We caught a few solid trades on the DAX (ticker on our broker DAX40) this Friday, relatively easy trading with limited downside.
DAX finished the day 0.6% higher on Friday after taking a decent dive on Thursday, we we are fortunate enough to focus on short-term day trading which allowed us to profit on both the down-side in the early Friday session and the upside which begun after the DAX couldn't hold below the 14200 support level, that fake out made all the difference and allowed us to take easy trades towards the upside.
As you can see in the above image, a lot of buying occurred the first time we passed the 14200 level on the DAX, we then re-tested that level and went right up to 14580 really fast, hence knowing these important levels and then watching how price behaves at them will be vital to your success as a trader, whether you're an intraday trader or whatever else.
Regarding the overall performance, the day wrapped up with a 6.6k profit and solid statistics, like a 2.70 profit factor, the biggest winning trade was 2.400$ and the biggest loss just under 700$, see the stats below:
Now lets go over all the trades taken in two screenshots,
(light blue = winning trades / orange = losing trades)
The first trade executed was at 08:42 gmt, it was a sell trade and we grabbed 37 points, followed by another 64 points to the sell side again and finally the last sell trade at 11:09 gmt banked us about 32 points.
We then realized that the support could be holding and without much focus (due to a lot of personal challenges on my side) I tried going long, seeing a clear H&S building but I kept my SL's way to tight leading to a miss-out of of at least 150 points to the upside, 2x losses in a row and then a winner came popping out with 41 points.
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I then come back in the evening to trade again after taking a 2 hour break from the screens and started taking longs, while I did mess up the beginning a little (as you can see) by taking tiny profits and losses I managed to grab the breakout on the DAX with 2x trades yielding me another 140 points before the market closed, see below.
Before I let you go on to enjoy the rest of your Sunday, I want to remind you why this is a great example of how important it is to first LEARN how to trade before you actually begin trading, getting a feel of this market isn't something a course or a video will teach you... or even this blog post, but actual practice made this perfect.
Learning how to read the charts, like a key level in this example, teaches us that the move below the support level, 14200, did not signal a true breakdown because it was quickly killed off and a head and shoulders reversal pattern clearly formed in the first chart-shot. There was too much buying below the support level.
The short time period the DAX traded below the support level gave us a reason to pause the selling and wait for long signals... once the long signals came (H&S pattern) we got long.
Now remember this, because the DAX killed of that support level on Friday and went on to end the day in green territory that would provide a strong probability that we could trade much higher in the new trading week. - It is not a guanratee, but a high probability.
All in all, I expect another few strong days from the DAX after its exceptionally strong Friday, and I hope you've learnt something valuable in this short blog post! See you in the next one!