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….
To distinquish between the different Key Zones I’ll use the following from now on:
- Hourly Key Zones = H-KZ
- Intraday Key Zones = I-KZ
I took the M5 sell MAB when price retraced back up to the D1 EQZ@13463, it started well but once price failed to continue below Yes Low I closed out due to the price action so far this morning, that proved a good call.
It’s been in a small range and did provide two decent sell opportunities, an M1 Sell MAB at 08:30 and yet another Sell Reversal FIBCON when price moved back up to the H-KZ@13489
Selling at the 13489 level was also justified based on point A being taken from the HH produced ay the 7am candle at 13518 and point B from the LL’s at 13445, this produced a GZ where the 61.8 level was confluent with 13489
Over the last few weeks I’ve noticed several REVERSAL FIBCONs (both buy and sell) when price reaches major key levels, most often the H-KZs which are shown by the magenta lines.
The one today at 09:18 was a Grade A which I didn’t see in real-time but take a good look at it:
- Point A was at the H-KZ + I-KZ@ 13490
- Point B was at the bottom of the I-KZ@13476
- The GZ was just above the top of the same I-KZ.
This was another great example of at least two components of the Grid forming part of the A-B-C pattern. The context was also excellent, take a look at the H1 chart and look-left from this level, note 2pm and 4pm last wednesday on the 5th Feb.
We must hard-wire into our reasoning and thinking when price reaches these levels “Will this produce a Reversal FIBCON?”