Today I am showing you another way to trade the DAX in M1. If you are a fan of Fibonacci, pay attention. Here, big profits are possible with one trade. This is how it would have worked today.

DAX in the 1-minute chart The SMMA 21, 50 and 200 lines drawn in are what we use to see a clear trend. If the 21 is above the 50 and both are above the 200, we trade long. Conversely, also short if the 21 is below the 50 and both are below the 200.

What we saw between 9am and 9:15am today was a clear rise. It was not until 9:20am that the rates returned and reversed at the 21-day average.

(Source: Tradingview.com)

This can be used as a long entry. After the end of the green candle confirming the resistance. Unfortunately, this was not a Bulling Engulfing – so it did not completely enclose the previous red candle. But even so, we see that the rates have fallen by more than 50% after the rise in the first 20 minutes.

Fibonacci strategy in the DAX M1 chart We now apply Fibonacci retracements to the high and low and see possible targets at the extensions. The 1.39 extension was the first area that the rates ran. After a sideways phase, it went up to the 1.61 extension. And finally, the rates ran perfectly to the 2.618 extension.

In the 1-minute chart, that’s almost 140 points! So the 2.618 extension is certainly a legitimate target if the rates push strongly in one direction after the opening. That was the case today.

If we had waited for a particularly large candle in the trend direction, we would have entered at 9:36am. Due to the ATR, our target was 15 points. This was reached 2 minutes later. I showed you this strategy yesterday.

Conclusion As you can see, there are many different ways to take on the DAX in the early morning. The 1-minute chart is already very sporty, because here you have to make quick decisions. That’s not for everyone. But you don’t have to.

If you are looking for action, you should choose a trading system that fits you. Just trading wild will make your account empty even faster in a small time window.

Even in today’s example, we are not even in the market for an hour and only with one trade. If you manage to use the first candles in the DAX for yourself every day, you can already finish by 11am.