Technical Analysis of DAX Index (March 13, 2025, 15-Minute ChartTrend Identification:
The price action is moving within a rising channel (highlighted in purple), indicating a potential short-term bullish trend.
The 200-period moving average (maroon line) is above the price action, suggesting a larger timeframe bearish bias, but price is attempting to reclaim higher levels.
The Point of Control (POC) at 22,658.69 indicates the area of highest traded volume and a key decision zone.
Support & Resistance Levels:
Immediate Resistance: 22,720 (upper boundary of the rising channel).
Major Resistance: 22,800 (previous swing high).
Immediate Support: 22,560 (lower boundary of the channel).
Key Support: 22,440 (recent swing low and potential reversal area).
Chart Patterns & Market Structure:
The price recently bounced from the lower boundary of the channel, suggesting buying pressure at support.
A Volume Profile (VPVR) shows strong volume concentration around 22,658, reinforcing it as a key pivot zone.
The recent sharp rejection from the lows aligns with potential bullish continuation, targeting the upper channel boundary.
Trade Setup & Risk Management:
📈 Bullish Trade Setup (Trend Continuation)
Entry: Buy near 22,600–22,620 on minor pullbacks.
Stop-Loss: Below 22,540 (previous swing low).
Target 1: 22,720 (upper channel boundary).
Target 2: 22,800 (major resistance zone).
Risk-Reward Ratio (RRR): ~1:2.5
📉 Bearish Trade Setup (Reversal Play)
Entry: Sell near 22,720–22,740 if price rejects resistance with strong bearish candles.
Stop-Loss: Above 22,780.
Target 1: 22,600 (POC and key support).
Target 2: 22,440 (lower channel boundary).
RRR: ~1:2
Risk Management & Position Sizing:
Risk 1-2% of capital per trade to maintain disciplined exposure.
Adjust position size based on stop-loss distance to keep risk consistent.
Monitor volume dynamics for confirmation of trade direction.
