Yesterday there were lots of very interesting uses of ACR line sets. I really enjoyed seeing how reading the bar-by-bar price action gave us the clues we need to identify important zones where the price would react. Here is the video from the webinar this morning and some of the examples we’ve picked out to highlight.
13-06-2018 Dax Session Review
We are using a clean 250 tick chart on the DAX30 (CFD pricing from FXCM). Then we lock the chart and scroll through it, bar-by-bar. We draw on the chart as if it were live. This is retrospective technical analysis, and hindsight is always 20:20, but it gives an insight into the thought processes and decisions required to use these tools on a live market.
Bar-By-Bar Read (13-06-2018) || Dax 30 Technical Analysis
Engulfing Candle
Within the first 15 minutes of the session starting, there was a clear sign of intent and a selling opportunity offering at least 3:1 reward.
Strong Bearish Wide Range Bar
Around 8:30 there was a large wide range bar with very little tail or wick. This is often seen as a sign of intent for the price to continue in that direction and is usually followed by further candles in that direction. But in this example, the price action came to an abrupt stop (albeit temporarily). So we marked out that zone for later use. This zone was subsequently ‘zoomed’ when price reversed from the daily low. Let’s call that ‘point x’.
Symmetrical Price Action: Pivot Component
Notice the price action around the low of the day? You have a strong bearish candle, followed by a doji, followed by a strong bullish candle. There is some symmetry here. Now if you were to buy here, it would be considered counter-trend, so you’d need 4:1 reward to make it worthwhile, as often, these moves fail to work out.
ACR Line Sets
There are a few very good examples of how you can use ACR line sets. This is true for the DAX30 and any other market. The video below will highlight a number of those examples. Pay attention to how the centre lines are speculative to start with. This is because we need to wait for ‘action’ to happen.
I really enjoyed watching the most recent ACR line set. Especially how price action gapped the centre line on the open this morning. Then it finds the low at the previously marked zone (point x from earlier). Reading price action can be very interesting.
