Dax40 weekly review 01. 08. 2022 - 05. 08. 2022

** New Trading Guide Book**How to Trade the Dax40 (or any indx mkt). To get the best out of what I post here read this.

Dax40. 01 08 2022. (click on charts to expand)

Before After

Slow start to the new month with Dax drifting for a few hours after a positive open. We did get a 1st Test short opportunity at R which was good for around 80 pts depending on entry and management. If you weren´t in on the 1st test there was another chance to get short when price came under the zone and the bottom of the R zone held. We even had a 3rd opp to short it when it spiked at the US open. All in all a quiet day but still points to be had from good levels. More importantly these are repetitive type trades once you have a good understanding of S & R and how Dax typically moves.

Dax40. 02 08 2022. (click on charts to expand)

Before After

Levels doing what they do best this morning. Good 1st test long from the 350 zone for around 60 available points back up to the open price level and a bit of balancing for any of you scalpers out there to top and tail the tight range before another dip to the lower boundary of the S zone at 340 for another long opp. You´ll see I´ve added the RSI on the 5m for a bit of extra colour. Divergence is what we are looking for. Its not a reason to enter by itself but adds weight to zone trades and scalps. This and Fibs are all I normally have marked on my charts apart from S & R and the key ref levels; open price, yesterdays RTH highs and lows etc. Just gives a little more info and reasoning behind entries. All in we had around 140 available points to trade from pre set levels today without any scalps that were there for keen eyed traders willing to risk a few bucks to make a few more from evolving price action :). Same again tomorrow compadres.

Dax40. 03 08 2022. (click on charts to expand)

Before After

Initial wick down on the open just gave a 1 pt marginal lower low below the pre mkt low and never looked back. It was a scalpers entry but non the less a repetitive one and good for some decent upside as either a one off scalp or to leave a runner as there were a number of potential jump on board pullbacks if that´s how you traded it. Nothing to short on the pa until we got up to the 550 R zone where you could have taken a short. This would either have resulted in a loss or a BE trade. On the whole around 100 - 150 points available dependent on your entries and trade management style.

Dax40. 04 08 2022. (click on charts to expand)

Before After

Dax managed to push through the key R up at 660 to test the waters above for most of the day and came back down to close out the day. Fading this R zone was not an automatic trade as we had sat just under it all the premkt session with a tight range which often suggests it wants to test it to the other side - same if it had been S. We could have taken a long scalp at the open based on how pa had evolved pre mkt but the easiest entry today was the pullback to the 670 to jump on long. There were 4 reasons to trade that set up - it was pmh, it was just inside our R zone (retest R as S), it was the 50% halfback of the initial leg up and it was a M5 doji - great confluence to take the shot for some of the 120 points available. Apart from that it was thin pickings - some scalps but not much to hang your hat on.

Dax40. 05 08 2022. (click on charts to expand)

Before After

NFP day but we still got two standard long opps from S zones noted pre mkt open. The first was a dip just after the open to test S 640 which if you took it netted around 40 pts for a scalp. The second was after the data had been released from the lower S zone at 570 (better S here) for around 60 pts dependent on how you managed the trade. As it was NFP my plan is always to take scalps only as pa can be tricky and this was the case today. However we still had around 100 pts to play with from the levels noted before we kicked off the RTH session.

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