DAX (Germany 30) Trading Setup
DAX (Germany 30) Trading Setup
by: Colibri Trader
Dear traders,
The last two trade setups were not the best ones I have seen. The crude oil setup did touch the first target, but then it was rejected by it. From 45.80 oil has gone all the way up to 48.60. The other instrument I was watching for a potential short entry was AUDJPY. The daily candle was an evening star pattern. The pair did actually form an intraday setup to confirm the daily one. Unfortunately, it did not hold and has started reversing. I had an open position, which I have already closed, because I believe I might have entered a bit too early. No matter that AUDJPY has not touched its stop-loss, I lost confidence in the trade and decided to cover it up.
DAX (Germany 30) Trading Setup
Today’s trading setup is coming from DAX (Germany 30). That is an instrument I have been following for quite some time. You can see HERE my first post of a sequence of posts about it. Initially DAX formed a bullish pin bar two days ago, but I did not take it, since I believe that the overall mood has turned bearish here. That is why I was waiting for a bearish setup and it has started to reveal. There is a bearish rejection candles that formed on the daily timeframe. It looks like the bulls are starting to cover their longs. This coincides with a minor resistance area. Therefore, I will be looking for a potential short entry around 12280 and if price reacts rightly according to my intraday rules. If I initiate a short trade, I will be looking to place a stop-loss at around 12350. My first target could be around 12150. From then on, the next major support level is 12000.
Please beware that price might try to re-test 12350 one more time before diving. I will be extra careful around the open tomorrow morning.
Happy Trading,
Colibri Trader
p.s.
Check out my recent article on Contracting Triangles. I talk about different triangle patterns and how they can make you a better trader. Also, don’t forget to download the free spreadsheet, where you can see more real life examples of patterns and their outcome.
For anything else: admin@colibritrader.com
Hi Colibri,
I was watching price action last intraday session and was surpised to see it move opposite to the US indicies.
Looking forward a failed move back up to 12290 area would provide a good risk to reward short entry. But you would have to evaluate the candles once price got there.
* I’m also watching each sessions move according to momentum, do you think this can be used as a factor in guaging market sentiment ?
* In the above chart you’ve used different colours for the above R levels, what is the significance of this ?
Normally all R levels use red. If it is your personal preference I appreciate that.
* As you’ve mentioned “intraday trading rules”, are your referring to the said levels or or are you referring to looking at the next 4 hour candle close ?
I know I ask a lot of questions but in some cases the devil is in the detail, I might learn something this way.
Thank you
Hi Dan,
I am actually looking towards 12300-350 for a price action setup. Time will show if one forms, but for now price seems locked between minor support and resistance. I usually do not use momentum and rarely even RSI (as you would know). Mostly have been concentrating on S/R and price action on higher TF. Regarding the colours- don’t really pay attention to such details- they are just used to differentiate between S and R. Nothing important to be fair. Intraday rules are the ones I am using in my trading course, which you have taken. I am sure you know which ones I mean 🙂
Continue asking questions- the devil is certainly in the details 🙂
Hi Colibri,
12280 was an exacting entry for me, I used lower TF’s to watch P/A
5 and 15 min rejection area was difinitive and obvious so I entered short as the risk was low (perfect factors)
I was surprised it gapped up in premarket, well anyway it was in my favour.
This article alert contributed to my gain, your system works. I’ve added a few things I like to shape my own final strategy.
Being Friday I have ended the week on a stellar note …. very happy but completely aware that it can be short lived.
So this post is more expressing my gratitude toward you and for putting together everything that is Colibritrader.
Thank you 🙂
Hi Dan,Sometimes it is great to take a break on Friday. It seems like DAX is just on a minor support level and is taking a break. I hope you enjoy the weekend and keep up the great work! Get yourself something to remind yourself for the success! Once again- thanks for the appreciation and the nice words. There are just a few people out there that are expressing their gratitude like you. I think the world will be a better place with people being grateful for even small things. I am really grateful that you guys are out there! Happy Friday
Hi Colibri,
I know of persons that if they show gratitude they feel that is showing weakness.
I could never understand this.
The market has a way of stripping you down layer by layer, the jaded outlook that society offers you becomes the wrong fit in trading.
This is where the rubber hits the road, the subject either modifies his attitude / approach or perishes.
The GRAT attitude becomes the best option, it opens the door in the mind to see what the barriers really are. They stop blaming the market, they stop reading Marc Faber and Peter Schiff. They roll their sleeves up and get to work.
It is one of the most important shifts in the traders progress.
The process is the next step and for that look no further than colibritrader.com
Wow! That was nicely said now! Thanks for the good words. I am a firm believer that what comes around goes around. That is why the more good you do, the more you will receive back!
Hi Coloibri,
If Dax makes it back to 12330 area I will be watching the price action very closely.
Strong R level there.
Cheers
Hi Colibri,
Thanks for the analysis again. This one seems to be on the correction phase and potentially could go till 12000 level. In between the other targets will be 12140 and 12060.