TradeCompass for DAX Futures: Swing and Intraday Opportunities

Trading Compass: DAX Future Analysis and Price Prediction

Overview of current prices
DAX futures are trading at 21,377located just above critical levels that dictate today's price action:

• Point of control (POC): Main volume concentration of the day.
• VWAP (Volume Weighted Average Price): Reflects market equilibrium.
• Low Value Range (VAL): The lower end of the fair value range.

The High Value Area (VAH) standing at 21,444with the 2nd Upper Standard Deviation of VWAP located at 21,475. These levels are crucial in predicting future price movements for the DAX.

DAX Futures Bearish Price Forecast

This analysis prioritizes a short tendencyoffers high reward opportunities as the DAX shows relative weakness.

Key Entry Levels for Short Positions

1. 21,397: Just below 21,400 round nopsychological pivot.
2. 21,417: Below 1st Upper Standard Deviation of VWAPideal for additional entries.
3. 21,430: Third adjacent entry high volume nodes (HVNs)offers better trading conditions.
4. 21,444: If a price comes again on the LIBRAthis provides a strong proof level for shorts.

Short Target Rates

1. 21,278: Above the VWAP of the openingearly profit zone.
2. 21,146: Just above yesterday LIBRAan important support target.
3. 21,051: Above yesterday VALaligning with further bearish momentum.
4. 20,900–19,900: Deep swing targets for multi-day traders, increasing the potential for sustained declines.

Risk Management:

• Use 21,485 (just above the breaking threshold) as a stop loss.
• Change stops to break even or secure profits after the first target at 21,278.

Bullish Price Prediction for DAX Futures

Bullish entry pattern

A break out higher than 21,485 indicating bullish momentum, opening the way to higher price levels.

Bullish Target Levels

1. 21,520: First significant struggle after breakout.
2. 21,594: Secondary level near high volume areas.
3. 21,700+: A potential stretch target for traders riding a steady upward trend.

Stop-loss instructions:

• Below 21.444 (VAH) to manage risk in the event of a reversal.

DAX Futures Analysis: Supporting Factors

1. Relative weakness: The DAX is showing signs of weak performance, which was previously boosted by the Nasdaq and stocks like Netflix. This rally could fade, increasing the bearish case.
2. Reward-to-risk advantage: Short positions currently offer a more attractive risk-reward ratio, especially for swing traders.
3. Main Price Level at 21,355: If the price stays below POC, VWAP, and VALit confirms bearish dominance.

Execution Strategy

• Taking profit in part: Secure incremental gains at defined targets to mitigate risk.
• Stop changes: Shift stops to balance or higher after reaching early targets for added security.
• Swing trading potential: Hold positions on longer intraday timeframes to take advantage of larger movements.

While our primary goal is to capture greater momentum, we recognize the importance of managing risk effectively. To achieve this, we have identified specific price levels and detailed the rationale behind taking part in initial profits. This approach allows us to reap benefits early, reducing exposure and ensuring we remain disciplined even as we aim for larger targets. By identifying these key stages, we create a structured path to minimize potential losses while increasing the opportunity for significant movement.

Thanks for following along, and we invite you to visit us daily for more insights Trading Compass ideas and strategies. Always do your own research, trade the DAX at your own risk, and visit it ForexLive.com for additional views.