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….
11:24
Developing Pattern Recognition Circuitry
Above is the famous FEDEX logo that a hidden arrow designed in to it. There is also a bakers serving spoon hidden in the letter e.
Most people will not spot these unless they are pointed out, then it’s all you see due to the brains pattern recognition circuitry being updated. This is similar to when you decide on a new car, make and colour then seem to see them everywhere.
They were always there it’s just that now the brain notices them whereas before information it’s not interested in or trained to see is filtered.
I’m feeling that process happening with regards to the “5 Wick Zones”, after watching the video on them I’m now seeing them everywhere.
This is fascinating stuff and has great potential to enhance our trading decisions. I’ve seen times where multiple wicks stand out but had no clear strategy on how best to use them in my trading decisions.
Since watching the video (see yesterdays blog) I’m now going to mark them up to hard-wire the pattern recogintion skill. What I really like about them is that they are a Pure Price Action Pattern which is how we trade. This is not trading Candlesticks!
10:54
Two Buy Setups
When price broke back above the H1 EQZ@13686 two buy setups formed that I missed, they were both good buy trades and ticked all the boxes.
10:26
5 Wick Zones Everywhere!
At the end of yesterday’s blog I mentioned a Price Action Pattern that I came across over the weekend, the “5 Wick Zone”.
They are not yet hard-wired into my pattern recognition but they MUST be as they provide a very good guide as to where strong support or resistance is. This can then be factored into trading decisions.
From now on I’ll be marking up the 5WZs in real-time to develop the neural circuitry and see how they can support trading decisions.
Note the 5WZ that formed at 13657 that then led to a Super-Micro Reversal FIBCON (see above) followed by another Reversal FIBCON at the HKZ@13663
09:12
GZ M1 Micro Sell into 5 Wick Zone, -1.00R
I took the Micro M1+M5 MAB sell@13686 only to notice that I’d sold into a 5 Wick Zone!!
This new pattern is not yet hard-wired into my thinking and reasoning and had it been I’d have passed on this one, especially as it was micro structure.
09:07
GZ M1 Buy FIBCON BE, +0.04R
Took this buy trade too early as the H1 EQZ@13686 looked like it was going to hold price. It then moved dwon to test the 61.8 level before a decent bounce that would have resulted in over 1.5R with good timing.
Price turned around at the Inner FIBCON’s GZ, not shown.
Another example of best wait for the best value, these are tough to call.