Welcome to the daily DAX commentary where we share with members our unique take on Price Action as the session unfolds. We comment on trade setups that conform to our trading edge and how we use the hybrid Blackbox Trade Controller for MT4.
Use the comments section below to post questions and read what others are saying.
Remember to:
- Follow your trading plan.
- Practice visualization techniques.
- Review and journal your trades at the end of each session.
- And above all else Be The Bear….
I took a sell trade that was not great value so I closed out for +0.58R due to the M1 MAB which was the better setup as shown by what happened afterwards.
After failing to hold above the Open price moved back down below Yes Low and the bottom of the M5 EQZ at 12315.4 to produce a Lower-Low. The Golden Zone was at Yes Low so I sold the retrace for a +2.19R winner.
After the move down and the move back up off SUPCON price is currently ranging with Yes Low being approximately the middle of the range.
The area of SUPCON held, I was waiting to see if price would test the H1 Bull Channel but the H1 Bear Channel was the turning point.
I took the GZ M5 Sell MAB but inside I knew due to the SUPCON it was a low probability, so will pass on a similar one next time. The gap meant I had a -1.35R loser 🙁
At 06:40 I updated the blog to show an area of potential SUPCON.
I reasoned that price might retrace up to the Open to offer a sell trade, if so and Yes Low breaks then multiple R is available.
My first trade was a loser but when price moved back below the Open I took another sell, this proved a good call as it resulted in my best trade since going live 🙂
The reason I was OK with entering the second trade was based on the probability of multiple R being available if price broke below Yes Low. It was the Price Action Grid that supported this reasoning based on the area of SUPCON.
I moved my taget to just above the area of SUPCON. If I’d have been more patient I could have got more from the trade but was very pleased with the result.
Just before the 7am open price moved down to test Yes Low. Just as the 6:59 candle was about to close price shot up to the Open.
It retraced slightly then paused for a few seconds before 7:00, at the open price gapped down as shown.
Structurally it was a great Golden Zone M5 MAB but difficult to trade as we don’t enter trades during the 7am and 8am opens due to the gaps but this one would have worked
The H1 chart shows an area of possible SUPCON between 12255.1 and 12282.6
- D1 EQZ at 12282.6
- D1 Bull Mid-Channel
- H1 Bull Channel
- H1 Bear Channel
- D1 MA
If price breaks below Yes Low then there’s white space on the way down the D1 EQZ at 12282.6