20210817 Trade Review DAX T1

18 Aug 20210817 Trade Review DAX T1

Play: Failed Auc­tion, Rever­sal at Val­ue Edge

#fin­twit #order­flow #day­trad­ing #trad­in­gre­view #price­ac­tion #chartre­view #DAX #DE30 #DE30Cash

Mar­ket Narrative

D1 sup­ply was formed and the open sen­ti­ment was below val­ue and with­in range. A con­tin­u­a­tion was pos­si­ble. The M15 side­ways I mis­took for a con­sol­i­da­tion with Bear Engulf fin­ish­er was mere­ly side­ways action. This cou­pled with the M30 long sell­ing wick for­ma­tion it was a very weak set­up and thus a bad trad­ing idea.

What hypo was it?

Return to val­ue, val­ue edge rever­sal or per­haps a Failed Auc­tion prob­ing value

How was the Entry?

Off a weak M15 Bear Engulf

How was the SL place­ment and sizing?

Stan­dard sizing

How was the prof­it target?

2R would have been eas­i­ly reached at IB low as is in line with a Failed Auc­tion. Although I would have tak­en 1.5R as there was LTF demand at IB low. 

How was the Exit?

When M15 closed as a Bull­ish Inside Bar instead I decid­ed to let the trade go on a bit longer as DAX can be slug­gish or seem­ing­ly inde­ci­sive before going short. When there was no bear­ish tran­si­tion on M30 and M15 closed as a Three Inside Up I closed the trade for ‑0.7R. 

What would a price action-based exit have done for the trade?

-1R

What would a time-based exit have done for the trade?

-1R

What did I do well?

I did well to wait for price action to con­firm me to cut the trade.

What could I have done better?

I could have bet­ter rec­og­nized the sit­u­a­tion as a side­ways move­ment instead of a con­sol­i­da­tion. Due to price trad­ing at val­ue edge and a fail­ure to close with­in as well was a close deep­er into IBR made me think of a bear­ish sen­ti­ment at the time. 

Obser­va­tions

Equi­ties and Frankie Fake­out can supercede the con­di­tions of a val­ue accep­tance. More about that in my next trade review post.

Missed Oppor­tu­ni­ty

Equi­ties and Frankie Fake­out play that I will review in the next post. 

TAGS: Below Val­ue, With­in Range, Mod­er­ate Imbal­ance, Val­ue Edge Reversal,

Pre­mar­ket prep on the day

20210817 Pre­mar­ket Prep DAX

Dai­ly Report Card on the day

How did I trade today? 20210817

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