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….
This is a video of the Golden Zone M5 MAB trade mentioned below.
It shows the trade being anticipated BEFORE point B, the Lower-Low formed.
00:00 – 01:18 Intro (white screen).
01:19 – 09:55 Trade setup and anticipation.
09:56 – 13:16 Trade live.
13:17 – 15:57 Post trade analysis.
What makes this one really cool is I anticipated it well in advance, see the the screenshot below.
Whilst price was in the choppy range after 8am I decided to wait for price to break below the session low, at that point it was at the Open/Yes Close. The ideal Golden Sell Zone I reasoned would be a retrace to the current session low where the:
- Open
- Yes Close
- M5 EQZ Mid-line at 12534.8
would all act as confluence to support the sell setup.
Based on this I was able to project where point B (the Lower-Low) would need to reach to support this setup. The screenshot below shows this marked up with 12520.7 being the level required for the perfect ‘Golden Zone’ sell structure to form.
Things played out perfectly, the only thing I would change is to have waited a little bit more to get the best value entry but after a few occasions recently where I’ve been too fussy and missed the trade entry I entered as shown. This meant my 2R profit target was lower than originally planned but the trade went on to be a winner 🙂
Note: On the screenshot above showing the winning trade the session’s ‘Golden High-Low Zone’ has moved down due to the session low moving lower, it has therefore covered the sell ‘Golden Zone’ that was used to enter the trade. This zone is shown below on the screenshot predicting the setup.
What was ideal about this zone was that it had great Role-Reversal price action when looking-left, see second screenshot below of the M15 chart, the arrows show this. This is a great example of why we use our custom setup where a second install of MT4 is displayed on a second monitor to provide higher timeframe context at a glance.
Below is the screenshot anticipating the sell setup, point B needed to be approximately at 12520.7 and that’s exactly what happened 🙂
Note: This was not luck or a one-off. This type of reasoning comes from commitment and passion to studying Price Action day in day out!!
M15 chart below showing the Role-Reversal price action that supported the sell trade.
So far its been a very spikey and choppy 8am open, one or two very fast moving setups but best left alone.
However, note how the Grid has contained the action so far:
- Open.
- H1 Bull Mid-Channel (High)
Also, note how the H1 EQZ level at 12556.2 has interacted with price.
Yesterday price consolidated the move up to D1 Bull Channel, it remained below it after failing to break above it early in the session.
From there is was for the most part a range day and never went close to the areas of RESCON and SUPCON highlighted. There is a fair bit of RESCON to move higher in the way:
- D1 Bull Channel
- D1 EQZ at 12577.5
- H1 Bull Mid-Channel
- H1 Bear Mid-Channel
Below is the same Golden Zone highlighted yesterday where the SUPCON consists of:
- H1 EQZ Mid-line at 12492.2
- H1 Bear Channel (held price yesterday)
- D1 Bear Mid-Channel
- H1 Bull Channel
- H1 KeyZone
If price does move up strongly through the D1 Bull Channel there is an area of RESCON shown at the 12663.7 level.
Good job!
Interesting that you chose not to close the trade even though it virtually touched your take profit level!
I did move my stop to just above the M5 EQZ zone at 12527.0 after the spike down to Yes Low so a small profit was locked in. However, I loved the setup and felt the spike down was not the end of things and that the H1 Bear channel was the real target.
It worked out, cool 🙂