Our smart 1+6 indicator has detected a trend reversal in the DAX. As I had already reported to you, the programming only works in the DAX and in the 15-minute chart. I have already looked at numerous other values and time frames, but only in M15 in the DAX does the 1+6 make me happy.

Yesterday I showed you the optimal entry point when it retraced. The Fibonacci zone between the 50 and 78.6 retracements. Today we are combining these directly.

DAX in the 15-minute chart with 1+6 indicator The short signal came at the 1 in the chart. There you can see „short“ lightly concealed. After this candle was closed, the first entry would be possible. Possible because we are extremely close to a demand zone. Specifically only 0.14 percent away. Therefore, I thought I would wait for a retracement before I actually get into the short.

(Source: Tradingview.com)

The zone mentioned for entry runs in our example between 16,801 and 16,830 points. That is the area between the 50 and 78.6 retracements. We even shot briefly above the wick and promptly it went down.

If we switch to the next smallest time unit for a better entry into the trade, this is the 5-minute chart. There was a doji candle at 2:25 pm, which could signal a possible reversal. That was at 16,820 points and thus exactly fit.

Is there another entry? Well, I mentioned the demand zone above. We are currently just above it again. In this zone it would be of course, if the DAX bounces off it again to the upside. Does not have to, but we respected the zone. Maybe the courses do too.

If we assume that there could be a counter movement here again, Fibonacci gives us a new entry area. Then the 50 retracement would be at 16,794 and the 78.6 at 16,827 points. That’s already fine-tuning now, but so you can see how exactly one can analyze the trade in advance when it comes to the start signal.

CRV of 2.5:1 in focus If we looked for the good entry in the 5-minute chart after the original signal, the stop loss is of course much closer. We set it above the last highs in the chart and would thus have a chance-risk ratio of 2.5:1 if the prices reach the demand zone. A CRV of 1.5:1 is already won.

That’s what I meant when I said that we were practically starting two trades when we went into the market. Then we make a trade that has a CRV of 1:1 and let the other trade run or pull a stop loss, depending on the formations in the chart. But for that we have to look at the higher time frame again. If we pull the SL at all.

Because the previous possible long trade would have given us more than 850 points in the DAX today. The CRV would be 18:1 here with the same procedure as just described!

What about signals since September 1? It is great that the trading signals allow for great gains. Now let’s look at how many signals we get to get a better feel for the 1+6 indicator. Since September 1, we have had 40 long signals and 41 short signals.

Some of these we can ignore because we would not have gotten a favorable return for an optimal entry. If we take between 50 and 78.6 percent as the target for an entry, we often get into the trade at 50.

Interestingly, I noticed in the analysis that there is a time of day when the signals always worked perfectly. So, if a signal came at that time. I will take a closer look at that.