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….
Price eventually broke below 12350 so I marked up the M5 sell MAB and entered as shown. I went well but failed to reach the 2R target. I moved my stop at 1R to half the risk but when price came back up to the 12350 level I moved it back because I’ve seen such a major level require two failed attempts before the bulls give up and didn’t want to get just stopped out only for it to on and be a winner.
That didn’t work out, that’s the challenge of trade management!
The trade setup passed all the boxes for me and I’d take it again…..
I could argue I was a wee bit too generous with my stop but the 2R was above point B which is always ideal.
The hourly chart show why this level is key. We need to see a clear break below, if so then a sell trade on the retrace back up to it might be on.
This screenshot shows why we must be very careful at key levels. The move below 12350 was soon met by the bulls which trapped any aggressive bears selling at the level.
The triggered stops of the trapped bears produced the bull spike up up, stand aside and wait patiently for clear price action.
Range session so far with the key level@12350 in play. The spike down I used to mark up possible reversal FIBCON and would have worked out for a quick 2R but I passed on it.