Tue 20th Oct

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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18:28

M5 Buy MAB Winner, +2.01R

After waiting for the perfect entry on the earlier buy REVFIB off the move down to the BOR  – see screenshot below – I took the next buy setup.

The A-B leg moved up to 12790 to produce a GZ right on the 12762 level, a key midline – see M30 and lower – so I waited for the PB and entered the buy which ended up being an M5 MAB but it was more of a FIBCON as the M5 MA was very flat.

Note that this time I did not wait for the PERFECT PB to the 61.8 level which of course would have worked out this time 🙂

Whilst waiting for the PB I read my Mark Douglas trading plan notes and was SO pleased I took the trade. Not just because it worked out but because it ticked all the boxes – win or lose – and I did not allow the emotion of missing the last trade to affect me.

Below is the buy REVFIB on the M5 chart where I was too fussy and it got away.

13:38

Micro M1 Sell MAB Winner, +2.77R

This was again aggressive but this time the M1 MAB was confluent with the 12799 level.

My earlier buy limit for the REVFIB did not trigger before price moved so it negated the setup for me.

My stop was a bit tight so had to ride out the 12805 level before it finally sold off. I moved my target to just above the 12762 level and got +2.77R but of course, there was more on offer at the 12725 level 🙂

Note how technical the DAX is, just after this screenshot there was a near-perfect reversal at the 12725 level, I did consider this for my target but felt it was being too greedy!!

11:34

Micro M1 Sell MAB Loser, -1.00R

This was aggressive but ended up being the wrong side of the 12799 level.

It had decent micro Role-Reversal at 12790 and I would have considered going for multiple R down to Yes Low but not this time.

07:11

Near bottom of Daily Bear Channel

Yesterday price was contained PERFECTLY between the bear channel midline and the bottom of the bear channel as well as the EQZ midlines of 13021 and 12725.

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