DAX: Channel Up intact. Bullish.DAX is bullish on its 1D technical outlook (RSI = 61.639, MACD = 2020.300, ADX = 35.161) but only neutral on 4H, indicating the significant upside potential it has. Right now the price found support on the 4H MA50 and is rebounding. This suggests the the previous correction is over, the bearish wave of the two month Channel Up bottomed near the 4H MA200 and the 0.5 Fib. We turn buyers again on DAX, aiming for the -0.382 Fib (TP = 19,900).
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GER30 trade ideas
Wed 2024 10 09 - Long||| Stats |||
Stats Day:
** 08:00 H4 double color, - NO
** 09:00 H3 Doji other side, - NO
** 09:30 VOLD ???, AD ???, Senti +38, Agio St ???, Lg ???, - Short
** 09:45 VOLD ???, AD ???, Senti +20, Agio St ???, Lg ???, - Short
Stats Week:
** Thu US CPI: 14:30,
** Mon Morning rule - pending,
** Tue return to W1 trend and not a W1 trend change - pending,
Stats Month:
** Oct turn,
** Mid Nov end,
Stats Year:
** US Election,
||| Trade Taken |||
Trade Taken:
** Time frame:
* H3
** Time:
* 03pm,
Set-Up:
** Trigger for trade:
* Momentum Long,
* Senti +20!,
** Mom Width:
* 4 candles - strong,
* 6 candles - strong,
** Mom Type:
* 2nd directional - risk at 1st or last Mom turn,
Risk Reward:
** Risk:
* Initial Turn,
** Target:
* R 1:1 as range increased possible, and against short indicators,
* VOLD AD unavailable today,
DAX H4 | Falling to 50% Fibonacci SupportDAX (GER30) is falling towards a pullback support and could potentially bounce off this level to climb higher.
Buy entry is at 19,126.47 which is a pullback support that aligns with the 50.0% Fibonacci retracement level.
Stop loss is at 19,000.00 which is a level that lies underneath a pullback support and the 61.8% Fibonacci retracement level.
Take profit is at 19,337.11 which is a pullback resistance.
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DAX (GER40) - Structure broken, positive trend towards ATHMy scenario from yesterday was right. We have broken the structure, so I assume that we will continue to climb upwards. The price will probably go down a bit and build up liquidity before going up. The 19200 and 19100 marks are particularly important as support. From a purely technical perspective, the DAX could also fall back a lower towards 1900 without breaking the structure. Sometimes it also likes to break the structure with a spike, only to trigger the SL and then move fast upwards. So you should keep an eye on that. If it breaks 19200, it will go to 19100 relatively quickly and probably rise steeply from there. In my opinion, these levels are a good entry point for long positions with good RR.
How to Assess Market Sentiment EffectivelyAs a financial markets trader, understanding market sentiment is crucial. Here's how I guide my students to assess it effectively:
1️⃣ Embrace News Analysis: Staying abreast of economic events, geopolitical news, and central bank speeches provides insight into market sentiment shifts. You need to know what is driving the markets YOU trade. Technicals are a rear-view mirror.
2️⃣ Sentiment Indicators: I like to use sentiment indicators like the COT report, Fear & Greed Index, and VIX, which help gauge market mood, but my favorite way of checking out session sentiment at a glance is analyzing safe haven flows, equity positioning, antipodean and Chinese mood and the DXY (as long as it is correlated).
3️⃣ Social Media & Sentiment Analysis: Monitoring social media platforms and sentiment analysis tools allows me to tap into the retail trading community's collective sentiment.
4️⃣ Price Analysis: Analyzing price patterns, trading volatility, supply & demand and market breadth helps identify underlying sentiment behind price movements.
5️⃣ Commitment to Data-driven Decisions: I stress the importance of basing trading decisions on data rather than emotions. Objective analysis is key to avoiding impulsive moves. I let others play the guessing game, forecasting always with a 50/50 chance of being right... I follow and ride market movements.
6️⃣ Spotting Divergence: Identifying divergences between market sentiment and price trends can signal potential reversals or continuation patterns. Establish what a deviation from baseline sentiment looks like and then be on the lookout for those clues.
7️⃣ Context Matters: Assessing sentiment within the broader market context ensures well-rounded analysis. Sentiment alone may not dictate trends so I like to also gauge the strength and momentum of sentiment to see if the time horizon matches my trade idea's scope.
Understanding market sentiment arms us with a valuable edge in forex, indices and commodities trading. Simple as that.
GER40 Retest: Bullish Signals AlignThe GER40 is currently retesting a significant support zone following a clear breakout. The ongoing pullback is testing the 0.382 Fibonacci retracement level, aligned with a key trend line, providing additional confluence for a bullish outlook. Furthermore, the absence of any bearish divergence strengthens the case for a potential upward move.
DAX Bottom FormingThe DAX exceeded the 19000 mark yesterday and initially stabilised above it. In my opinion, the last low was only undercut in order to close the gap from 26 September. This clears the way upwards again. We are now seeing a bottom forming here and I suspect the price will test the 19000 level once again. By the end of the week, however, it should move upwards again towards a new all-time high. However, there remains a small chance of a continuing downward trend if the 19000 level is broken. Therefore, only work with a small SL if this point is used as a long entry.
Tue 2024 10 08 - Short||| Stats |||
Stats Day:
** 08:00 H4 double color, - Short
** 09:00 H3 Doji other side, - NO/Long/Short
** 09:30 VOLD ???, AD ???, Senti ???, Agio St ???, Lg ???, - Range/Long/Short
** 09:45 VOLD ???, AD ???, Senti ???, Agio St ???, Lg ???, - Range/Long/Short
** 16:15 VOLD ???, AD ???, Senti ???, Agio St ???, Lg ???, - Range/Long/Short
Stats Week:
** US CPI: 14:30 - pending,
** Mon Morning rule - pending,
** Tue return to W1 trend and not a W1 trend change - pending,
Stats Month:
** Oct turn,
** Mid Nov end,
Stats Year:
** US Election,
||| Trade Taken |||
Trade Taken:
** Time frame:
* H4
** Time:
* 08am,
Set-Up:
** Trigger for trade:
* 8am H4 double color Short,
Risk Reward:
** Risk:
* Gap close,
** Target:
* R 1:1 as against D1 trend,
GER40Markets seem to be in a situation where the risk of continued buying is becoming the riskier option. I'm seeing failed rallies to the high side throughout some of the European stock indices such as Germany and France. Currently France looks like the weakest. I'm in a German position but I'm considering also entering a short on France. My stop loss would be around 7620 which protects the position from the last four daily highs. I'll be observing price action around the daily highs and lows of Germany as I feel like a small bounce coming off a good night in the United states could carry us through into the stop loss territory. Asian markets dumped heavily today and Europe is not off to a great start. I'm trying to find some good news or reasons to buy the United States in case I am missing something. Markets are dropping as I am writing this so I'll take a pause and pick the country that best suits a short position. I'm being cautious that holding multiple short positions on country stock indices increases my overall risk.
It takes at least two days on average for price to drop the 1.5% that I would like to see on this trade. The risk to reward is only 1 / 3 but I would like to reach the number 3 sooner by adding to the position somewhere along the way.
DAX Bullish ContinuationDAX price seems to exhibit signs of overall bullish momentum. A potential new ALL TIME HIGH may form as the price action may form a credible Higher Low on key Fibonacci levels.
If price action breaks the ALL TIME HIGH of 19500, chances of TP2 may increase. Till then, opportunity may be seized by the Bulls.
Trade Plan :
Entry @ 19025
Stop Loss @ 18570
TP1 @ 19480
TP2 @ 19935
No. of Trades: 2
Move SL to Break Even if TP1 hits.
Weekly Technical AnalysisStart your week by identifying the key price levels and trends.
The SpreadEx Research team has analysed the most popular markets, including stocks, indices, commodities & forex.
*KEY
Trend is set by the slope of the VWAP over 50 periods
Phase is determined by the current price relative to the VWAP (20) level (above or below)
Support & Resistance are set by the StdDev #2 Lower and Upper respectively.
Momentum is determined by the RSI level (70 as overbought and under 30 as oversold).
---------------------------------------------------------------------------------------------------------------------
Analysis
Germany 40
Germany 40 remains bullish but has shifted into a corrective phase. The price is 19,045, just above the VWAP (20) of 19,000. Support is at 18,510, with resistance positioned at 19,507. The RSI of 53 reflects neutral momentum, signalling the potential for further consolidation.
UK 100
UK 100 continues its neutral stance, staying in a consolidation phase. The price is 8,288, almost aligned with the VWAP (20) of 8,286. Support is seen at 8,220, while resistance lies at 8,347. The RSI of 51 indicates balanced momentum, suggesting no immediate directional bias.
Wall Street
Wall Street remains in a bullish trend, with the price in an impulsive phase. The current price is 42,136, significantly higher than the VWAP (20) of 41,120. Support is at 41,464, with resistance at 42,587. The RSI of 57 reflects continued bullish momentum but within more moderated levels.
Brent Crude
Brent Crude has quickly switched to a bullish trend, now entering an impulsive phase. The price is 79.38, comfortably above the VWAP (20) at 73.86 after a massive weekly rally. Support is at 69.05, while resistance sits at 79.20. An RSI of 65 signals solid bullish momentum, suggesting further upside potential.
Gold
Gold continues to trend upward but has entered a corrective phase - more via time than price, which has stayed in a tight range, currently at 2,652, just above the VWAP (20) of 2,629. Support is found at 2,557, while resistance is at 2,700. The RSI of 63 indicates strong bullish momentum, although a potential slowdown could occur.
EUR/USD
EUR/USD remains bullish but has entered a corrective phase. The current price is 1.0962, just under the VWAP (20) of 1.1105. Support is found at 1.0900, while resistance lies at 1.1248. The RSI of 34 signals weakening momentum, suggesting potential for further correction.
GBP/USD
GBP/USD is still bullish, now in a corrective phase. The price is 1.3074, slightly below the VWAP (20) of 1.3262. Support is at 1.3070, with resistance at 1.3484. The RSI of 38 reflects a slowing bullish momentum.
USD/JPY
USD/JPY remains in a bearish trend but has entered a corrective phase. The price is 148.34, just above the VWAP (20) of 143.90. Support is located at 139.02, with resistance at 149.07. The RSI of 64 signals a major shift, with momentum edging towards bullish territory.
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