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 has to be my favorite trade for a while 🙂 It reflects the shift I feel within myself as I’ve progressed on the trading journey.
Pure Price Action is concerned only with structure in the form of support and resistance, that’s it!
I used a sell limit in case I had to leave my desk after anticipating this one well in advance. It spiked up through the zone then triggered it on the way down.
Below are screenshots of the setup:
1) The setup.
2) Limit Order Triggered.
A more detailed screenshot of the setup.
Below is the M15 chart showing what it looked like, it was formed on a retest of the top of a keyzone.
After the earlier winner I left my desk and missed out on two potential sell trades that were ‘must take’ trades. Also, a very specific pattern formed that I’ve seen a number of times and have documented.
I call it the “Double Sell Multiple ‘R’ Golden Zone”!
It consists of an Outer and Inner FIBCON and offers two sell entries at the Golden Zone – Point C.
I’ve shown this with the two down arrows (trade entries), the second arrow was the result of the Inner-FIBCON sending price back up into the Golden Zone.
The second sell entry often results in multiple R as the bears sell it aggressively. This was a great example.
The idea is that the point C on the Inner FIBCON is where to take profit for the first sell, ideally 2R (a bit tight on this example). Then on the second sell move the target for multiple R accordingly based on structure etc.
This is a pattern worth specializing in, as always we don’t know when they’ll appear but when they do 4+ R is possible.
I waited for price to break clearly below the BOR, also the D1 EQZ@11694 and was rewarded with an M1 Sell Micro-MAB 🙂
I had to sweat it out as it took a while to clear my target which of course then went lower but that’s OK. I resisted micro-managing the trade and closing out early etc.
I missed this one but it was a classic Reversal FIBCON off the bottom of the range at 11700, these reversal setups are much more common at the bottom than at the top.
Price has been in a range so far between 11700 and Yes High. An M1 Buy MAB was on offer but I passed due to it being close to the top but it was a winner as price had not yet tested Yes High.
Price eventually punched through Yes High then fell back into the range offering no decent chances to enter a sell trade based on our edge.
When it’s clearly a range and price is at the top then sometimes it’s OK to sell at the top with a view to getting multiple R on the way back down?
Two trades in succession, with one very close to hitting my +2R target, but ending in a -0.62R loss!
The first trade was entered with the idea of squeezing 1R out of a sell trade down to the H1 EQZ Midline (11708) and 1min ema. This wasn’t a good trade, and was going against the move up from the bottom of the range, so I’m glad I came out of it break even.
The second trade I felt was a lot more to plan. Confluence between the 1min, 5min and 15min ema and within the GZ, a buy trade moving up to the middle of the range. I tightened my SL as price got very close to my 2R target, by did not move it to break even as I had made that mistake yesterday, so instead kept it just below the moving averages. The trade didn’t work out, however I think I ticked all the boxes and I would take this again.
The only thing going against this trade, was that price was in a range and so there wasn’t a real trend to trade with.
11:04 – As I write this, price has punched up through where my PT was set.
https://blackboxsoftwaresolutions.com/wp-content/uploads/members/desktop-lr7eroa/ge30.sb_M1_20aug2019_1033_14790293_sell.png
https://blackboxsoftwaresolutions.com/wp-content/uploads/members/desktop-lr7eroa/ge30.sb_M1_20aug2019_1043_14790376_buy.png
My first 2R+ trade on a live account. Hopefully the first of many.
Really pleased with this one. “With trend”, confluence between the 61.8 and top of a keyzone drawn from previous price action. SL situated below the 5min and 15min ema for support. I had my PT set at 3R, at the top of the measured move, however closed the trade manually at around 2.5R as I was happy with the profit and worried about giving some back.
I love how price sat right on the 61.8 Fib level for three candles. During the second candle, bears were pushing to get through this level but weren’t strong enough. This was enough to convince me to enter the trade, even though there was no strong MAB confluence.
https://blackboxsoftwaresolutions.com/wp-content/uploads/members/desktop-lr7eroa/ge30.sb_M1_20aug2019_1115_14790691_buy.png
I’ve just got back from a short trip to the shops. Great winner 🙂
I’ve learned to pass on the first sell setup when price is coming up off the bottom a range, my experience is that they’re lower probability due to the bulls pushing price up the range. However, buy setups in the lower third are better probability and your 2nd and 3rd trades show this.
Accurate keyzones are vital and they supported your trades.
This is where the Trade Tool comes into its own, when trading this type of price action with precision.