Dax v Trader: Summary Match Report for Week 26 June 20 - 24 2022

As mentioned here is a summary match report of how the charts I posted prior to the open on my Daily Set Ups page or on Twitter each day for the last week performed in terms of trade levels noted and potential points.

This week I´ll just show how the Dax reacted to pre-determined levels from a price action day trading perspective.

More from our man at the Xetra Stadium in the weeks to come!

NB: Resulting points are indicative of the potential points available only and are not my performance. How you entered / exited and managed your trades is up to you. Full scores, fouls, passes. goals and own goals to follow in the weeks ahead :).

Monday 20th June 2022

Kick Off Chart Post Match Report

200 pts available from trades taken at pre set levels with little drawdown needed depending on SL.

Tuesday 21st June 2022

Kick Off Chart Post Match Report

Assuming 1st test short from pre set R was stopped at BE or a loser, 2nd short from R had a potential for 100 pts.

Weds 22nd June 2022

Kick Off Chart Post Match Report

Taking 1st test long just after the open from pre set S as a -30 loser (which if you were watching you could have been out at BE) there was still around 175 to 200 pts available from 3 remaining trades.

Thursday 23rd June 2022

Kick Off Chart Post Match Report

Assuming a loser from S at open there was still around 200 pts available from long at last Friday low (very high odds long) and Short at trend line.

Friday 24th June 2022

Kick Off Chart Post Match Report

Previous Cash Close (PCC) was the entry for the day. Some scalp opportunities along the way then simply to follow US indxs strong push to close out the week. Lets say again there was potential for another 200 (at least) pts on Dax.

I know the above is cursory and approximate but it is not intended to show accurate results (at this stage) merely to show you how trading from pre set levels and price action inflection points which can in most cases be set prior to the open is a good way to trade Dax intraday ( or any asset for that matter). Of course other traders have different opinions, methods and strategies as no one cap fits all, but I´m in the camp of make it as easy as possible and don't fight what you see!

For day traders and scalpers it is important not to be swayed by macro bias and / or what others are saying. Intraday price movement is driven more by micro rotations and short term price action. The context for the day is much more important. For example we may well be in a period of economic stress at the moment with rampant inflation and consequent rate hikes which conventional wisdom would have you thinking short positions on balance. However, if that's all that drives your trading you´ll miss good opportunities for longs intraday and inter-day. It´s important not to confuse the longer term perspective with short term opportunity. Bear market rallies, short covering and dead cat bounces are great for day traders!

Sure, you need to be able to set levels which is a learnable technique. And perhaps more importantly, you need to be able to read the action from what´s gone before, take into account news, see where the "traps" are, understand repetitive patterns and what's driving prices at any given time as it unfolds, but the overriding point is that price and the better odds trades set up at levels no matter what. They, in the majority of cases, don´t simply materialize out of nowhere. The key is to look for trades based on good locations and what's happening at these locations - long or short. Remember day trading in particular is a an exercise in mass psychology!

You can learn how I assess context and the likely intraday price action here.

I didn't make anywhere near the potential daily 200 points available ( I missed some, fucked up a few and I take partials which necessarily reduces my pts tally) but regardless of how you or I performed, it proves that well marked up charts prior to the open are invaluable for profitable trading. And.... you only need 1 a day!

I´ll leave you with this quote from Paul Tudor Jones which makes the point I´m trying to make pretty well :).

“I see the younger generation hampered by the need to understand and rationalize why something should go up or down. Usually, by the time that becomes self evident, the move is already over. When I got into the business, there was little information on fundamentals, and what little information one could get was largely imperfect. We learned to go with the chart. Why work when Mr Market can do it for you? These days, there are many more deep intellectuals in the business, and that, coupled with the explosion of information on the internet, creates the illusion that there is an explanation for everything and that the primary task is simply to find that explanation. As a result, technical analysis is at the bottom of the study list for many of the younger generation, particularly since the skill often requires them to close their eyes and trust price action. The pain of gain is just too overwhelming for all of us to bear!”

Paul Tudor Jones

All kick off charts will posted prior to the open next week.

Top Tip: Fear is what keeps you here; Courage takes you there - at the end of the day you have to take the trades yourself :).

At ease compadres :).

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