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’ve just taken a look at the afternoons price actionto see this great sell FIBCON that formed when price moved up strongly to the top of the range.
Point C was perfectly confluent with the M5 EQZ@11204.2 and contextually price was coming back down into the range which why the M1 Buy MAB was another low probability.
When price broke below Yes High I switched to sell mode as mentioned in the earlier post. After testing the H1 EQZ@11133.5 I marked up the sell setup as shown and waited to see what happened if price came back up to point C.
The Open+Yes Close+H1 Bull Channel+H1 Bear Channel were acting as possible Role-Reversal resistance so I entered the sell trade as shown once price struggled to get above the H1 Bull Channel.
I moved my target lower in case the energy of breaking through the 11133.5 level would lead to a significant move down but once price paused I closed out for a decent winner.
The setup ticked the boxes mentioned in the earlier post and worked out. The key bit of price action was the break below Yes High followed by the intersection of Grid structure at point C.
A Range day so far which means MABs and FIBCONs will be lower probability. After moving back up off the low at Yes High price tested the session High and reversed just below.
The M1 and M5 MABs shown were therefore low probability. I was ready to enter the M1 Sell MAB shown but price did not reach the MA and the 61.8 level, however, a decent setup as the Role-Reversal was good, look-left.
If price can break below the Grid structure between Yes High and the H1 EQZ@11133.5 then some decent sell setups might form?
At 8am price sold off strongly down to Yes High and the D1 Bull Channel, both of which are major Grid levels.
The M1 sell MAB shown is a great example of a low probability setup due to the context. Over the last few days the bulls have in control so unless it’s a great sell setup the bias is for buy trades.
Sometimes these sell setups workout but we must always be asking:
- “Can I see the A-B-C with excellent Role-Reversal?”
- “Do I have great structure?”
- “Do I have great context?”
When you can answer “Yes” to these then our edge is in play!