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….
Another example of the “Double Sell Golden Zone Multiple ‘R’ Setup” pattern that I did a video on a few days ago. This had great structure!
Do watch the video for a full description of this pattern to see how pure price action patterns repeat themselves. Anticipating these in real-time is a skill that is SO worth mastering…
A decent M5 Sell MAB with Grid structure forming the A-B-C of the setup.
This sell setup is a great example of why we must be very careful at the 8am open due to the energy that’s injected as the bulls and bears battle it out until things calm down and a clear direction is established.
After price moved down below the Open, I marked up the possible sell setup which had good structure where the 61.8 level was perfectly confluent with the earlier trades point B.
However I passed due to the context and experience from seeing how much price can spike around following the 8am open and when I looked the M15 chart – see below – the Low was moving back up quickly off a KeyZone.
This sell FIBCON was a great example of trusting structure and using both the M1 and M5 charts to support taking the trade.
After the 7am open price moved down below the Open to produce a Lower-Low, I marked up the A-B-C as shown below and cross-referenced the entry point with a micro KeyZone I’d marked up on the M5 chart, see below.
I reasoned if price came up to the 61.8 level I’d take the trade as it passed all my rules, it was a “must take” trade imho!
To sell after a strong bull candle is not easy in real-time but this is where we either trust structure or we don’t. This worked out to be nice early breakfast on NFP 🙂
Below is the setup marked up in advance on the M1 chart.
Below is the M5 chart with the micro KeyZone, trade entry is shown by the arrow. Look-Left to see the wicks that supported the trade.
Below shows the juicy salmon about to be landed 🙂
I didn’t trade yesterday but in the evening I took a look at the charts to notice the following micro structure on the M1 chart. If you’re sat watching this the bull candles might tempt to to consider taking a buy trade.
I’ve positioned the Trade Tool accordingly and if you reasoned price is heading up to test the High then these two were decent setups, pure price action structure.