Dax Short Term Technical Analysis

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Dax Short Term Technical Analysis Update And Follow Up

Hi Traders! In today’s technical analysis post I am going to share with you my short term view in Dax. 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 view 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!

Dax D1(Daily) Chart Analysis – Important Resistance Zone, Bearish Divergence, Stochastic Oscillator

On the daily chart the price which is moving higher has created a triple wave to the upside, while measuring the fibonacci extension levels of the two waves we have, the 161.8% fibonacci extension level of the first wave at 13809 and the 61.8% fibonacci extension level if the second wave at 13849 coincides on the same area thus making this area a strong resistance zone. In addition to this we have a potential bearish divergence that has formed based on the moving average of the MACD indicator and also the Stochastic Oscillator has reached its extreme.

Dax Short Term Technical Analysis

 

 

Dax H4 (4 Hours) Chart Analysis – Important Resistance Zone, Bearish Divergence, Volumes Indicator

On the H4 chart we have a double wave to the upside and while measuring the first wave using the fibonacci extension tool we can see that the 61.8% fibonacci extension level at 13875 coincides on the same daily resistance zone. In addition to this we have a potential bearish divergence that is forming based on the MACD indicator and we can see that the Volumes are dropping based on the Volumes indicator.

Dax Short Term Technical Analysis

 

 

Dax H1 (1 Hour) Chart Analysis – Important Resistance Zone, Bearish Divergence

On the H1 chart we have a triple wave to the upside, so while measuring the two waves using the fibonacci extension tool we can see that the 161.8% fibonacci extension level of the first wave at 13875 and the 100% fibonacci extension level of the second wave at 13812 coincides on the same resistance zone as that of the daily and H4 chart. Thus making this area a very important resistance zone. We also have a bearish divergence that has formed so my current short term view is bullish until the price reaches this important resistance zone, we may then look for possible bearish moves to happen which we will follow up later and see how this develops.

Dax Short Term Technical Analysis

 

Technical Analysis & Forecast Summary

Dax D1(Daily) Chart Analysis

  • Important Resistance Zone, Bearish Divergence, Stochastic Oscillator

Dax H4 (4 Hours) Chart Analysis

  • Important Resistance Zone, Bearish Divergence, Volumes Indicator

Dax H1 (1 Hour) Chart Analysis

  • Important Resistance Zone, Bearish Divergence. My current short term view is bullish here until price reaches this resistance zone.

 

Trading Tips

It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this short term 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?

I invite you to join me in my live trading rooms, on daily basis, and improve your trading with us.

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Also you can get one of my strategies free of charge. You will find all the details here

 

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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