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….
This price action is a great demonstration of what I’ve called a “Double Sell Golden Zone”.
The ideal way to trade these is:
- Enter the first sell entry (point C) and take the 2R.
- If price retraces back up to test the 61.8 level sell again ONLY this time consider moving the target based on the structure.
I’ve observed this pattern many times and plan to trade it as above BUT today I did not see this until after price action had played out.
It has the potential for 2R + 2R or more if the price action is decent. The idea is that if the second test of the GZ fails then price will fall further than it did with the first test.
This is a common pattern but tough to identify and trade in real-time, time to characterize and specialize as it’s a proftibale pattern.
This shows a classic Outer-Inner FIBCON pattern where the GZ of the Inner-FIBCON was the best place to take profits.
When price reversed after setting the session High a FIBCON formed. I moved my target and ended up only taking a +0.61R winner after trailing my stop.
Due to the rangy price action I should have expected the Inner FIBCON, see above.
This second sell was an A-B-C that is much cleare on the M1 chart. If I’d taken it on the M1 chart I’d have maybe got a better entry and profit level.
Price is in a micro-range just now after digesting yesterday’s huge sell off. I trailed my stop once it had gone over 1R in to profit.
I sold the first test of the session High after 8am on the M5 chart. It was also an H1 Sell MAB.
It started well then price spiked up to take me out for a 0.90R loser.
Not a bad trade, not a great trade! It was not an A-B-C setup but was based on Grid structure and I’ve seen these work out, but not on this occasion.