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….
Another day of fine margins…
The 3rd and 4th losing trades were due to FOMO and resulted in me not entering where I’d decided to based on an M15 zone.
After price finally broke through the 11450 level there were two possible Sell MAB’s, the M1 and M5.
Due to the D1 Bull Channel, the H1 EQZ Mid-line@11452.8 and the H1 Bear Channel I chose the M1 MAB. The better value was the M5 MAB at the original point B mentioned earlier.
This was a great example of where to use the custom Limit Order to filter a spike at the 11458 level.
I don’t use Sell Stops that often but the M5 EQZ@11468.8 had a lot of pressure building up if price broke below it. My 2R was just below the D1 Bull Channel but I knew price would have to break below the earlier point B that I extended across.
I moved my stop to BE when it got close to that level as it had previously moved up quickly off it.
I got stopped as price almost moved up to reach my original stop. Since then it’s struggled to get below the point B until just now when it spiked down to my 2R target!!
Yet another should have left alone…
This was a good GZ M1 Sell FIBCON that formed part of the topping pattern. I trailed my stop to just above the M5 EQZ Mid-line@11476.6 but once again had I left it alone the 2R would have come in!!
I liked the setup and context, should have the 2R though, would take it again.
After not trading since this morning I got drawn into two sell trades at RESCON just after 16:00
I was SO close and had I stuck with a zone on my M15 chart then I’d have had a winner, another case of FOMO!!
The Trade Tool Entry level@11495 is the top of an M15 zone that had I not changed anything I planned to sell until price looked like it was struggling to go higher at around the 11475 level.
I’d got the entry perfect just gave into FOMO – Again!!!
I’ve not been trading since popping out earlier and as always it’s SO much easier to see good setups after the event.
I’ve marked up two A-B-C zones with the second one having an M5 Sell MAB followed by a FIBCON.
The first A-B-C pattern is the Inner-FIBCON where point B is the M5 MAB that Joel took.
Both A-B-C patterns had good Role-Reversal structure when looking-left 🙂
This is great example of the power of the M1 MAB when in context.
The move up above the PW Low in the M5 EQZ was followed by a micro-range (aka a bullish rectangle). Price was waiting the M1 MAB to catch up and when it did it produced the final exhaustive push up before stalling and reversing.
I was waiting to sell at 11450 and the H4 MAB but it fell just short.
After the early bullish mood I took a late M1 MAB just after 8am.
Price did pullback to just above my stop for another M1 MAB and that was enough to send price up to the PW Low which I reasoned was the first target of the bulls. The 2R was just below the PW Low so this one played out well.
I had considered selling at the PW Low but a much better value sell looks to be the H4 MAB at the 11450 level where the D1 Bull Channel and H1 Bear Channel form a zone of RESCON.
This was a sell at the High plus the M5 EQZ@11363.0 plus the D1 Bear Channel plus the H1 MAB.
I got a good entry and it started well but but then pushed on up to the H1 Bear Mid-Channel.
On the M15 chart when you take point A from the PW Low it’s a GZ with the 61.8 level@11358.9 which is why I took the trade.
It was also a top of a range sell that didn’t work out.