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.
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.
This has become a major issue for me and I need to work on this. I’d failed to use the M15 and M30 charts to look for support as I was only looking at the M5.
It ticked all the boxes and with a stop below the bottom of the IKZ this was a great trade.
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.
Above is the famous FEDEX logo that a hidden arrow designed in to it. There is also a bakers serving spoon hidden in the letter e.
Most people will not spot these unless they are pointed out, then it’s all you see due to the brains pattern recognition circuitry being updated. This is similar to when you decide on a new car, make and colour then seem to see them everywhere.
They were always there it’s just that now the brain notices them whereas before information it’s not interested in or trained to see is filtered.
I’m feeling that process happening with regards to the “5 Wick Zones”, after watching the video on them I’m now seeing them everywhere.
This is fascinating stuff and has great potential to enhance our trading decisions. I’ve seen times where multiple wicks stand out but had no clear strategy on how best to use them in my trading decisions.
Since watching the video (see yesterdays blog) I’m now going to mark them up to hard-wire the pattern recogintion skill. What I really like about them is that they are a Pure Price Action Pattern which is how we trade. This is not trading Candlesticks!
At the end of yesterday’s blog I mentioned a Price Action Pattern that I came across over the weekend, the “5 Wick Zone”.
They are not yet hard-wired into my pattern recognition but they MUST be as they provide a very good guide as to where strong support or resistance is. This can then be factored into trading decisions.
From now on I’ll be marking up the 5WZs in real-time to develop the neural circuitry and see how they can support trading decisions.
Note the 5WZ that formed at 13657 that then led to a Super-Micro Reversal FIBCON (see above) followed by another Reversal FIBCON at the HKZ@13663
I took the Micro M1+M5 MAB sell@13686 only to notice that I’d sold into a 5 Wick Zone!!
This new pattern is not yet hard-wired into my thinking and reasoning and had it been I’d have passed on this one, especially as it was micro structure.
Took this buy trade too early as the H1 EQZ@13686 looked like it was going to hold price. It then moved dwon to test the 61.8 level before a decent bounce that would have resulted in over 1.5R with good timing.
Price turned around at the Inner FIBCON’s GZ, not shown.
Another example of best wait for the best value, these are tough to call.
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.
Over the weekend I came across this video on “The Trading Channel” and found it very interesting as I want to go deeper into Pure Price Action setups.
Steven Hart is a very accomplished trader and I really like what he’s doing. He uses our language such as Pure Price Action and I’m looking for the kind of teaching he’s very gifted at.
This morning right after 8am price formed a text book “5 Wick” buy setup and having just re-watched the video on it it’s perfect!
The blue line at 13766 is a level based on the close of the bear candles that form the setup, see the video for full details.
For a while now I’ve been wanting to get more out of the Price Action Grid but only using price action setups. This one is new to me and I plan to add this to my trading plan.
For a while now I’ve been drawn to candles that group together with their wicks standing out but not developed a price action strategy to take advantage of them, this video does that.
Below is link to this video, this is one worth adding to our arsenal….
Below is another 5 Wick buy setup that formed today but this time on the hourly chart. A great example of the fractal nature of price action, the one above is on the 1 minute chart, this one is one the hourly. The first hourly candle in the setup contains the 1 minute one above 🙂
The blue line at 13763 is a level based on the close of the bear candles that form the setup, see the video for full details.
We will study these closely and look to see how often they form and how reliable they are.
This one was a super micro one that occured when price moved down to the D1 EQZ@13757, I did not see this in real-time and it required great timing and precision to see and trade but the setup was there due to the 13757 level had good context.
So far there have been two Reversal FIBCONs, both micro setups and both at levels/zones where a reversal was a high probability.
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.
I used a Sell Limit to enter this trade and was pleased with the overall setup. The only think going against this trade was it was a sell trade in a bullish envrionment but it ticked enough boxes for me.
It took 51 minutes to play out but eventually resulted in a loser.
I passed on the M1 Sell MAB due to the context, a good call. I then entered a sell FIBCON as shown with point A taken from the PW High and point B from the H1 EQZ@13558, this setup was much better value but I was still wary of the context so once price went into a micro-range I closed out for a small winner.
Price continued on up to the PM High and then reversed back down. I was anticipating a Reversal FIBCON and entered a sell trade using the Trade Tool but the better option would have been to use a Custom Sell Limit order to filter spikes.
A gap up meant I took a 1.29R loser, I entered another sell trade for a 2R winner. Price then continued on down all the way to the H1 EQZ@13558, the Reversal FIBCON did not structurally play out on this occasion.
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.
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?”
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.
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.
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.
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.
This M1 Buy Micro-MAB took about 7 minutes to form but had excellent structure and context.
Price was moving up towards the top of a H4 KeyZone@13240 so this was a good setup that was likely part of price making it’s way up.
The GZ was at the top of the KZ plus when you look-left the Role-Reversal (point B of the earlier M5 Buy MAB) was perfect. I entered using the Trade Tool with the 2R target just above point B, at the top of the next KZ.
Price reached the Daily 13167 level as anticipated and then broke above it.
I took the M1 Buy MAB as shown. It had:
Good structure.
Good context – Buy setup.
The KZs were in play in at points A, B and C.
I trailed my stop once price broke back above 13175 but it failed to hold this level and took me out for a very small winner.
The only thing against the trade is the zone between 13167 (Daily EQZ) – 13176 (H1 EQZ), this is taking time to resolve. When you look left on the M30 and H1 charts you can see this has been an event zone between the bulls and the bears.
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.
Just taken a look and spotted an M1 Buy MAB that was decent.
Point B, the Higher-High at the top of the KeyZone@13020 was strong and clear enough to consider a buy on a retrace. The M1 MAB played out perfectly sending price back above point B to the bottom of the next KeyZone@13033
If you were to take point A from the top of the KeyZone@13004 the GZ would have been confluent with the bottom of the KeyZone above AND perfectly confluent with the M1 MAB.
That’s why is worth trying to fit points A & B to either the top or bottom (using the wicks and closes) of the KeyZones in play. We NEVER force-fit but let the price action and Grid guide us.
I’ve just noticed the Buy Reversal FIBCON that formed as price moved back up.
This did have good structure and context plus the 61.8 level was confluent with the 13000 BRN level.
I’ve seen several of these lately but not in real-time, this one was worth taking especially as I’d passed on the M1 sell MAB due to reasoning price would be trying to move back up off the BOR.
The A-B impulsive leg was very clear with point B produced by an M5 Sell MAB.
These Reversal FIBCONs Buys have some common traits:
The M1 MAB will be low probability.
The M5 MAB often will produce a point B
Price will retrace into the Golden Zone offering a high value entry.
I’d left my desk for a while and missed this – We MUST ask ourselves :
“If price is testing the BOR or TOR then MAYBE a Reversal FIBCON will form?”
This is where the synergy of community can benefit us all…….
The M1 Sell MAB after the break below 13007 was a low probability setup due to the context. The H1 EQZ Midline@12984 is the BOR and can be seen clearly on the M15 chart.
If price does break clearly below 12984 then a sell setup might form?
