DAX 40 (GER40)

📜 History

The DAX was launched on 1 July 1988 by Deutsche Börse to give Germany one benchmark for its largest listed companies. It started with 30 blue-chip stocks and a base value of 1,000 set at the end of 1987. It is a total return index, so dividends are reinvested in the calculation. The index grew with Germany's export-driven economy and became the main gauge of German industry. It peaked above 8,000 in March 2000 and then lost more than half its value during the dot-com bust. It fell sharply again in 2008 during the global financial crisis and in March 2020 during the COVID-19 shock. In September 2021 the number of members rose from 30 to 40.

⚙️ What moves the price

• →ECB interest rate decisions and euro-area inflation data, which affect European borrowing costs and stock valuations
• →German economic data such as Ifo business sentiment, factory orders, and industrial production
• →Global demand for German exports, especially from China and the United States
• →EUR/USD moves, since a stronger euro can weigh on exporters' earnings
• →Car, chemicals, and industrial sector news, as these firms are large index weights

Character

• •Large moves at the Frankfurt open and when New York opens.
• •Clear structure on H4: swings and breaks of structure are easy to read.
• •Reacts to the ECB, German data (Ifo, ZEW) and US markets.

When to trade

• ✅The Frankfurt session, especially the first hours and the overlap with New York.
• ✅Swing trades on H4 in the direction of the market structure.

When not to trade

• ⛔ECB decisions and US CPI days.
• ⛔Gaps on Monday morning after weekend news.

Our verified setups

Latest closed signals

• SELL · H4 · SL02/10−$100
• SELL · H4 · BE28/09+$0
• SELL · H4 · SL28/09−$100
• SELL · H4 · BE17/09−$1
• SELL · H4 · SL28/08−$100

📊 Weekly report

Simulation: $10,000 deposit, $100 risk per trade. Pips — price movement; $ — result at fixed risk.