Wednesday, 3 October 2012

Context is King

The DAX opened within the previous distributions VA and then accepted value below the VAL. This was a short. But then look what happened. As I tell my mentoring students, context is king. What happens and what doesn't happen is key here.

The price made 3 stabs down into the zipper of the 10/02 08:00 distribution. It should have reached the bottom of the zipper and with a little follow through traveled down the zipper of the 10/01 distribution. But it rejected the lows 3 times. There's that number 3 again. The other key bit of information was that price had been accepted in the VA above so when price went back in, BUY, BUY, BUY.

1 comment:

  1. jenrique42

    my trades today
    - In euro

    - In the dax


    mis trades de hoy
    - en el euro

    - en el dax