Category Archives: trading note

DAX: 3 trades, 21 pts profit

I was still playing the short side in DAX today after the strong bearish close yesterday. Entered short at Bar1 on a break below a bearish pin bar rejecting the 1st pivot resistance. I covered the short at Bar2 on a bullish pin at the EMA20 with a 16.30 pts gain. I missed a good singal after two failed breakouts (up&down) from the morning’s range. The missed signal was a bearish engulfing bar following a bearish pin bar. The second short was at Bar3 on the retest of the pivot point level after a break lower. Exit was at Bar4 after a bullish pin violating the channel line from the morning high, result was 9.20 pts profit. Both exits were on good timing and were followed by sharp snapback rallies.
The third trade however was a long trade, a breakout- pullback entry after an upside breakout from the bearish channel that contained most of the day’s price action up to that point. But the exit was poor. I held the long after the low of a small bearish harami was violated as I was expecting a fake break to the downside trapping the bears. On the next bar I was trapped out as well just to see the index run to a new high. I was uncomfortable to trade against the 1h trend and jumped the trigger. The usual mistake with the excuse of a counter-trend position and a loss of 4.50 pts. All in all it was a good day with 21 pts profit and 2:1 win gain ratio.

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DAX trading wrap-up

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.


Change in my trading

I have to employ some changes in my trading. I’m still having problems finding the correct timeframes to match my trading strategy. Even though I have a better feeling with the current set (4h for trend, 1h price action, 15 tactical) I still often rush the entrys and/or the exits of my trades. This is obviously quite a bit of a problem. It deteriorates my trade performace by damaging both the wining/losing ratio and the gain/loss rate.
To improve my discipline (i.e. patience) I try to monitor the tactical charts as less as possible. However due to my daytime job as a trader I am looking at intraday charts all-day long and it is quite a challenge to hold back when receiving so much impulsive information.
Therefore I will focus on the DAX index to keep myself busy with intraday trading and to improve my timing and tactics. I will post my trades on a daily basis and evaluate my decisions. Unfortunately the trading platform that I use to trade the DAX cannot be connected to mt4pips.


Euro watchlist

EURUSD: Still in range, the partial retracement this morning indicates another attempt for an upside breakout.
EURGBP: Violated 0.8853 support but bounced back above it, uptrend may resume.
EURSEK
: Testing bullish channel support after a sharp pullback.
EURCHF: Bouncing back from 50% fibo level and 61.8% fibo fan line. The 30/100 EMA pairs signal a possible change in the trend.


EUR/USD: closed long

Price action suggests more sideways movement, tringle pattern.


EUR/USD: long entry

Despite the recent price action which seems to be rangebound I entered long in EURUSD. The price is testing the short-term bullish trendline with a breakout pullback on the 15m chart. On the 4h chart the price is below the Keltner Channel therefore I will close this long if the level of the 1.4059 short term swing lows get violated.


EUR/CHF: closed trade follow-up

Yesterday’s profit taking in EURCHF was another example of why intuitive trading is what a disciplined trader should steer away from. Negative Euro news flow with the pair trading just below 4h and 1d resistance level have prompted me to close the long position with a small profit. Nontheless the price moved higher and held its intraday uptrend. The exit has proved to be early levaing me with a net loss with the two trades combined.