX Strategy & DAX Signals
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DAX Trading Results from the Signals and Strategy
Is the DAX heading for all time high? As the Dax jumps to its highest level since the beginning of the Corona crisis, we have to ask ourselves whether the DAX is heading for its all time high. Consistent gains have helped the Dax rise to a new high this morning...
A bullish start to Q3 for the DAX as we begin September and the German stock market again creeps over 13,000. The question now will be whether new capital continues to come back into the German equities, or whether we see more of a risk off tone from the markets....
DAX Breaks Below 13,000 but monetary conditions remain soft. Until this morning we were following a bullish trend until price broke below the trend-defining level of 13,009 and currently trading around 12,950. Perhaps the market is looking for value at lower levels,...
Wage compensation continues in Germany. The German government has agreed to extend its wage compensation scheme to the end of 2021. The compensation scheme was intended to last 12 months, but given the negative effects from Covid, the government agreed to extend it in...
Wirecard are gone and Delivery Hero have arrived. Well, they've been around for some time, but they take Wirecard's place on the DAX. The company is growing rapidly in the Middle East, Asia and North Africa. In Europe only in Northern and Eastern European countries....
Good morning traders, it's Thursday the 20th of August and time for today's 20-8-2020 German DAX 30 analysis. DAX 30 Review From Last Session During the last session, we saw the DAX 30 tag a session high of 12995 and a...
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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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I send out daily trading signals for the German DAX, FTSE and Forex. I also share my DAX trading strategy, which will help you generate your own trading signals and trade the way I do. The DAX trading signals normally arrive by 9am into the members-only channel on Telegram. Click below if you want to learn more about DAX signals.
I typically open around 7 forex trades a day. Sometimes more, sometimes less and I trade all the major and minor pairs.
I’m so confident with my forex trading that I don’t even need to advertise it, so here are the headline numbers: 125% return in 2019. Average 7 signals per day. I get a 2:1 reward to risk ratio on most trades.
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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.
No matter what time frame you decide to trade the German DAX, it’s important to always have a big-picture overview of what the market is doing. Multi time frame analysis allows you to have this big-picture view. When your technical analysis is lining up on multiple time frames, then the chances of the analysis being correct increase greatly.
Multi time frame analysis | 5-minute chart
Let’s look at a 5-minute chart on the German Dax index. This chart is a popular chart for DAX analysis. Let’s say we’re looking for something very basic, perhaps a trend in the market so we can go with the momentum. It’s clear on this chart that the price is going down. Suppose that we want to enter a trade, just on this chart, to follow the direction of the trend. We would want to sell here and follow the momentum.
Using this chart alone, we have a potential DAX trading signal to sell.
But let’s get a better idea by looking at a longer-term chart, perhaps the hourly chart. We want to find ‘confirmation’ of a similar trend on this time frame. So let’s zoom out, but keep the trend line on the chart for reference.
Multi time frame analysis | Hourly Chart
You can see that on the hourly chart, the trend is going up, not down. It’s a clearly bullish trend on this time frame. So is it still a good idea to sell, like we saw on the previous chart? Let’s go back to our original purpose. We want to open a trade that goes with the momentum. So in this example, no. It’s a bad idea.
We have one chart saying sell, but a higher time frame saying buy. Let’s look at one more time frame, let’s look at the daily chart. There is no trend line on the hourly chart, so I will mark the area we are looking at. Now we clearly know that the market is going up. The price is actually in a very strong uptrend here, which goes back over six months. So if we want to follow the momentum, a sell is not a good idea.
Multi Time Frame Analysis | Summary
So to summarise, looking back at the 5-minute chart, we were about to place a sell trade because of the downtrend. But now we may want to seriously consider changing our mind as the daily trend is very clearly in the opposite direction. Multiple time frame analysis, in general, means looking at long term charts first. Perhaps even a weekly or monthly chart to get a good feel for the overall trend in the market and then work your way down. You are looking for trading opportunities on the shorter term charts, which go with the longer term charts.
This method of multi time frame analysis is very simple, but it works for nearly all forms of technical analysis. The technical works especially well on the German DAX. For example, support and resistance levels. If a support or resistance level is showing up on multiple time frames then it’s considered much more valid than if it’s just showing up on one. Support and resistance levels on longer-term charts are much more valid than on a shorter term chart.
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