Daily DAX

Mon 27th Aug

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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:

17:35

Video of Buy and Sell Trades Below

This video is of the two trades taken earlier. It shows the anticipation of the sell zone (RESCON) and why I took the M5 buy MAB as price made its way up to the zone.

00:00 – 05:23    Trade setup and anticipation.

05:24 – 06:49    M5 Buy MAB trade live.

06:50 – 07:22   Buy trade complete, about to enter sell trade.

07:23 – 12:02   Live sell trade.

12:03 – 17:55   Post trade analysis.

10:43

Some thoughts….

Over the last week I have felt clear shift in my read of price action, this has been a direct result of going deeper into the Price Action Grid during August. Friday and today are a direct result of that process where Grid structure and intersections have been identified well in advance allowing time to plan trade entry.

There are two final filters I have once the trade has been marked up:

  • Can I talk myself out of the trade?
  • Do I have that feeling of “Whatever the outcome, I’d take this trade again.”

The challenge we have as traders is mastering our emotions and that requires brutal honesty at times.

Blackbox believe the Price Action Grid is inspired and unique and not limited to just the DAX. We choose to specialize trading the DAX for reasons explained on the website but the Grid can be found on all markets, for example the EURUSD.

We look forward to sharing our unique take on Price Action with the wider trading community now we’re ready to take that step!!

09:11

Sell at RESCON Winner, +2.17R

I caught the juicy salmon we’d anticipated 🙂

At 08:10 price reached the area of RESCON mentioned at the start of the blog, I entered a sell trade using the Trade Tool. As with Friday’s blog commentary it proved a good call and after about 8 minutes the bears succeeded in reversing price.

I didn’t move my target on this occasion so ended up with a +2.17R winner which following on from the earlier GZ M5 Buy MAB has been a great start to the Bank Holiday, all by 08:28 !!

Just like on Friday, we used the Holy Grid 🙂 to anticipate possible event zones of RESCON or SUPCON. This then provides us with a clue as to where high probability, high quality, high energy setups might occur, otherwise known as ‘Juicy Salmon’ 🙂

On the way up or down to these zones we should also expect to see good setups, as with the GZ M5 Buy MAB earlier. However, once you learn to trust Grid structure the main focus should always be the intersections and we must try to filter the poor quality setups, otherwise known as minnows.

Below are the updated screenshots for:

  • H1 chart.
  • H4 chart.
  • D1 chart.

Each shows how price reached the area of RESCON we’d identified at the start of the blog.

09:03

GZ M5 MAB Buy Winner, +3.92R

Since 8am its been busy!

I took the GZ M5 MAB at 08:03 when price retraced to the H1 Bull Channel and the 61.8 level when point A is taken from PW High/Yes High. After a brief move below my entry level price moved on up to the area of RESCON mentioned at the start of the blog.

I moved my target based on price wanting to test this area of RESCON, it resulted in a great start to the session 🙂

Things happened fast so the screenshot also shows the following sell trade I entered when price reached the sell zone at 12492.2, this was also a winner, see above.

07:16

Possible event zone around 12500

Price has started the week in bullish mode, however, there is an area of RESCON just below 12500 as shown on the H1 chart, it has the following confluence and is also supported by the H4 and Daily charts, see below.

  • H1 EQZ Mid-line
  • D1 Bear Mid-Channel
  • Top of KeyZone

It’s a bank holiday in the UK so not sure what 8am will bring in terms of energy into the market.

Below are two more screenshots:

  1. The Daily chart showing a GZ FIBCON where the 61.8 level is at 12490.2, confluent with the H1 EQZ Mid-line above. The GZ-RR zone is very good when you look-left.
  2. The 4-hour chart showing the top of a KeyZone defined a few weeks ago, its top is confluent with the D1 Bear Mid-Channel.

Let’s watch this zone for any juicy salmon……..

Fri 24th Aug

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09:00

D1 MAB + RESCON – +2R Winner

Nice RESCON right at the Daily MA supported by as well by the grid!

After looking at Mr. Phi’s post (https://blackboxsoftwaresolutions.com/fri-24th-aug/) and analysing the charts, I marked the zone whit an arrow pointing down and waited till it got there. 

I was a bit conservative with the stop loss, looking for tangible resistance in case it kept going up, but a +2R is a great winner anyway!

Fri 24th Aug

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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:

18:35

Video of Sell Trade Below

This video is of the sell trade taken earlier. It shows the sell zone of RESCON being identified in advance and demonstrates the power of the Price Action Grid.

00:00 – 04:06   Trade setup and anticipation.

04:07 – 09:23   Trade live.

09:24 – 14:25    Post trade analysis.

11:13

SUPCON at H1 Bull Mid-Channel

I had to leave my desk after the earlier winner and have come back to see what happened to price afterwards. This is shown on the M15 chart above.

Price went down to the H1 Bull Mid-Channel and found support at the Open and the top of a keyzone marked up several days ago.

Wished I’d been able to trade 🙁 but it once again shows the power of the Grid in action.

09:37

Sell at RESCON winner, +4.06R

Bless the Holy Grid 🙂 🙂

This is what it’s all about, using the Grid to anticipate high probability, high value, high energy trade setups well in advance. I took the sell at the area of RESCON that was identified pre 7am (see below) for a +4.06R winner 🙂

 Below is the updated H1 chart showing how price moved up strongly to the event zone area (RESCON).  The confluence of:

  • H1 EQZ at 12429.0
  • D1 Bull Mid-Channel
  • D1 MA
  • H1 Bull Channel

meant this was a sell trade based on structure and in real-time feels counter-intuitive due to the strength of the bull move up to zone. The only way to trust the Grid in these situations is to see it for yourself day in day out channelling price and when Grid intersections occur High Energy Events take place.

The trade can be categorized as a Daily MAB, see screenshot below.

Below is the Daily chart showing the MAB.

07:48

Possible event zones

After seeing the Grids effectiveness and importance this week I’ve marked up possible event zones if price break up or down.

First it has to breakout of the H1 wedge its been in for the last few days.

Let’s Be The Bear and wait patiently to see what happens if price moves into them, maybe we’ll see a Juicy Salmon or two 🙂 🙂

As price makes it’s way to these zones there will be lots of minnows BUT also decent salmons so we need to be marking up setups as per our trading plan and following the rules.

Thu 23rd Aug

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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:

17:36

Buy Winner off H1 Bull Mid-Channel, +2.11R

I had to go out earlier and came back to see price had just tested the H1 Bear Channel again and the top of the M15 keyzone (see below).

It was too late to enter a sell trade but was yet another example of how powerful the Grid channels are. Price sold off all the way down to the H1 Bull Mid-Channel that has been supporting price very well over the last several days.

I therefore decided to watch this and entered a buy trade right on the channel and to my delight price reversed and 42 minutes later my +2.11R winner came in 🙂

The more I’m going deeper into the Holy Grid the more I’m seeing great trade setups that have multiple R potential, they’ve always been there, I guess I’m ready now to see them by displaying and combining the different components of the Grid accordingly.

Below is the M15 chart where the arrows show the power of the H1 Bull and Bear channels.

10:12

GZ M5 Buy MAB loser, -0.97R

I anticipated a sell if price moved up to the H1 Bear Channel boundary at around 12410.0 but took my eye off the ball and just missed it 🙁

It was also confluent with a keyzone I’d marked up on the M15 chart (see below), it proved to be a great sell setup and another great example of the power and potential of the Grid structure to guide us in our trading decisions.

I then took the GZ M5 MAB which was a decent setup BUT on this occasion it looks like the power of the H1 Bear Channel rejection made it a lower probability.

Note that the power of the sell off took price down to just above the H1 Bull Mid-channel, clearly a target for the bears based on Grid structure.

This is shown on the M15 chart below, this shows how the sell setup had multiple R potential.

09:39

Buy trade loser, -1.25R

I missed the correct buy setup  and once price moved above the Golden High-low zone I ended up chasing price 🙁

It briefly looked like I would get away with it but not on this occasion.

Thu 23rd Aug

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10:20

GZ M5 FIBCON

M5 Chart

M1 Chart

I guess that if you click on the charts and take a look at it, you might feel as upset as I did! 

Marked a good M5 FIBCON right after the volatility of the London open vanished, waited for it and pressed Ctrl+E right there, on the edge of a reversal that happened after a short hesitation.

Having the M1 MAB above my entry level wasn’t that exciting, but I decided to let it run at least until it goes above my 1R level. Locked in profit after touching +1.5R (as there was a RR zone looking to the left in the M5 chart), raised my take profit level to the H1 bear channel boundary and left it alone. 

The rest is history. Retraced to my entry level, left me out of the trade and went non-stop to my target. A +3.5R ended up being a +0.08R trade.

Should I have left my stop loss at the original level (-1R)? Did I do right locking profit in order not to lose money in case the trend changed? I don’t know. 

I think the answer could have been: take profit at +1.5R where the RR zone was, see what happens and if it comes back down and you like it, enter another trade. Worst case scenario, you end up +0.5R. In this case, I would have ended securing +4R.

 

Wed 22nd Aug

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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:

12:05

GZ M1 Buy FIBCON

Whilst updating the blog and having a break I’ve just noticed the decent GZ M1 Buy FIBCON as price moved back up. 

The 61.8 at 12383.9 sits perfectly on the top of the M5 EQZ. The measured move projection took it up to the short-yerm keyzone.

11:09

Sell at RESCON Winner, +3.25R

This was pretty much a repeat of yesterdays Sell Limit PO at RESCON. I anticipated the move up once the session low had formed at the area of SUPCON, this was all based on Grid structure.

I was totally ‘The Bear’ and waited patiently for price to try and break above the zone of RESCON. Eventually it did by breaking sharply above the H1 Bull Channel, the RESCON consisted of:

  • H1 Bull Channel
  • H1 Bear Channel
  • H1 EQZ boundary at 12428.2
  • M5 EQZ
  • Yes High
  • D1 Bull Mid-Channel

I used the Trade Tool to enter, my patience was rewarded with a great entry and once again the setup demonstrates how accurate and powerful Grid intersections are!!

I decided to move my target lower based on the power of the possible rejection, I chose the bottom of a zone that I’d marked up on the M15 chart mentioned below at start of todays blog.

After moving between the H1 Bull and Bear channels price eventually broke below the short-term support level to reward me with a +3.25R winner 🙂

My reasoning was identical to yesterday and based totally on Grid structure, let’s continue to go deeper into the ‘Holy Grid’ 🙂 🙂

One comment I’ll end with is how pleased I am that I patiently waited for the push up through the RESCON instead of jumping in earlier and being tempted to move my stop etc., I hope this is something that becomes a great habit and not a one-off!

Below is the H1 chart showing yesterdays and todays sell trades at RESCON. Note the Grid intersection of components listed above.

10:56

Sell Micro-Breakout Winner, +0.21R

After the 8am open price moved up strongly and after yesterdays rejected at major RESCON I was planning to sell again.

However, on the way up price formed a micro ascending triangle from which price pushed on up to test perfectly the H1 Bull Channel. When price reversed there was some short-term weakness supported by the M5 chart.

I sold as shown and almost got a very quick 2R winner and should have locked in more profit due to the bullish context. Such fine margins once again.

This was a CT trade that I got right BUT not the type I felt is a WTA. There was certainly a bit of FOMO involved after the rejection at the Bull Channel but I felt I managed it well by moving my stop to at least below trade entry.

 

 

10:26

GZ M1 Buy MAB Loser, -1.01R

I sat down at my desk at 06:55am, later than usual and my first trade reflected not following my plan!!

I did not look closely at the Grid on the M15 and H1 charts before 7am and asking myself some basic questions before considering an early trade.

I only looked at M1 chart and when price gapped up at 7am then moved on up to form a higher-high I put the FIB tool on in auto-pilot as shown. I entered a GZ M1 Buy MAB but it soon failed and price sold off strongly.

I then asked myself what was going on to produce the bear spike? The answer was on the M15 chart (below) and the Grid structure already present.

There was a short-term Golden Sell Zone if you took point A from the H1 Bull Channel and point B at the session low. A few hours earlier price had already entered this zone and reached the 61.8 level to produce the current session high.

I’ve marked the 7am spike up into the zone. Price quickly reversed down to the top of the zone at 12361.0, that’s where I entered the buy trade. 

Had I marked up my M15 chart as shown I may well have talked myself out of the buy trade and considered the sell back down into the zone.

Price then moved down to the bottom of the zone – perfectly – where SUPCON was present in the form of:

  • H1 Bear Mid-Channel.
  • H1 Bull Mid-Channel
  • Open
  • D1 Bear Channel just below the bottom of the zone.
  • H4 MA just below the D1 Bear Channel.

Once again the target was key Grid structure, this was the session low and price moved up strongly from this zone of SUPCON.

Tue 21st Aug

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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:

17:45

GZ Sell M5+M15 MAB

After teh break back below the H1 Bull Channel this excellent M5+M15 MAB formed with point C at the BRN of 12400.0!

I was not at my desk but this was a must take trade, I don’t think I could have talked myself out of this one 🙂

13:04

Sell Limit Winner at RESCON, +1.96R

Recently we’ve been talking about going deeper into the Price Action Grid. The only way to do this is to sit and watch price interact with each component as it moves up and down throughout the trading session.

This requires time, commitment and a routine that allows you to do this. This is therefore not for everyone but for those who vibe with this unique approach let the following be a reminder of the potential rewards available.

I’d identified a zone of RESCON and was waiting for price to move up to it where I was considering a sell trade. The RESCON consisted of the following:

  • D1 Bull Mid-Channel. On the screenshot above it’s hidden by the H1 EQZ boundary at 12428.2
  • H1 EQZ boundary at 12428.2
  • M5 EQZ Mid-line at 12429.0
  • M5 Bull and Bear Channel intersection, see screenshot below.

The H1 EQZ level when viewed on the H1 chart (see below) showed how precisely it had held price last week.

I had to leave my desk and decided to use a Sell Limit PO to enter the trade rather than miss it. There are four screenshots below with arrows showing the Sell at RESCON:

  • M1 Chart. This shows the Sell Limit PO, I used a wider stop-loss than normal to allow for overshoot. This meant my 2R was at 12396.0, however, due to the slippage that occurred when triggering the PO the 2R ended up right on the H1 Bull Channel 🙂
  • M5 Chart. This shows the M5 Bull and Bear Channel intersection along with the M5 EQZ mid-line and the H1 EQZ level.
  • M15 Chart. This shows the same levels along with a measured move projection. See the magenta coloured lines and how the top of the second one is at the area of RESCON.
  • H1 Chart. Look-left to see the previous times price moved up to the H1 EQZ level at 12428.2. Arrows are used to show how precisely the Grid channels price.

These screenshots show how important and powerful the different perspectives each timeframe provide are. They also demonstrate how the Trade Controller environment allows the user to overlay the Price Action Grid in anyway they find useful.

We are currently updating the Price Action Grid section of the website to reflect all of this in more detail.

M1 chart below.

M5 chart below.

M15 chart below.

H1 chart below.

Mon 20th Aug

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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:

10:52

Done for the day….

After price reached the D1 Bear Channel it pulled back to a Golden Buy Zone as shown. The M5 Bull Channel Mid-line was supportive of buying at this level, below is the M5 chart, the arrow shows the mid-bull channel mentioned.

I was not at my desk when this took place and am now done for the day. I’m happy to lock in 2R from the early breakfast 🙂

We worked over the weekend to update the software to auto detect and download updates to the Grid structure and also produce three updated videos that highlight how cool the Price Action Grid is!

Time for a ride as the weathers decent but due to change tomorrow onwards.

10:33

Bullish session so far….

There was a GZ M5 Buy MAB just after 8am which proved to be the best chance to get on the bull move. 

The move back above the H1 bull channel just before 7am was a clue to price wanting to go higher??

It’s currently at the D1 bear channel around 12342.0

 

07:15

Perfect Golden Low-High Buy Winner, +2.08R

At 7am price gapped to the H4 MA for an untradable MAB.

I quickly marked up the buy setup to see the 61.8 was confluent with the current Golden Low-High zone at Yes Close+Open.

I took the buy trade on the retrace and 9 mins later a 2R winner at 07:12 am 🙂

I was tempted to push for more at Yes High but decided to take the 2R to start the week.

After seeing a few of these early Golden Zone setups recently I was ready at 7am and anticipating an early breakfast, this was a perfect one and glad to have caught it 🙂 🙂

Fri 17th Aug

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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:

14:32

GZ M1 MAB But Loser, -0.80R

I should have stayed in sell mode and sold the move back up to the D1 Bear mid-channel.

Instead I took the GZ M1 Buy MAB on the retrace back to the H1 EQZ level at 12154.6, not a good call.

14:24

Sell Breakout, +4.42R Winner

After waiting for price to reach the Golden High-Low zone for a sell I took a sell after price moved back down.

I trailed my stop and once again pushed for more profit as it felt very bearish and if price pushed down through the PM Low it could go much lower. It was a good trade and I was stopped out for +4.42R.

The BIG lesson for me today has been not to be greedy and use structure to close out respectable profits.

I should have closed out at Yes Low!!!

14:09

Two trades taken at Bull Channel

These two trades were taken at the H1 bull channel, one loser, one winner.

When price broke through taking me out for -0.87R I re-entered with a sell trade on the retrace. Once again, I pushed for more profit instead of being happy with  2R and was over 4R in profit at one stage.

I trailed my stop and was taken out for +0.99R

10:44

Top of Range Sell Winner +0.80R

I took a sell when price moved back up to the top of the range. I was a bit late and once again I trailed my stop too closely.

I did this by eye BUT if I’d been using the the FIBCON as shown to guide me I would have not got stopped out. This is a great example of using the FIBCON structure to be more precise when trailing the stop.

10:38

GZ M1 Buy MAB Loser +1.06R

This was not a high quality trade, compared to the first two, Would-not take-again!

It was mid-range but was off the top of the Golden Low-High zone.

10:20

Buy off SUPCON Winner +0.23R

Took buy trade off area of SUPCON:

  • H1 Bull channel
  • H1 Bear Mid-Channel
  • H1 EQZ Mil-line at 12218.6
  • M5 EQZ Mid-Line at 12217.4
  • Monthly MAB
  • 61.8 level from M15 chart

I got a poor entry, my 2R should have been just above Yes Close. Once again I trailed my stop as often the move back up an area of SUPCON like this can be strong.

As shown, once again I trailed my stop too closely and only got  +0.23R.

The setup was excellent, I’d reasoned it out well in advance, a 100% WTA.

 

10:10

Early Golden Low-High Buy Winner +0.71R

Price gapped up at 7am then sold off quickly down to Yes Close and the Open. This was the bottom of the current Golden Low-High zone so took a buy trade.

I should have taken the 2R but was trailing my stop in case the move backup out of the zone had bullish momentum.

I was stopped out for +0.71R, a good trade, the better option was to settle for 2R.

 

 

Thu 16th Aug

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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:

07:36

Early GZ M5 Buy MAB

The energy of the 7am Open often produces good setups.

This is a great example, the spike down at 7am was followed by a move up that did not produce a Higher-High BUT look at where the Golden Zone formed.

Perfectly confluent with:

  • M5 EQZ Mid-line at 12217.4
  • H1 EQZ Mid-line at 12218.6
  • M5 MAB
  • 61.8 level at 12217.3

Look-left to see a great short-term Role-Reversal zone. To spot these these requires being ready and in-the-zone at 7am. Then watch closely as price moves up and down as the energy of the open is injected into the market.

This setup was very good despite no Higher-High. We must be alert and actively anticipating the possibility of these ‘Juicy Salmon’ appearing to give us an early breakfast 🙂