If we look at the volume profile (15-minute chart showing the last month) and focus on the higher volume areas, we can draw these four zones that may act as potential support levels if price breaks lower. The issue with predicting these support levels is the Italian referendum result is likely to cause volatility.
If you were short-term bullish and looking for a long position, this could be interesting. The position requires a pullback to the Value Area Low of this Volume Profile (visible range) before rallying up to recent resistance. The stop loss would be just below the recent lows.
There are two ways you could trade the Dax at the moment, which camp are you in?
Range traders can use Limit orders in the buy/sell zone.
Break-out traders can use Stop orders 30/40 points above/below the range.
61.8% fibonacci level coinciding with a daily supply and demand zone. Previously stuck in a downwards channel and is seeking liquidity for any further moves higher. I would expect to see more re-tests of this downward trendline before any significant market structure changes.
It may make another run at the top tramline, or may not. (SPX500 and US30 still have a clear run up). However, four touches at the top and three at the bottom are not to be argued with. Remember this is in USD, so you either match a DAX trade with a short EURUSD, or use the EWG instrument.
1) BEARISH CHANNEL BREAK
2) New Bullish Channel with strong HH & HL'S
3)MAJOR KEY LEVELS AND RESISTANCE AT 1052
4) Currently holding at a major 4hr support zone
Expecting price to rally back up to 1065 which is also another key level
Leave a comment, like and share.
1) Bullish Channel breakout
2) Failed to create an extra HH & LH
2) Within a Mid range consolidation
4) Double top formation on the daily
3) Mid range consolidation Support/ Neckline broken
Expecting price to rally down to around 10145
Step by step analysis provided in the chart. Following the high made in April 2015 to the low made in February 2016 there appeared to be an area of low volume, which now has successfully been filled up to the 61.8% retracement level. Back testing this idex shows its sensitivity towards this '61.8' level. To make things more convincing, this level is also lining up...