Mon 22nd Jun

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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.

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17:14

Great But Fast Moving REVFIB

After seeing this REVFIB that Alex mentioned in the comments I decided to mark it up because it was a textbook REVFIB. It had:

  • Price had moved down strongly to a major support level, in this case, it was the midline@12207. See the M30 screenshot below to see that the level had recently supported price.
  • The M1 Sell MAB was a low probability.
  • Price moved to meet the M5 EMA resulting in a sell M5 MAB back down to the GZ.

The tricky bit would have been the speed at which price came down the 61.8 level – perfectly – and reversed back up.

Compare this with the examples on the website.

11:57

M5 Sell MAB Winner, +1.99R

I’m SO pleased with this trade, again, not because it was a winner BUT because I anticipated it using the Grid and was “The Bear” 🙂

After reversing off the High and seeing the M1 Sell MAB@12346 I reasoned that if the D1 EQZ@12281 is the bears’ target then maybe a sell setup will present itself. It did and I really liked the GZ and the RR from the earlier move up. The confluence was excellent:

  • M5 MAB (stopped just short of it).
  • 61.8 level@12330
  • Grid midline@12327
  • Great RR from earlier.
  • M1 Bear Channel midline – see screenshot below for this additional confluence

I’d anticipated this BEFORE point B had fully formed!!

What I had to do was Be The Bear and accept that price might not pullback. It felt good to be SO clear about that. At one point I had to leave my desk so I set up a Sell-Limit just in case – see screenshot below.

My stop was quite generous but I wanted to cover the Grid level above at 12337. I ended up entering using the Trade Tool and 8 minutes later it came in. 

It feels great to start this new phase with the updated Grid and have two winners. I used the Grid and stuck to my rules, the Grid is precise and accurate providing vital guidance  🙂

I’m done trading for the day as I have a few things to do then I have to go cut the grass…

The updated s/w looks good, let me know of anything unexpected, later in the week I’ll provide more details once things have settled down.

Below are two screenshots, both have the M1 Bear Channels overlaid. The first shows the anticipated setup, the second shows a Sell Limit as I had to leave my desk.

10:19

M1 Buy MAB Winner, +2.04R

Very pleased with this trade and not just because it’s a winner.

Today is my first day back trading for a few weeks due to the s/w updates etc. When I set up this morning I realized that I also have to get used to the updated Grid.

Note that /32 midlines are now displayed by default on the M1 time frame. The reason I added them is I noticed there were other micro-levels in play, switch to the M1 time frame, and scroll left. To see what level a midline is hover the mouse over it. They can be removed if preferred but it’s worth getting used to them. On some of the Forex charts such as the EURUSD they are very clear and add an additional level of granularity when trading the M1 and M5 time frames.

When I noticed that price had broken and closed above the 12355 level I watched see what happened. Looking at my higher time frame install I had the M30 chart displayed and it showed VERY clearly how important this midline was – see the screenshot below.

When price began to build a micro-base on this level I overlaid the M1 Bull Channels to see a channel boundary supporting a buy trade – see the screenshot below.

So when price pulled back to the level and channel boundary I took the buy trade, my target was right on the 12392 midline, 7:17 minutes later it came in 🙂

So even though this was not a textbook A-B-C pullback to a very clear GZ I used the updated Grid (horizontal structure first then followed by the M1 Bull channels to look for additional confluence) to guide me. We have something very unique with the Grid, I firmly believe that learning to trust it will lead to profitability and mastery!

See the two screenshots below, one with the channels overlaid, the other is the M30 chart I was using to support the trade. I’ve highlighted the 12355 level to show how precise and important it is.

09:26

Rab’s Winner

I just wanted to comment on this setup that Rab took, it resulted in a winner – see comments below – with his target being just above the midline@12133

It’s a great example of a higher time frame setup with great recent RR structure at precisely the 61.8 level as shown by the top of the GZ.

 

06:55

Overnight FIBCON (H1 MAB)

Well spotted Rab !!

A sell H1 MAB formed overnight on the M15 chart. It has great structure with Grid levels in play:

  • Point A is at Yes High@12445
  • Point is pretty much at the bottom of the D1 EQZ@11992
  • Point C, the 61.8 level is at the High, just below the D1 EQZ@12281

The spread was 5 pips at 5 am but Rab took it, good luck!

06:27

Price Below GZ on Daily

After spending much of last week in the Daily GZ price broke below it on Friday. The 12281 (50%) level is still key, if price cannot break back above it then we may see a move down to 12133

13 thoughts on “Mon 22nd Jun”

  4. Some good trades today!

    I got on the M1 MAB that occured at point A of your set up.
    I shoe-horned in the fib a bit, but I liked the confluence between the moving averages, and after what looked like a double top I wanted to be in a Sell trade. I brought my stop loss to breakeven early, and took profits at the first sign that price might have found support.

    https://blackboxsoftwaresolutions.com/wp-content/uploads/screenshots/themabtrader/ge30.sb_M1_22jun2020_1107_19147490_sell.png

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