Analysis of Short Trading in the DAX

Last Updated: 13. Dezember 2023By

The DAX is intraday driving in a zigzag mode. Good that we had already closed our short yesterday. The 2nd goal in the form of the demand zone is still active. Actually. It depends on the next few hours.

At the moment it looks as if the DAX could form some kind of double bottom in the 15-minute chart. If that happens, we have to say goodbye to the 2nd goal.

Entries through programmed indicators is one thing. But if the course obviously sends other signals, we can always react spontaneously to it and thus optimize the return in the long run.

DAX in the 15-minute chart Here you can see again the entry signal from yesterday. The optimal entry has been marked with an arrow. That was the mentioned pullback into the retracement zone between 50 and 78.6 percent.

What stands out here: Prices have risen again today, but were unable to form a new high. Above that, the liquidity zones are marked with color.

What are liquidity zones? Often they are resistances or supports at which many market participants have placed their orders. Here there is then a lot of liquidity. Those who buy or sell in this zone do not change the price or only slightly.

As private investors, we do not change the price with our order anyway. This is more important for institutional investors. We can only assume that the prices have plenty of buyers and sellers in these zones.

In the 15-minute chart, this is of course limited. The higher the time unit, the more important such a liquidity zone is.

For our trading, we can take this as another indication. However, the zones have to prove themselves first, how helpful they are in the M15.

So far the trades run with the 1+6 indicator I had calculated yesterday that we have received 81 signals since September . That’s an average of more than 20 signals per month. In sideways phases these change quickly. That means: There are many in succession.

These are only successful if we wait for the respective signal and then wait for a pullback to at least 50 percent of the last movement and only then enter.

At the end of September we had a short phase, in which 3x long and 2x short came within one day and five hours. The long signals came each close to the highs and the short signals close to the lows. If someone had blindly entered here, he would have had 4 lost trades. But what is a bit crazy here again: The 5th trade would have balanced the previous 4 losses directly.

If we additionally wait for pullbacks to get an even better entry, this is of course all the more worthwhile! Maybe I can still filter out this handful of false signals in short sideways phases. Let’s see what else comes to my mind in the coming days.