DAX is currently experiencing one of or the strongest rally when considering new prices discoveries.
Although the later needs to be factored when taking the following information, this is worth noting.
DAX always corrects when the distance from spot to 125d ema is greater than 10%.
Given the sharp rally breakout, DAX is currently at 10% above the 125d ema.
That reinforces: if DAX climbs to 11,000 - A period of correction will be extremely likely...
STAY TUNED
Comments
maximus71
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We could see the dax 30 ranging before a fall....particulary if us market go down...time are uncertain for market ....QE of Draghi will just push the the market fall little later and stronger....thats my view....the Same for oil....certainly soon a bounce and than direction 25$... Saudi and us dont want to cut production....and they know why....!
jangseohee
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They cant argue that Deflation is not a prob, and the "economic growth" is fabricated :-0
IvanLabrie
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Interesting Yacine, what makes you pick that period for the EMA?
YaKa
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you could other periods like 100 and 200 and would find the same type of results.. I tend to like the 125d as it matches many bottoms.. For example, try to plot the 125d ema on a sp500 chart and you will see it defined most bottoms since dec12
YaKa
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btw. the last rebound on dax started exactly there: 125d ema
IvanLabrie
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Great find then, statistical odds, I like.
IvanLabrie
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Seems like a very good period indeed.
This is an indicator I coded here, pots a WMA with ATR based standard deviation bands.
See how well it manages to capture price action here:
Your 125 period makes it come to life.
Figured you might like it.
maximus71
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Excellent...is your indicator free? Should we pay for try it? Thanks to you
IvanLabrie
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Definitely free, I'll publish Yacine's version now, using EMA instead of WMA.
I like the 240 period WMA for Forex, but 125 period EMA seems better for equities.