I will post the text and then post the chart. I just typed my response tried to attach the chart, which was too large and lost my text, so chart will follow. I would consider an early warning that the current uptrend might be losing strength to be the earlier divergence (the black trend lines on my chart). Then much like the earlier example when the stochastic crossed above 75 (below 25 in the earlier example) and turned down (see arrows), I would exit when the price broke below the candle or bar which made the high in the stochastic. But I would not consider I was in a down trend until the long red candle about 3:15 which took out the lows in the middle of the chart making lower lows indicating to me we now are in a downtrend on this time frame. Then moving to the right to about 3:45 when the stochastic went above 75 and turned down I would get short as soon as the price broke below the candle making the high in the stochastic. What time frame is this chart and what is the symbol. I don't trade the dax but I have found this method to work on almost anything I have ever traded. I really like your method of entering on counter trend moves and have found it to work really well. Also one thing I also often use to help me identify the trend (besides to obvious trendlines) is a little longer (smoother) moving average. A lot of times you can get an early warning that the current trend is ending with the slope of this moving average. With this it really helps to be familiar with the past behavior of the instrument you are trading. Also, when I am looking for a divergence I like to see a reasonable slope to both of them. I really don't want either of them to be horizontal. Although it does indicate a divergence I don't think it is nearly as accurate. Good luck! Again, thanks for posting your charts. Hopefully I will be able to get the chart to upload. Still trying to upload chart!
I can see that u are using esignal- I am trying to get the Keltner bands- seem to have 3 types in esignal- they are all giving me funny channel using the 20 period........... Is that a customised Keltner band ?? Also, u say that for real u trade a 30min VBO- i take it, u use a 30 min chart and just trade the first bars BO of high or low !??! thanks Al
Yes, thanks for sharing. I am a fellow DAX trader (I am an American and I trade the first 2 hours), and then I try to get about 4 hours of sleep and trade the open of the S&P. So basically, I'm a DAX/ES trader. One observation I've made about both markets is that, while the DAX ticks up and down much faster and has a wider average daily range, they both respond well to floor pivots and to historical support and resistance levels.
PLJ, I think the first 2 hours in DAX provide very good opportunity. From what I've noticed, there's a pullback almost everyday on the DAX open. I'm in the US as well (Chicago) and can't get up that early (2:00 am), but if I were doing this full-time I would definitely consider trading the DAX open. -Fast
Almotor, I found it in efs file sharing from esignal and customised it with ema instead of ma. Regarding my VBO, I use a 30 min chart and trade the BO of high and low + 1.5 tick. That's so simple ! Thanks for your comments
PLJ- U say about the pivots- I briefly looked at these in the dax- as far as i could work out, they seemed fairly random- sometimes they woul act as very strong bouncers but at other times, the price would just go throu them easily............. therefore i abandoned them......... the historical lows and highs i guess make more sense........... thks Al