Hi Traders! Dax forecast and technical analysis is here. The way I would like to analyze the chart for setups is based on multi-timeframe confirmations because in my POV if we get more evidences on different timeframes for the same direction then it makes the setup much more reliable. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club Spoiler alert – free memberships are available!
On the daily chart, we have a strong resistance zone that has formed and the price which is moving higher has broken above this strong resistance zone and is holding above it, we may consider this as evidence of bullish pressure. Also, based on the Heikin Ashi candles we can see that currently, we have strong bullish bodies in upward moving market conditions so it basically reflects a bullish environment. We may consider this as another evidence of bullish pressure. In addition to this based on the Parabolic Sar we could see that the dots are below the price which we may consider as yet another evidence of bullish pressure. We may now move down to lower timeframe and see if we can find evidences supporting this bullish view.
On the H4 chart the price which is moving higher has broken above the last high at 14192.5 and is holding above it, thus creating higher highs. We can also see that the price has created this higher highs based on the MACD indicator as well, we may consider this as evidence of bullish pressure. Also based on the Heikin Ashi candles we can see that currently, we have strong bullish bodies in upward moving market conditions so it basically reflects a bullish environment here as well. We may consider this as another evidence of bullish pressure. In addition to this based on the Parabolic Sar we could see that the dots are below the price here as well which we may consider as yet another evidence of bullish pressure. We also had a strong resistance zone that had formed which the price has broken above and currently, this strong resistance zone is acting as a strong support zone for us. So until this strong support zone holds my view remains bullish here and I expect the price to continue higher further after pullbacks.
Dax D1(Daily) Chart Analysis
Dax H4(4 Hours) Chart Analysis
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this buy setup then you can use any setup and strategy that you have in your arsenal to look for bullish moves and join this buy trade.
Also don’t forget to protect your buy trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.
You will also find a pretty extensive database of educational materials here in the blog – just use the search or check out the Forex Education section above.
Not sure how to enter a trade? Spot reversals (bounces)? Not sure how to spot breakouts?
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If you have any further questions, don’t hesitate to drop a comment below!
Happy Trading!
Yordan Kuzmanov
Chief Trader at the Traders Academy Club
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