target update for 1st leg: 7665 and 7615 This is only intraday targets. If there's a reversal then...
Yes, I didn't meant to say total reversal, downside would have been a better term, though anything is possible.
I have been scalping DAX for almost two weeks and I like it. I am used to fading the CL and ER2 for a few ticks which does not quite work in DAX because the potential losses are bigger, so I try to trade more in the direction of the flow and I am holding onto gains a bit longer. The 16 second bar charts work perfectly -with the one min and 60 min for perspective- all formations are clear and the volume and OBV patterns are usually clear. I am located in NY and start between 2AM and 4AM local time. I don't mind missing the half hour after the opening because it is often looking for direction . Today I got up at 4, missing some nice moves. Near the highs twice I shorted the top, early, took it back for .50+ and 1.5+, did not dare to stay, the third time I got it right and made 7 pts. Made a couple of wash like trades and I am going to leave it alone. One of the wash sales started by hitting the wrong button and bought to early but I was lucky to get out even. This is a warning that I am a bit off and I stop trading DAX for the day. I missed two other nice tops by .5 and 1 but it's OK, at least I was facing in the right direction. Basically this is a good morning for me. I can always add to gains in CL or ER2 trading for 2 or 3 ticks. It is good to have a morning lead and trade defensively afterwards. DAX is a scalper's dream and one should concentrate on this (although currencies are also active) early AM and nothing else. Fewer crosscurrents are an advantage . The beauty of this contract is that it is muy largo and liquid, even a few fluctuations can provide big enough swings for nice trades. Trading the other contracts like ES is like watching paint dry. Also notice that DAX does not follow ES in lockstep sometimes it is weaker and sometimes it is stronger. So one should not look at an ES chart for hope only to see the flow and the volume patterns. There is one divergence that can help sometimes when the DAX overswings against the trend and the ES does not. This sets up for a decent snapback trade. At the moment I trade one lot which is new for me because in CL and ER2 I scale at appropriate times. I have actually reduced my account for the time being so that IB won't let me take 2 or more lots , but it looks like one can make an executive level of pay trading only a few lots. Regards, GC
added 1 lot long both sold b/e long 3 bottom fishing crap -12 existing home sales came in at 6 times worse Short 3 scaled out 2 +11.5