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 spent too long looking at the M1 Micro-Channel and entered a sell. Did not work out 🙁
I’ve just taken a look at the last few hours of price action since the sell winner and noticed that price continued to sell off after breaking below the D1 EQZ level at 11987.7, it formed the session low just above the D1 Bull Mid-Channel.
It then went into a range whilst order-flow rebalanced itself. This range was actually a gently sloping bear channel as shown by the M1 Micro-Channel.
Look what happened when the M5 MA (red line) caught up with price. It was confluent with the top of the channel and the top of the M5 EQZ at 11960.6 and offered a sell trade back down to the bottom of the channel and M5 EQZ zone.
A 3R trade was possible with good timing!!
Note how price has moved back up into the channel, this is a great example of how the Price Action Grid can assist us in taking 2R+ trades from Micro-Structure . We have to ‘Be The Bear’ and study the price action day in day out and learn to spot these patterns.
Price Action is a language and like any language it takes time to learn.
I’ve just taken a sell trade when price moved back down from the Open to test the H1 Bear Channel.
This was NOT a FIBCON or MAB BUT I’d seen this price action before and on the second attempt to break below the channel I entered the trade.
I closed out just above the 12000 level for +2.31R, very happy and in profit for the day 🙂
After reviewing the Golden Low-High Buy trade earlier it’s worth pointing out how good a setup it was, even though I didn’t trade it profitably 🙁
The M15 chart above shows how price moved back up to the intersection of the D1 and H1 Bull Channels.
It’s common to see price move between the Daily and Hourly Grid structure like this, the challenge of course is trading it profitably!!
I’ve just setup my laptop and monitors after the trip up yesterday. I will keep an eye on things but will be unable to trade throughout the day as normal.
Yesterday price continued the bearish mood reaching 12034.1, today its set the current session low at 11986.4, at the bottom of the D1 EQZ shown above.
Once again the Grid in action.
After setting up my laptop price was moving below the Open. I reasoned a Golden Low-High Buy trade was possible at the H1 Bear Channel.
Price briefly retraced back up the Open, I positioned the Trade Tool and was SO close to taking the sell down to the Golden Low-High when price gapped down 🙁
I took the Buy trade but did not get a good entry and then decided to reduce my risk only to get stopped out before price went on up and would have given me the 2R winner.
Such fine margins!!!
I then took the M5+M15 Sell MAB that was structurally good. It immediately went in my favour which is always cool but it then reversed and continued on up. However, I did reduce my risk which went in my favour on this occasion.
So, two losing trades and was SO close to taking the sell down to the Golden Low-High zone which was a potential 3R based on my read.
The M5+M15 Sell MAB I can reason was low probability due to the context of price moving up off the H1 Bear Channel and the 61.8 level of the Zone.
This is the fine margins and reality of trading, it’s part of the journey, embrace it, minimize risk, control emotions that can lead to such things as “revenge trading”.
“Be The Bear”, wait patiently for the next setup, be consistent and the traders equation will take care of things 🙂
Yesterday I took two losing sell trades. The first one was a sell at the PM Low, it started well but the M1 MAB sent price back up. I moved my stop based on an intersection on the M5 chart, did not work out and resulted in a -1.60R loser – Ouch 🙁
The second sell was at an area of RESCON:
- D1 EQZ Mid-line at 12135.7, this was a major level as seen on the Daily chart.
- H1 Bull Mid-Channel
- H1 Bear Mid-Channel
The bulls took over 40 minutes but they eventually broke up through it resulting in another loser.
This trade was rushed as seen by my trade entry point, it was due to FOMO. Had I been more patient I may have waited for better value and ensured my stop was above the 12154.6 level.
I had to stop at this point, however, price only reached the H1 EQZ level at 12154.6 before selling off to test the 12000 level. I’d moved my target on the second trade down to 12050.0 anticipating this based on the Daily and H4 charts, had I not been stopped out that would have been a multiple R winner!
The point here is that we must be consistent in our reasoning knowing that eventually we will learn to master price action and multiple R winners will be normal.
Losers are are part of the game but a consistent approach and controlling our emotions will allow the traders equation to work its magic 🙂