Nice one JJ!
What I am going to say now, might sound strange, but I believe it to be right on the mark.
DAX in a way front-runs US near future direction, though not always. This becomes obvious after, as you have pointed out, a certain amount of screen time (especially in real-time) & understanding certain basics of German mentality as a nation.
First point being an obvious one, I'd just mention regarding the latter that Germans are very competitive, they are so competitive that they would even wake up earlier than others to run to the beach to put their towels on the best spots under the sun. Every bloody morning the same picture, Germans are already there before everyone else. That mentality, IMHO, is also reflected in the way DAX trades, especially prior to US open & also anticipating US markets swings during RTH.
Today shortly after DAX opened I went short, I ended up being stopped out due to my stop placements, but the signal was a good one, as seen on the chart. During the run up to US market opening DAX was steadily trending upwards, took out the HOD & guess what...NAPM data came in beating estimates by a very healthy margin resulting in US taking off to the upside, what a surprise! I look at DAX & see thousands of Carbonis doing their analyses and I just follow something that is more trendy than ES (intraday), though is a lot more volatile, scalpers paradise assuming $/pt value & average intraday range.
Also, on ES I look at histogram pattern on a 10 min chart, whenever there is a rapid range expansion I would be looking to fade the move once next histogram bar closes higher than its predecessor (10 min TF) with a stop below LOD/above HOD. Histogram bars have to be closing with readings above 0.50 on 10 TF. Histogram is probably one of THE best indicators for scalping, as it provides a visual exact value, rather than an approximate one like in the case of stochastic, RSI, MACD, etc. I sold near the highs earlier today & actual entry was provided by the histogram on 1 & 2 min charts.
What I am going to say now, might sound strange, but I believe it to be right on the mark.
DAX in a way front-runs US near future direction, though not always. This becomes obvious after, as you have pointed out, a certain amount of screen time (especially in real-time) & understanding certain basics of German mentality as a nation.
First point being an obvious one, I'd just mention regarding the latter that Germans are very competitive, they are so competitive that they would even wake up earlier than others to run to the beach to put their towels on the best spots under the sun. Every bloody morning the same picture, Germans are already there before everyone else. That mentality, IMHO, is also reflected in the way DAX trades, especially prior to US open & also anticipating US markets swings during RTH.
Today shortly after DAX opened I went short, I ended up being stopped out due to my stop placements, but the signal was a good one, as seen on the chart. During the run up to US market opening DAX was steadily trending upwards, took out the HOD & guess what...NAPM data came in beating estimates by a very healthy margin resulting in US taking off to the upside, what a surprise! I look at DAX & see thousands of Carbonis doing their analyses and I just follow something that is more trendy than ES (intraday), though is a lot more volatile, scalpers paradise assuming $/pt value & average intraday range.
Also, on ES I look at histogram pattern on a 10 min chart, whenever there is a rapid range expansion I would be looking to fade the move once next histogram bar closes higher than its predecessor (10 min TF) with a stop below LOD/above HOD. Histogram bars have to be closing with readings above 0.50 on 10 TF. Histogram is probably one of THE best indicators for scalping, as it provides a visual exact value, rather than an approximate one like in the case of stochastic, RSI, MACD, etc. I sold near the highs earlier today & actual entry was provided by the histogram on 1 & 2 min charts.
