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 wasn’t planning to trade today but last night I took a look at the charts at noticed that the Grid showed that if price broke below the D1 Bull Mid-Channel there was clear space – except the H1 Bull Channel – on the way down to the lower D1 Bull boundary.
This is a quick update as we’ve family arriving very soon, the headlines are:
- The bearish call was correct.
- I was at my desk at 06:30 and the sell setup was looking good.
- At 06:50 price moved up to the perfect sell position at the RESCON confluence of:
1) D1 Bear Mid-Channel.
2) H1 Bear Channel
3) The 61.8 level at 12477.5 - I was unable to enter the trade at 06:50 due to the spread being 5.3 pips 🙁 It proved to be the perfect entry point, the spread reduced to 0.8 pips at 06:58, just before the European open at 7am.
- I took a great sell 07:03 and moved my target down in anticipation of the bear move down. I trailed my stop to reduce risk and ended up being stopped out for -0.52R after it had passed the original 2R target.
- At 07:27 I had a dose of FOMO, entered a sell trade, resisted moving my stop but on this occasion had I moved it up slightly I would have had a great winner but instead took a -0.99R loss.
- At 8am the London injection of energy sent price down strongly confirming my read of price action. I entered a sell trade after a brief retrace to the Open, a good call and once again moved my target down. It was a great trade but I only got +0.55R from it 🙁
- At 08:44 I took a Golden Zone Sell M5 MAB that was another great sell trade that went down perfectly to the H1 Bull Channel, my target was just below it, above the D1 Bull Channel, I ended up with a +1.75R winner.
So, after 4 sell trades I ended up with +0.79R. I should have taken more than this from the guidance the Grid gave but such are the fine margins we have to live with.
Despite this it’s a great end to August after I’ve spent this month going deeper into the Price Action Grid.
Below are the screenshots from this mornings trading.
This first one is from last night on the H4 chart. It shows how price two days ago failed to hold above the upper D1 Bull Channel and the D1 EQZ level at 12577.5 followed by yesterdays move back down into the channel.
The potential for a continued move down from the D1 Bull Mid-Channel to the lower boundary is what I based my bearish reasoning on.
This next one shows the M15 chart and the great sell trade entry at 12477.5, I was unable to take this due to spread being 5.3 pips at the time.
The one below shows the great GZ M1 Sell MAB at 07:03 and how I was just stopped out.
The one below shows the FOMO mentioned above. It was poor trade due to indiscipline but had I moved my stop to just above the 61.8 level at 12466.3 it would have been a good call and kept me in the trade as price moved down afterwards.
This last one shows the two further sell trades I took that were winners. They were both good setups and I had great entries but did not maximize the profit potential 🙁
Note how price set the Low right on the H1 Bull Channel, my target was at 12338.0, that was aggressive and greedy I guess but overall I’m happy to have read the early price action well based on the H4 chart above that I took a screenshot of last night.
