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 was not sure of the best place for point B and ended up talking myself out of this M1 Buy MAB due to the context at the top ofthe Hourly KZ@13372
This FIBCON marked up on the hourly chart shows the importance of the higher time frame context.
Point A is taken from the D1 EQZ@13167 and point B at Yes High+The Hourly KZ@13303 and look where the GZ falls?
The 61.8 level@13220 is right at the session Low which was followed by the huge bull spike up.
WOW!!!
This is a great example of how important it is to mark up the A-B-C correctly!
If point A is taken from the Low then the GZ shifts lower and look what happened before price shot up. I made point A fit with the M1 MAB and on the M1 chart you risk getting caught up in noise, that’s exactly what happened to me!
Points B & C are confluent with the KZs and point A the session Low – ALL Grid components.
It’s SO clear afterwards that this was a great opportunity to ride the move up from the bottom of the Hourly KZ@13240 to the top@13305.
After finding support just after 8am a bull spike pushed back up through the 13240 level. I took the M1 Buy MAB and ended up with a loser after reducing my risk.
Had I not done that I would have taken the full 1R. My 2R target was at point B so pleased with that part of the setup.
I was anticipating that the bulls would be able to push higher but I got caught up in the battle around the 13240 level.
This M1 Buy MAB that formed just after 7am is a good example of why I almost never trade before 8am.
It had good structure and good Role-Reversal when you look at the M15 & M30 charts but due to relatively low liquidity these tend to be low probability.
Plus the spread is 1.5 pips between 7-8am. At 8am it drops to 1 pip and the London traders join in providing greater liquidity.
Yesterday was a very bullish one that saw price move back above the 13167 level stopping just short of the midline@13315.
It reached the Hourly boundaries at 13303 to set the high of the session as shown below on the H1 chart.
Note how well price moves up and down the zones…
