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….
After last weeks move down through the daily bull channel price has spent today moving between:
- H1 Bull Channel
- H1 Bear Mid-Channel
- D1 Bull Channel
- D1 Bear Channel
This has resulted in a range day with the best setup being the H1 Sell MAB mentioned earlier. We must study what price tends to do when deciding the next move.
Note how price interacts with hourly bull and bear channels after it fails to hold above the Daily Bull and Daily EQZ last week at 12577.5
This Daily and Hourly grid structure captures all the key turning points as price makes its way down.
The 4-hour chart above shows the Daily Grid structure overlaid. Price is currently finding support on the D1 Bull channel boundary, the question is:
- Will price move up back into the bull channel or
- Move on down to where the D1 EQZ at 12283.7 and D1 Bear channel is.
Below is the M15 chart which along with the Daily Grid structure has the Hourly Grid structure overlaid.
Since testing Yes Low and PW Low (Friday) price has been contained between the D1 Bull Channel and the H1 channels (Bull and Mid-Bear).
I’m not trading today but will post the occasional update on what’s been going on.
Last Friday at 17:00 price eventually moved down to the D1 Bull Channel as anticipated. This morning price has been testing both the D1 and H1 Bull channels for support.
This has resulted in price currently being contained between them, the above screenshot shows this. Since 8am price moved up to test Yes Close then moved down to test the Low.
The Micro-Bull spike back up above the D1 Bull Channel was confluent with the top of the M5 EQZ at 12331.0, this was followed by a very precise move up to test the H1 Bull channel. This was a great sell setup due to the confluence of:
- H1 MAB
- H1 Bull Channel
- H1 Bear Mid-Channel
- 61.8 level at 12355.8 (see below)
- M5 Bull and Bear Channel intersection (not shown)
- Top of M15 KeyZone (see below)
Below is the M15 chart showing the Golden Zone and the M15 KeyZone. This H1 MAB sent price back down to the D1 Bull Channel and offered a potential 4-5R with good timing.
This retrospective analysis is easy of course BUT it is part of the process as it helps to develop confidence in the Price Action Grid. Trusting Grid structure is vital and the only way to develop that trust is to watch price interact with it day in day out.