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 returned to my desk to see price making its way back up the range off the 13167 level. I found a GZ by taking point A from the H1 EQZ@13175. The confluence was:
- Bottom of KZ
- 61.8 Level
- M1+M5 MABs
- Good RR, looks great on M15/M30 charts
I entered with the Trade Tool and it started well. Quite a battle followed which told me this was a major zone until eventually the bears won.
I reasoned that price would take another run at the 13200 level and maybe try higher, not this time.
After failing to hold above the 13210 level price sold off to produce a micro A-B leg with the GZ as shown. I wanted price to reach the 61.8 level@13204ish but the M1 MAB was enough to send price back down.
I setup a Sell Limit and left my desk. It was designed to catch the M15 MAB but that was enough to send price back down before it moved up strongly to trigger the zone and take me out straight away.
The setup was good – see M5 chart below – but I think if the M15 MAB had not been in the way this sell limit might have triggered and worked out on the first test of the zone.
The H1 chart shows why price turned around when it did, another sell zone above the one I used.
M5 chart below showing A-B-C pattern used. It was a decent setup, you can see where the M15 MAB sent price down. That was the setup and as mentioned above, had it not been in the way it might have worked out.
This was one of those “Must Take” setups that formed after 8am. It ticked all the boxes and is a great example of how we trade a classic A-B-C pattern.
I could not talk myself out of this one and after yesterday where I talked myself out of an M1 Sell MAB winner at the lows I took the trade.
Price has since formed a Double-Bottom and is moving back up.
Below are two screenshots, one of the trade live, the other of the Sell Limit setup in anticipation….