Your view of this chart

Hello,

I'm a fairly new trader and have been trading Dax the most and been quite succesful. Today I tried trading Dax and felt like I didnt really have a good grip on it at all.

Just wanted to see how you guys analyse this screenshot of dax at this 5 minute chart. Very interested in how people view this and what you would do if you find yourself looking at this chart.

Thanks a lot. excuses the lines and clutter.

http://imgur.com/a/zvTBp

Dogman7 said:

Hello,

I'm a fairly new trader and have been trading Dax the most and been quite succesful. Today I tried trading Dax and felt like I didnt really have a good grip on it at all.

Just wanted to see how you guys analyse this screenshot of dax at this 5 minute chart. Very interested in how people view this and what you would do if you find yourself looking at this chart.

Thanks a lot. excuses the lines and clutter.

http://imgur.com/a/zvTBp

Click to expand...

Need to know the bigger picture. To me, the 5 minute chart is not meaningful on its own.

Not sure what you are trying to gauge with this question. My 2 cents are that it's meaningless but I don't trade using pure technical analysis.

Dogman7 said:

Hello,

I'm a fairly new trader and have been trading Dax the most and been quite succesful. Today I tried trading Dax and felt like I didnt really have a good grip on it at all.

Just wanted to see how you guys analyse this screenshot of dax at this 5 minute chart. Very interested in how people view this and what you would do if you find yourself looking at this chart.

Thanks a lot. excuses the lines and clutter.

http://imgur.com/a/zvTBp

Click to expand...

It did the same thing it did on Wednesday. What did you do on Wednesday?

I don't trade intra-day and I don't think its for new traders in any market.

I am a trend-follower and currently have just 4 criteria to confirm trend and one entry pattern. My approach is simple and I am happy to detail it as might have been applied in this case to the DAX.

The DAX's uptrend is confirmed by -
1. price closed above 50EMA - achieved 11/07
2. price closed above 200EMA - most recently achieved by DAX 20/07
3. last weekly bar/bars not intersected by 200EMA - DAX's weekly bars clear of 200EMA as from 29/07
4. price is higher than 6mths previously - confirmed over +10%

First long entry opportunity presented itself 01/08 when price closed lower than prior close - buy order could have been placed at high of 01/08.

On 02/08, the order would not have been triggered, and price closed lower again - move buy order down to high of 02/08.

On 03 and 04/08 the buy order would again not have been triggered and price closed successively higher but breached the order level on 05/08, triggering the buy order.

The candlestick of 03/08 made a helpful new low so could have been used as the stop, 238pts below the order level.

The weekly candlestick shows as a hammer and not surprisingly price rose (with a gap) higher on Monday 08/08 and strongly on 09/08 to close 362pts above the order price, 1.5 times risk.

This would have been a satisfactory exit point for a modest gain but you could have delayed to any time over the next 4 days, as daily candlesticks showed the buying had lost momentum, culminating in the inverted hammer on 15/08. Actually, instead of taking profits, you could have moved the stop to break-even, the position would now still be open, price has not fallen to the entry level.

I don't trade the DAX but there's no reason it wouldn't work - a chart is a chart is a chart.

Dogman7 said:

Hello,

I'm a fairly new trader and have been trading Dax the most and been quite succesful. Today I tried trading Dax and felt like I didnt really have a good grip on it at all.

Just wanted to see how you guys analyse this screenshot of dax at this 5 minute chart. Very interested in how people view this and what you would do if you find yourself looking at this chart.

Thanks a lot. excuses the lines and clutter.

http://imgur.com/a/zvTBp

Click to expand...

Looks like it should continue moving downside.
But as it was mentioned above we can somewhere at strong support on higher timeframe so we need to check them as well.