Notes on DAX trading

To trade the DAX intra-day I add daily pivot levels to my set of tool to identify support and resistance levels. I use the 1-hour chart for trend recognition with a 30/100 EMA pair and a 70-period auto-regression channel.
My strategy is based on price action with trendlines and pivot levels to pinpoint low risk entry points. Preferably I will take positions in the direction of the 1h trend unless a low-risk countertrend setup offers a reliable entry at overbought/oversold levels. Once a trade was entered I look for an opposite signal to exit but not reverse the open position.
The setup that I’m maily looking for is candlestick signal that fails or reverses at/near a price action line. The main signals are pin bars, inside bars (and haramis). For a high probability entry try to I separate the signal bar from the entry bar. The bar that tests the price action level is the signal bar and the following bar that takes out the extreme of the signal bar is used as the entry bar.
Whenever there is strong momentum against a valid setup or if the signal bar is a wide ranging bar moving away from the natural stop loss level I will wait for a second entry. The second entry can be a pullback or by Al Brooks … “a second entry means that you do not take the initial trade. Instead of buying the breakout of the high of the prior bar, wait to see if the bar after the breakout has a lower high. If it does, place an order to buy one tick above its high.”
At the end of the day I post and evaluate the trades I make and also the trades that I miss.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: