Today we are again Trading the open on the DAX 1 minute chart. In the early hours of trading the DAX often provides a couple of excellent trades within an identifiable framework. We discuss this framework in detail on our trading courses and using the price action from today you can get an incite into what we look for and how we trade.
Our preparation for trading the Dax is the same each morning. We identify a range that the market is in, which fits the longer term picture of the market and gives clues as to what we might expect during the morning trading.
Trading the DAX open using the 1 minute chart
Today we had a range that was formed between 7am and 8am premarket trading. Overnight the market had risen consistently until this range formed and so at the open we were looking to take trades long from the bottom of the range if we got the right price action (candlestick) patterns and confirmation from our trading indicators.
As you will see from the video the market set up perfectly for our first trade. The market began reversing from the bottom of the identified range. We took our first long trade from a breakout of candlestick pattern squeeze in the bottom third of the trading range.
The trade completed successfully at the top of the range after providing a second entry following a cup and handle price pattern at the DAX 13050 round number level.
We were then also able to take a trade short, back to the centre of the range from a Piercing Pattern within the candlesticks at the very top of the range.
If you are interested in learning to trade then you need a structured education. Trading is about finding Context, Content and Confluence within your charts and having the skills to execute good risk and reward trades. These are all skills that we provide to you on our trading courses. Join us today.