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 took a sell trade that didn’t work out. When price failed to hold above the earlier sell zone of RESCON I sold the move back up as shown.
Not a terrible trade but the choppyness of the DAX meant it only lasted 8 seconds.
I’d marked this sell up earlier and setup a sell limit. I then removed it as I was not sure if I’d be trading this afternoon then came back to see price had reached the zone just after the US Open.
I therefore entered using the Trade Tool for a nice winner!
My original sell limit would have worked perfectly, it was based on a zone of RESCON that’s clearly seen on the hourly time frame.
I’m seeing much clearly how accurate and powerful the intraday KeyZones are, had I used them I might have been able to enter the move down earlier?
The H1 chart below shows why I wanted to sell at this zone. The right arrow is where I sold, the left arrow shows why, look-left again for more support for the trade.
I also considered taking a sell trade at Yes Low but decided to go with the M5 Sell MAB. This screenshot shows how with good timing – or use Sell Limit Order – it would have been possible to have gotten a 2R setup.
The M15 chart below shows why this was the higher value setup if looking to entering a sell trade. If I’d followed my plan I would have taken the sell at Yes Low however, it was the M5 MAB that swayed me.
After such a strong sell-off to SUPCON (D1&H1 Boundaries) it was expected that things would slow down.
When selling at the lows ALWAYS take the higher value entry as per the plan!
M15 chart supporting the sell at Yes Low,
I could not see a safe entry to ride the move down after the session high was made and ended up talking myself out of a decent M1 Sell MAB at the lows due to the D1 & H1 EQZ boundaries. It would have worked out!
When price came back up for the M5 Sell MAB at the H1 EQZ@13175 I took the trade. I did move my stop slightly above Yes Low which saved me once but not twice. The trade was lasted 01:13:44 reflecting the market slowing and digesting the move down.
See the post above for why Yes Low was the value trade entry…..