DAX Journal 03/07/2017

22:15

After the rally from earlier in the session, the day has developed a double distribution and as a result, there is a low volume pocket.
Price eventually fell back towards VWAP in the second half, a strategy that I will start looking at in more detail in my trading journal entries going forward.
We were trading way above the deviation high and saw a double top, before retracing back towards VWAP
Is that an expanding triangle that failed after the 5th point?
High volume node to draw price back to?

Evening observations

17:15

The price has come down towards the black dashed line, but I think we have seen the move today. Tomorrow will likely be low volume, especially in the afternoon. So I will watch the opening range for a reaction to today’s volume profile. The balance point levels are still valid as well. Especially if we break higher.

16:10

The target 12487 mentioned in the daily article level did not quite get there on the futures, but a lot of retail brokers showed the levels we wanted. The balance point analysis (speculation) seemed to work out well and I heard from a few traders who took some trades and were pleased with the levels. The moved seemed to be ignited from a break above the value area high from Friday.

I am watching the black dashed line as a possible retracement, possibly even a short-term (scalp) from the 12,488 level towards that dashed line. Not quite getting the Reward:Risk required.

Earlier in the day

Does the gap open this morning suggest a potential balance point? I do not want to chase the idea for too long, but if it is, then I am watching a move to 12487 and it could work out to be a nice trade. I just need to plan the entry to get a decent reward to risk ratio. In fact there are a few nice areas to mark out on the charts with these balance areas. Here

Here are a couple on this chart: