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 ended up taking a few sell trades following the mid-morning sell-off. The first two were based on reasonable A-B-C GZs but didn’t work out.
The third was possible REVFIB just after the US open, did not work out.
I then got caught up in the choppiness at the 12281 level, had a BE, and another loser, magnified by a gap.
Not a great start to July. A funny day for me due to the DAX feed going down for a few hours which meant we decided to watch some training material by Mark Douglas and ended up missing a cracking sell setup into below the 12281 level.
Wow! What a morning.
Before 7 am I posted the trade setup anticipating a REVFIB at 12281 with a bullish GZ in play from the H1 chart. That played out but did not offer a clear buy REVFIB just after 7 am, price just went up.
Then the DAX feed went down at about 7:47 till 10:30 am. We decided to continue watching the Mark Douglas “How to think like a Professional Trader” 4 part series.
When the DAX feed came back online the price spiked around a bit then the bears took control and drove price back below the EQZ@12281 level offering two M1 Sell MABs.
What happened is another great example of how important the Daily EQZs are and once the battle is resolved at the level the winner (in this case the bears) will push price down into the EQZ offering multiple R potential.
This is why REVFIBs are to be mastered because the context in which they occur (reversal at key levels) offers multiple R as price goes back up/down the range or zone.
Whilst this screenshot is not of a REVFIB it shows how a “Continuation FIBCON” produced when price moves down into the EQZ offers the opportunity to ride it down.
Here’s yet another REVFIB that formed when price failed to hold the overnight highs. This is shown on the M5 chart at 5 am, its a cracker!
We must look to specialize in these as they are high probability offering multiple R profit potential. Identifying potential reversal points in the market in advance means we can set alerts to support us in spotting these juicy salmon 🙂
Some days the price action offers great setups, some days not. We must therefore “Be The Bear” and not force anything.
The two screenshots below show this, the one from Monday shows how when price reached the TOR (reversal zones) three great sell micro-REVFIBs occurred.
The one from Tuesday (yesterday) shows that when price reached the TOR (reversal zones) ZERO sell micro-REVFIBs occurred.
We must understand that no two days are the same and accept what the market gives us.
There were not a lot of opportunities yesterday, price stayed within a small range as shown by the daily candle.
We are still above the 12281 level, within a GZ where the 61.8 level is confluent with the EQZ 50% midline@12429.
A strong break above 12429 or below 12281 might signal intention by buyers or sellers?