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….
Whilst updating the blog and having a break I’ve just noticed the decent GZ M1 Buy FIBCON as price moved back up.
The 61.8 at 12383.9 sits perfectly on the top of the M5 EQZ. The measured move projection took it up to the short-yerm keyzone.
This was pretty much a repeat of yesterdays Sell Limit PO at RESCON. I anticipated the move up once the session low had formed at the area of SUPCON, this was all based on Grid structure.
I was totally ‘The Bear’ and waited patiently for price to try and break above the zone of RESCON. Eventually it did by breaking sharply above the H1 Bull Channel, the RESCON consisted of:
- H1 Bull Channel
- H1 Bear Channel
- H1 EQZ boundary at 12428.2
- M5 EQZ
- Yes High
- D1 Bull Mid-Channel
I used the Trade Tool to enter, my patience was rewarded with a great entry and once again the setup demonstrates how accurate and powerful Grid intersections are!!
I decided to move my target lower based on the power of the possible rejection, I chose the bottom of a zone that I’d marked up on the M15 chart mentioned below at start of todays blog.
After moving between the H1 Bull and Bear channels price eventually broke below the short-term support level to reward me with a +3.25R winner 🙂
My reasoning was identical to yesterday and based totally on Grid structure, let’s continue to go deeper into the ‘Holy Grid’ 🙂 🙂
One comment I’ll end with is how pleased I am that I patiently waited for the push up through the RESCON instead of jumping in earlier and being tempted to move my stop etc., I hope this is something that becomes a great habit and not a one-off!
Below is the H1 chart showing yesterdays and todays sell trades at RESCON. Note the Grid intersection of components listed above.
After the 8am open price moved up strongly and after yesterdays rejected at major RESCON I was planning to sell again.
However, on the way up price formed a micro ascending triangle from which price pushed on up to test perfectly the H1 Bull Channel. When price reversed there was some short-term weakness supported by the M5 chart.
I sold as shown and almost got a very quick 2R winner and should have locked in more profit due to the bullish context. Such fine margins once again.
This was a CT trade that I got right BUT not the type I felt is a WTA. There was certainly a bit of FOMO involved after the rejection at the Bull Channel but I felt I managed it well by moving my stop to at least below trade entry.
I sat down at my desk at 06:55am, later than usual and my first trade reflected not following my plan!!
I did not look closely at the Grid on the M15 and H1 charts before 7am and asking myself some basic questions before considering an early trade.
I only looked at M1 chart and when price gapped up at 7am then moved on up to form a higher-high I put the FIB tool on in auto-pilot as shown. I entered a GZ M1 Buy MAB but it soon failed and price sold off strongly.
I then asked myself what was going on to produce the bear spike? The answer was on the M15 chart (below) and the Grid structure already present.
There was a short-term Golden Sell Zone if you took point A from the H1 Bull Channel and point B at the session low. A few hours earlier price had already entered this zone and reached the 61.8 level to produce the current session high.
I’ve marked the 7am spike up into the zone. Price quickly reversed down to the top of the zone at 12361.0, that’s where I entered the buy trade.
Had I marked up my M15 chart as shown I may well have talked myself out of the buy trade and considered the sell back down into the zone.
Price then moved down to the bottom of the zone – perfectly – where SUPCON was present in the form of:
- H1 Bear Mid-Channel.
- H1 Bull Mid-Channel
- Open
- D1 Bear Channel just below the bottom of the zone.
- H4 MA just below the D1 Bear Channel.
Once again the target was key Grid structure, this was the session low and price moved up strongly from this zone of SUPCON.
I’m back!
Good job Mr. Phi, glad to see those RESCON working! I doubted too much on that one, had the trade tool right there but feared a PW High top so decided not to trade it. I am happy that someone else did and was successful!
I did enter two trades hoping to see a quick retracement after it touched the H1 MAB however I didn’t wait long enough. Check it out:
https://blackboxsoftwaresolutions.com/wp-content/uploads/2018/08/dax30sb_M15_22aug2018_0315_xxxxxxxx_xxx_2018-08-22-H1-GZ-MAB.gif
Good to have you back, I hope you had a great time with family!!
You have a tiny profit 🙂 but if left to run the 2R is currently very close.
I did note the PW Week High but after yesterday when the RESCON held I decided focus on the close confluence of all the other structure, it proved a good call 🙂