"Trading the Dax with a SIP"
DAX
This is another one of my favourites not so volatile and easy to trade. What exactly has happened in the chart above? The price became oversold just below the point indicated, followed by a “SIP” shift in psychology, this is a larger than normal bullish candle, the moving averages line up in the required order for an uptrend. Immediately after that the SAR indicator also wastes no time in pointing out a "Long" trade – I would waste no time in trading this one! Trading indices is not any different in comparison to trading any other charted instrument that can be analysed using technical analysis principles as clearly shown in the charts above. Let's look at "SIP" trading for the above chart in video below.
A SIP or "shift in psychology" is a larger than average price move, we do not use a mathematical formula to establish this but visual indication is just as good. A SIP also does not normally have any or very little tails if any from its open and close price in other words the high and low of the price will be the same or near enough to the open and close of the price Added confirmation of a SIP is a requirement and a must, please see further detailed explanation of this in the FTSE 100 section
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