DE40 (GER40) trading strategy

Solid overview of the DAX/GER40.

Focus on the first 2–3 hours after Frankfurt open (8:00–11:00 CET) for best volume and moves.

Use 15-min chart with EMA 9 + EMA 21 for trend direction and pullback entries.

Respect daily pivot points or previous day high/low as key support/resistance.

Keep risk at 0.5–1% per trade with a tight stop.

Simple and effective.

spotted a Daily Head and Shoulders pattern on GER40 since last week, but price has been ranging between Resistance Level 25200-25100 and the Support Level 24800-24750 minor levels for the past 7 days.

Spotted a Daily Head and Shoulders pattern on GER40 since last week, but price has been ranging between Resistance Level 25200-25100 and the Support Level 24800-24750 minor levels for the past 7 days.

Okay I tried trading this GER40 but it was slow. The price movement is too slow, I dont know if you experience the same thing

This is the way I trade DAX (Xetra). The Xetra exchange opens by 9 am CET but early trading is from 8 am - 9 am. I box out the early trading hour and wait for price to break out and show a reversal pattern, which i trade. In the attached image, I would buy from the blue circle.

Xetra is a subsidiary of the Frankfurt stock exchange but Xetra is electronic and more modern connecting 13 countries in Europe. There is always an opening auction between 8:55 am to 9 am. there are also intra-day and closing auctions but I don't use those ones. My trading on DAX is only in the morning.

When looking for an entry I prefer switching to the 15-minute time frame for more accuracy. See attached bullish engulfing entry pattern on chart

This is another example, on a 15-min chart. Wait for price to break out of the early trading range (green box) then look for reversal pattern. I will take a live trade tomorrow for exhibition purposes.

This is yet another example, price exits the xetra early range (black box) then you look for reversal pattern on 15-min chart

Oh wow. I would love to try this too. I trade Dax on my Prop firm. It's open sessions is quite different from other indices.

Yeah. The London Session hours, is mostly when it carries good momentum. Thanks for the Xetra update. I'll check it out.

The Xetra (Frankfurt) stock exchange has just opened by 9 AM CET for main trading but I have boxed out the one hour of early trading that took place between 8 - 9 am. The box also captures the early morning market auction that took place between 8:55 and 9 am.

Now, I will wait for price to breakout of the box and form a reversal candle on a 15-minute timeframe before deciding to buy/sell

Price has now closed outside the box, so I will switch to the 15-minute timeframe to look for a reversal pattern so I can buy

Long trade taken at 24,695 after spotting reversal pattern. SL is at 24,615

Are you a structure pattern trader? I have seen all your markings it's all patterns, I created a new thread on how smart money builds position, using the example on the image, I have been seeing this occur all the time and repeating all the time to I decided to put it out to everyone maybe you can look at it

That pair is in my watch list couldn't catch the first fall down but looking at the order block at 1hr timeframe from 24897 to 24949 level, is where I will be looking for sells don't want to go on a retest move because it's very slow and you won't know when you are wrong easily untill sl hit

Very slow movement since morning trade is still in a loss

It is now in profit

It's okay but watch out for manipulative moves because even Gold after taking out the 4023 level is currently reversing, even the Nasdaq is showing some strength at an accumulation level so it may not last for me

That zone could be an accumulation zone I marked the upper price level and lower price level if there is no strong break out of the 24620 or 24729 level then price will continue to accumulate untill there is a clear break out