DAX (Germany 30) Trading Setup
DAX (Germany 30) Trading Setup
by: Colibri Trader
Dear traders,
The trading idea from last time did perform as expected. The trade entry I had in mind was not triggered. This was a good coincidence, because the price is reversing now and I believe that there is not enough bullish momentum to propagate the price even higher. The resistance area at 0.8850 has been met and it looks stronger than expected. So far, the best trade among the last 3 trades seems to be the USDCAD short. It looks like the DAX trading setup is not as bearish as expected, but for that in a moment…
DAX (Germany 30) Trading Setup
The bearish resistance was met with a high dose of optimism. The price has bounced back on track is has finished the daily n positive territory. The daily candle is a bullish engulfing and it bodes well for all the longs. It is a trend-following setup. The only setback is that the resistance level at 12,875 might lead to some hesitance amongst the bullish traders. Apart from that, I can see some bullishness in the lower-timeframes and this makes me think we could see a new leg up. A possible long entry could be at 12,775. A stop-loss could be placed just under 12,655. From my observations seem that a good price target is the level of 12,875 and then 13,000.
Happy Trading,
Colibri Trader
P.S.
Have you recently missed a trade you wish you hadn’t? Check out my article on how to escape that in the future HERE
If you have any questions, please let me know on: admin@colibritrader.com
Hi colibritrader,
I’ve not had the time I had before, hence the lack of posting.
I don’t have opinions anymore, a trade setup is either there or not. Thinking past this seems to blur the process.
I only focus on 2 indicies now, Aus200 and Germ30
Hope you are well.
Regards
Hi Dan,
You’ve been missed around by Harry and me 🙂 I have been looking at DAX this morning and managed to get into a long trade and now looking at the next resistance area at around 12,880. I agree with you that opinions are detrimental, but what we do here is objective observation in terms of price action. Never traded AUS200 myself, but DAX is one of my favs, too. Keep us posted how your trading is going.
Hi colibritrader,
Thanks
Hopefully Dax can reach past R and onto the round number. Hope it’s no the case of when the US int rate is made the market tanks as I am long Dax too.
Yes opinions as in “mine” I am very careful what I think, it shows in the PnL
As far as my own trading goes, I’m at the stage of increasing size again but have not been able to maintain in the past, having to go back to 1 and 2 lots.
In time I’ll get there, it’s so very hard to watch a gain turn into a loss then know you have to add after a same direction signal presents.
Nerves of steel … eh !
Hi Dan,
We are getting very close to that level. It has been a fast rise. I must agree with you that the most important thing is the P/L and everything else is secondary. Obviously, a lot of traders are missing that point and concentrate on improving their strategy or blaming the markets for their misfortunes. I have done this myself in the past- it takes some time to master the game. Let’s see where this DAX trade will take us- I am already looking at the 13,000 mark. I am also checking my short USDCAD trade, which might hit 1.3000 level.
Hi colibritrader,
My suspicions have been confirmed, “int rate out market tanks” BUT this time I took my profits when I had them.
In some cases being prepared for the “unexpected” really helps. The market is there to give you what you want.
In my trading process I’ve learned to be grateful for what the market offers and if my little head and big head start thinking the same thing I know I’d better listen.
I’m happy to re enter longs if price action supports it.
In my case I get it wrong 70% of the time but as Bill Lipshutz says, You have to figure out how to make money being right only 20 to 30 percent of the time. I luv this quote.
I’m almost certain you booked profits on some of your position
Regards
Hi Dan,
the one by jesse livermore sounds to apply here
“the obvious rarely happens, the unexpected constantly occurs” 🙂
-harry
Hello Harry,
Thats a good one I like it 🙂
Hi Harry,
That is a very good quote! Seems like a few words can encompass a whole universe! I have posted another article on basic FOREX as requested 😉 hopefully it is not too late
Hi Dan,
You are absolutely right. As we wrote yesterday, I was looking at the resistance level, where price action started to print some hesitance. Stop-orders being taken and limit orders, too. There was not enough momentum for this position to continue the uptrend. The US session brought some more volatility. Combined with the previous two statements, it led to more bearish orders piling up and logically, the price started falling off. Today, I posted on Twitter a bearish engulfing on the 4H, which was a clear sign that the price is turning tide and who knows… maybe for the longer term. It is funny how our stance on this instrument changed the last few days three times, but sometimes the most important skill of the good trader is to be flexible enough and not getting carried away by opinions. Good job that you secured some of the profits:) and yes- Bill is a great guy!