Ever since my TC Trial earlier this year my focus on Forex pairs has has narrowed to just a few. My preference has been to focus on the EUR/USD, Gold, EUR/JPY and even the Aussie and Kiwi at times if the conditions are suitable. I was listening to a podcast earlier in the week and the trader in question mentioned their success in trading the DAX. I have been looking for an index that might suit my timezone for trading but the Nikkei-225 and ASX-200 have not been too productive. I decided to scroll back through charts of the DAX to see how this index might fare with the 15 and/or 5 minute chart focus for TC.
DAX-30 daily: The DAX-30, like many of the major stock indices, has been consolidating within a triangle pattern for the last 10 weeks so trading opportunities have, probably, been rather rare. Note that there is a support trend line that has been in play for 2 1/2 years; since Jan 2016!
DAX-30 4hr: the consolidation is clear on this time frame as well:
DAX-30 30 min: the 30 min chart shows blue boxes depicting the Asian range. The left hand side of each blue box equates roughly to the Asian range and the right hand side equates roughly to the start of European trading. It is clear that, for the most, there is little movement on the DAX during the Asian time zone which isn’t surprising given the market open timing. Occasionally, you might see some movement in the Futures, for example on a Monday after President Trump’s Sunday night Twitter stream hits the wires, but most activity is evident during the European session. Thus, this is the time period that it would be best to look for momentum signals on the lower time frame charts.
DAX-30 5 min: I have looked back over the last week or so and these are the days when there were valid TC signals. Some days did not not offer any TC set ups but, on the days that did, the outcome was quite positive:
Wed 15th Aug: today! No valid TC signal today despite the decent set up with a quiet market:
Tue 14th Aug: there were two TC signals this day with both working EXCEPT the Stop on the second signal would have needed to be higher than the other side of the Cloud:
Monday 13th August: no TC signals.
Friday 10th August: this is the ideal kind of set up for TC; a quiet sideways market rendering a small STOP for the momentum breakout with TC signal. This one gave up to 10 R!
Thursday 9th August: no TC signals.
Wednesday 8th August: this was another day offering a great TC set up. A sideways market with a small Stop giving up to 6R:
Summary: I will be keeping a closer eye on the DAX-30 for TC signals off the 5 min charts in coming sessions. I am hoping that when the DAX eventually breaks out of this triangle that there might be some better trends to catch.