Good morning traders. It’s Thursday which means it is bin day for me today. And our rubbish lorries come stupidly early. But back to the DAX; we have now seen nine consecutive bullish daily candles. This means that once again we have created a brand-new 2019 high. This begs the question where next for the DAX? I talked about 484 yesterday and pointed out why this level was interesting for futures traders.
| DAX KEY LEVELS | |
| CFD | |
| POC : | 12309.0 |
| VAH : | 12363.0 |
| VAL : | 12293.5 |
| VWAP : | 12300.2 |
| R2 : | 12457.9 |
| S2 : | 12139.1 |
| Pivot : | 12298.5 |
| High : | 12366.1 |
| Low : | 12206.6 |
| FDAX KEY LEVELS | |
| CFD | |
| Point of Control : | 12320 |
| Value Area High : | 12377 |
| Value Area Low : | 12297 |
| VWAP : | 12310 |
| R2 : | 12475 |
| S2 : | 12150 |
| Pivot : | 12312 |
| High : | 12379.0 |
| Low : | 12216.0 |
The One/Four Pivot
In the video today I was using CFD price action and that chart shows that there was another occurrence of nine consecutive bullish candles. However, on the futures chart you will see that the previous bullish run (at the end of March) had one bearish candle in it. Let’s put the major swing markers on the chart. Then let’s number those swing markers, starting from 0. If you draw a line from 1 to 4 you will see a downsloping line. Now take a parallel from that line and draw it back to the 0 pivot. Finally draw a second parallel line and place it and opposite distance away from that first line. This line set may provide a prediction for where the current rally “exhausts”. You may need to watch the video to see how I pulled the line set together.
However you can see what I mean from the chart below.
DAX Trend Defining Level
The trend defining level is currently 12 196. We remain bullish above that level. If we break below 12 196 then we should consider retracement zones. We can use a volume profile to show us where the previous high-volume areas were. These high-volume areas can be used as retracement zones. Mark out some of the zones on your chart.
Potential Long Idea
The profile for yesterday’s price action shows the value area in the top half. The point of control is towards the bottom of the value area. Yesterday’s price action does show the buyers stepped in around what the current daily pivot is today. The daily pivot is just below the point of control and could be an interesting spot for long. This would be an obvious trade and would leave yourself open to a trap. Perhaps it would be better to wait for some sort of divergence.
Dax Trading Signals
Carrying on from the article ‘how I am trading the DAX after Easter‘ A single trade yesterday for me on the Dax. The trade I took was at 9:36 in the morning. I went along at 12 263 and got out at 12 300. My original target was 12 324 (which would have hit) but I got out early. I decided to close the trade because we were trading way up above the deviation high and we were just started to break back inside. If you watch the video below you will see a bit more behind the thought process for exiting the trade. Overall I gained 2.47% to the account, so I am not unhappy with that. Congratulations to you guys that also took the trade.
