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….
Can you believe it!!!
An hour or so ago I had to stop trading due to a few phone calls etc. I did watch Joel’s M5 MAB call spike up to the H4 KeyZone@11567.2, I then had another call.
I’ve just returned to see what happened, a PERFECT FIBCON with trade entry/point C @11530!!
Had I been trading I would have taken this trade, it was Freaking High Quality 🙂
Whilst I’m a wee bit gutted I’m also pleased to see what happened, well done anyone who took this.
Once again, note how the Holy Grid guides us, looking forward to next week and trading the MABs and FIBCONs as they form throughout the session.
I highly recommend marking up the A-B-C patterns as they form in real-time, it really focuses the mind and reasoning processes.
Today is all about going back to basics, reading the price action and marking A-B-C setups as they form. I’ve looked closely at my results, whats worked and whats not etc.
At the very core of our approach is the MAB & FIBCON pattern and I’ve not been following my plan which instructs me to mark them up in real-time. Yesterday I sat all day and did that, it was the best thing I could have done!
Yes I’ve had success using zones of RESCON/SUPCON, Yes I ‘ve had success some with multiple R winners
BUT
I’ve also been going for the big winners, being greedy and not closing out 2R winner after 2R winner which grows the bank.
I’ve not been The Bear and due to poor entries have moved my stop only to lose more times than is acceptable. All this shrinks the bank and drains the emotions 🙁
The Trade Controller environment is specifically designed to trade MABs and FIBCON intraday using the Price Action Grid. Yesterday I was reminded of how precisely price interacts with the Grid and I’ve not been taking advantage of that in my trading, it’s time to change that!
Good quality 2R setups form regularly throughout the session and I’ve been pushing for multiple R way too often. Adam Khoo has reminded me of the power of the 2R traders equation, I’ve been skewing that by moving my stop and going for big winners.
To progress on my journey I need to get back to the basics, my charts will therefore be marked up like they used to be, A-B-C followed by A-B-C looking for quality setups, looking for phi 🙂
Back to today….
After marking up A-B-C patterns I was SO close to selling the retrace back up to 11567.2 at 09:14, an awesome GZ M1 MAB!!
I was late selling the retrace up the Open, the 61.8 level was confluent with the H1 EQZ Mid-line@11545.9 AND H1 Bull Mid-Channel. My target was below the low but above the H4 KeyZone level at 11504.7
When it double-bottomed I closed out as its an H1 EQZ@11516.8, good setup but poor execution.
I therefore expect to take more trades going forward but that’s ok so long as they are high quality 2R setups. This also leverages the power of the 2R traders equation due to the increased trading volume, much like a casino needs people to keep playing so their edge is in play.
So despite a week of drawdown it’s been key to me evolving as a trader, it’s forced me to review my results. The good news is the areas to work on stand out SO much.
- I’ve not been following my plan and had become complacent due to a period of profitability
- I’ve not been taking advantage of the Grid and how its guides us through the minefield of uncertainty.
I seems that you’ve taken a few steps back and had a ‘factory reset’. I think we all need that more often than we realise!
I had noticed that your focus was very much towards RESCON and SUPCON, which for me was a very good thing, as it has made me think a lot more about those important areas, something that I was not doing before, and I feel it has made my read of the price action much better.
Comparing our reads for this mornings movement, I’m really pleased to see that they are very similar, although my chart isn’t marked up half as well as yours! I’m glad to see that you got at least a small something back in profit, as I seemed to always find something to talk me out of taking the trades, letting juicy salmon swim past.
Factory Reset is exactly what’s happened and exactly what is needed!!
That’s great our charts look similar, they should if we’re trading the same setups. In fact if we all mark up the setups using A-B-C and the Fib tool throughout the session we should end up being aligned in our thinking.
The skill will be passing on the low probability ones and taking those that are good enough to contribute to traders equation where 40-50% strike is profitable, see Adam Khoo 🙂
We need to be able to take 5 losers and NOT be concerned at all so long as know we followed our plan and process.