Just a quick DAX trade this morning – just a nice simple set-up using the Domino Candle set-up from the Wallachie Fan method of trading.
After the torrid start to the year that the Indices have seen we’ve actually had bullish Daily closes the last two days. We then had some good news out of China over night. The DAX is very susceptible to Chinese news (in my humble opinion that is) so we saw a gap-up on open this morning. Perhaps on that positive news, perhaps on the bullish US close, perhaps because its a Wednesday, perhaps for a million and one other reasons that will only come out in hindsight.
Anyway Dax gaps up, then re-traces gently and fills the gap nicely. The gap-fill is ended by a Bullish Engulfing Candle, which is also a Domino Candle. The trade is on. Long at 100092 with a stop at 10072 (in line with Consistent Targeting) and due to the size of the candle a 261 target chosen (once again in line with Consistent targeting). I’m also going to Brasso Trade this position if the opportunity arises.
Trade triggers (I’m entering at market due to bullish close) then retraces. Looking at the price action this provides a chance to add to my position. There is a wobble at 8am when London opens and the DAX flashes back past my entry and I think the game is up. However within 3 minutes the bullish tone is back and we carry on to hit the target at 10140.
In fact the market was moving so quick that by the time I printed off a chart for this blog price had already retraced back to my entry level (and another reason why I like Consistent Targeting in my trades!)
A very quick start to the day. That was a picture perfect start to the day in the DAX. I wish it was always like that but the honest truth is that has been rare recently (well for me at any rate.)
Trade figures for the two trades that made up the position: Total risked:39points /0.75%/2R. Total Gained: +97points/+1.8%/+5R
Finally it’s my Dad’s birthday today so I’ll be off doing other things for the rest of the day. He’s had an immensely tough last 12 months (and at many points we thought he’d not see his birthday) so happy birthday to my dad. I also managed to get him and his old jet dedicated on the Lightning Of The Day Twitter feed which pleased him enormously.