DAX Intraday Strategy Using Support, Resistance, and Reversal Patterns

Summary

This intraday DAX strategy combines periodically refreshed support and resistance levels with candlestick reversals and breakout pullbacks. It looks for bullish or bearish pin bars and engulfing patterns near those levels, trading a rejection in the prevailing direction indicated by a moving average. If price breaks beyond a selected level, it instead seeks an entry on a retracement. Stop entries remain active for three bars, with volatility-based stop and target distances and daily profit and loss limits.

The document reports a test setup on the DAX at a one-minute timeframe, with stated capital of €10,000 and a one-point spread, but gives no performance statistics or detailed results. It also describes increasing contract size after losses, a sizing approach that can amplify risk. The reported test conditions do not establish robustness across markets, time periods, costs, or parameter choices; the strategy’s results cannot be assessed from the information provided.

Key ideas

• Support and resistance levels are refreshed periodically and used to identify possible reversals.
• Pin bars and engulfing patterns provide reversal signals near those levels.
• Breakouts are traded on a pullback in the direction of the move.
• Stop entries expire after three bars, while stops, targets, and daily limits constrain trading.
• The document states a DAX test setup but provides no performance results.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.