DAX, Price Action

By Claus Andersen

  1. November 2018

 

15 min chart:

 

This week we saw a familiar reversal pattern in the DAX. A head and shoulders pattern that indicates that control in the market is shifting to the bulls. How far will it go, I don’t know. But on these time frames price is now always in long. Last in the article I will write about the areas I’ll pay attention to the coming days. Remember US is closed Thursdays due to Thanksgiving. That could give a quiet day in the DAX.

Trade 1:

 

On the 15 min chart this is not a really good setup. The bar had gone to long for me to enter. I traded this move on the 5 min and it went really fast.

 

5 min chart:

 

On the 5 min chart price had traded down and up. Deep pullbacks is often a trading range context. The signal bar that formed, it traded up really fast, and there was no doubt that bulls was going to try to push higher. It was a second entry long and a double bottom. Best part of this trade was that it went in the green really really fast.

 

Trade 2:

 

On the 15 min chart this was a good second entry sell signal. The trendline was broken and I expected a test of the low before long. It went further and bounced at support area. Nice trade that one.

 

On the 5 min chart price trade into resistance. Price had just broken a trendline and often after a break price tests the low again. In this case price set up a really nice second entry on the 15 min chart. A bit risky since it was not a lower high. I looked at the final bull push as exhaustion into resistance(magnet) and a failed BO above the small rading range day.

Areas to look for in coming days.

On the 15 min chart I drew in lines of support and resistance. The red areas is resistance, where I will look to get short if price action sets up. The green areas are support and buy areas. Be patient and wait for price to give a signal.

 

The BO above the head and shoulders pattern has a target of around 11.360. If the BO will succeed we will have to wait and see. There is some prior support at the thin red line. That has me a bit concerned that price could bounce downwards from there.

 

Price action has again shown that it works to predict reversals. I love it. Today I made a 12th. consecutive green day. Looking forward to the future and more green days.

 

There will be a progress report soon. If you subscribe to the youtube or facebook channel you’ll see it there.

 

Have a nice trading week.

 

Claus Andersen

 

 

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