in today’s post, I am going to look into the German index DAX . There I am going to show you a swing trade idea which you can best see on a 4 Hour or .
DAX is in a long-term uptrend. It has been like that for more than a year actually. For this reason, I am only interested in Long trades. So, I look for strong Supports.
DAX – Analysis
When there is a trend I use my Flexible indicator over the trend and I want to see significant areas. Those are places where (in an uptrend) strong Buyers were adding to their Long positions.
Why are those places important? They are important because the Buyers who placed their Longs there will want to defend those zones – their Long orders. If the price goes past those zones, the Buyers will be in red numbers. Obviously, they don’t want that. So they will defend those zones.
Defend how? With Market Orders. They will use aggressive Market Orders to push the price up again. With enough Market Orders, they are able to manipulate the price to turn and go up again.
This is also a super important Support! I wrote about this one in an article around a month ago. You can check it out here:
I hope you guys liked today’s analysis. Let me know what you think in the comments below!
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