DAX Monthly return

MACD To find market reversals

You can use MACD indicator with trends line to fine the major market reversal points.

Be aware of stock advisers(MARKUS FRICK)

Always make your own analysis and decide independently by yourself.



Listen what Andre Kostolany is saying about the stock advisers from here.

DAX: Current New Highs and New Lows Index

Blue points shows 52w highs of the DAX index.
Year to Date 52 week DAX new highs and new lows index.
Long term 52 week DAX new highs and new lows index.

Year to date DAX 20 Day new highs and new lows index.Long term DAX 20 Day new highs and new lows index.

If you do not know how to interpret this indicator, you can go to marketscreen.com to learn more about the interpretation of this indicator.

Downloading single stock data of an index

If you are investing foreign markets you need to calculate some indicators by yourself. For example New highs and new lows indicator requires additional effort to estimate for the non-US markets e.g. Turkey, germany etc..

There are many websites for the US markets which provides also such kind of indicator graphs.
But for other cases we need to calculate this by ourselfts. The below excel macro shows you how you can download the 30 DAX stock data to make new highs new lows analysis of the DAX index.

Order Types

Limit order: Buy order will be filled maximum at the limit value. Sell orders will be filled minimum at the limit value. e.g. a stock is currently trading at 47,8€. You do not want to pay more than 47,6€. Your order will only be filled at 47,6€ or for a better price (less than 47,6€).

Stop-Market order: If the price of a security reaches or exceeds the value of the stop-market price the order will be an unlimited market order.

Stop-Limit order: Like stop market order but the order will be limit order instead of the market order.

Analyzing the Markets

John Murphy has an excellent work on intermarket analysis. You can analyse the market direction by analysing the interrelations between the markets.

Joseph Ellis has an excellent book about the economic analysis "Ahead of the curve".

[1] Joseph Ellis, Aheadofthecurve
[2] John Murphy, intermarket analysis

CALCULATING THE PROTECTIVE STOPS

You can calculate your risk in the trade. In our case it is (142-132=) 10 euro. If you divide this by your acceptable risk level let say 2% of the capital which is 200€, you can find the number of stocks that you are allowed to buy. I used the google calculator to make this simple calculation. As you can see we are allowed to by 20 stocks for this trade.

Using the VIX Indicator with the MACDHistogram

VIX indicator can be used with MACD Histogram to determine the market turning points. It can be an additional tool to confirm your entry.

NASDAQ/NYSE Ratio

Then the ratio is declining it means that NYSE is performing better than the NASDAQ. If the ratio is increasing it means that the NASDAQ is performing better than the NYSE. According to the Modified Dow Thoery NASDAQ is the leading index. If the ratio is higher than the 10 week moving average then it is bullish. If the ratio is less than the 10 week moving average then it is less bullish.

You can go to the stockcharts.com web site to see this ratio or you can click on this link.