A quick chart from the Dax tonight.

Notice the large wide range bar after an extended down move.

This is a sign of exhaustion with the last of the longs squeezed into covering.

This often forms the start of a base where the lows can be traded from.

Dax 17-8.jpg (112.38 kb)

What does a trader see and do that makes him successful on a consistent basis?

It comes down to trading an edge. Knowing when the odds are favoring a greater reward than the risk you are taking.

My edge is based on 2 main criteria.

Failed or successful tests of highs and lows. Trading off zones.

Confirming directional movement on expansion bars.

As long as my execution is good and my read on price movement is good, over a sample size I should be profitable.

Dax 11-8.jpg (124.92 kb) Click to enlarge

Dax 11-8b.png (43.20 kb)

Bit late with the writeup today because I've been trading the Dax.

I was at my son's football pie night and missed the morning drop from 5330 highs

Looked to trade the zone around 5260 but was very messy with my trades.

Was pretty much scratch until the trend move up where I made around $1100 US

Overtrading in the zone area is something for me to improve on.

Dax 30-7.jpg (119.27 kb)

Dax 30-7 2.jpg (142.44 kb)

The SPI trading today was a little delayed as there was 2-3 ft waves on a clear sunny day.

Surfing took priority with only me and the fish. In my books it was the perfect morning.

The SPI in the morning session for the third time traded off the 4105 and 4120 support resistance areas.

I scalped a few trades today with my successful trades off the retest fail at 11:45am and the 2:15pm trend move.

Those long term readers of my blog know how important this time frame is to me.

With the SPI trades and a BHP long with the 11:45 SPI long I finished up $2300 AUD after brokerage.

A reminder that Alexander's webinar is tomorrow morning.

For those that make it, I'll see you there.

SPI 30-7.jpg (158.23 kb)