The 1h DAX chart is showing a downtrend therefore I was playing the short side today. Entered the first short at Bar1 on a bearish pin just below the bearish opening gap. Closed the short with 14.3 pts gain at Bar2. I missed a second chance which was a double top but entered another short at Bar3 when the index has bounced back again to the pivot point level. Closed the short with 15.0 pts profit at Bar4 when a bullish pin was forming then re-entered the short three bars later at Bar5 when the bearish momentum was picking up again taking out the low of the previous bullish pin. Closed the position on a bullish inside bar at Bar6 with a small 5.50 pts profit and sure enough the price started to consolidate. After this I missed two sharp selloffs. The first didn’t show a good entry bar and I didn’t chase the breakout. The second move was after a clear bearish signal with a bearish engulfing line just below the 1st pivot support (green horizontal line). I saw the DAX underperforming its European peers and thought it was oversold. Quite a mistake. I shouldn’t judge a signal if the setup is valid. Nonetheless I closed the day with three profitable trades.
DAX trading wrap-up
This entry was posted on Tuesday, May 17th, 2011 at 5:59 pm and tagged with DAX, priceaction and posted in trading note. You can follow any responses to this entry through the RSS 2.0 feed.
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