The third example is DAX 5m. Again, SMS worked once a trend was established, but suffered without it.
Again, identifying ranges, especially in proximity of obstacles (in this case it was a R2 level) helps avoiding entering in choppy situations. I draw the MA lines here too, to show how they were flat.
Notice how the market moved once it broke the range and cleared those levels. Notice also how, after the first break-out south, it pulled back and tested R2 and the bottom border of the previous range. Quite typical.
If you do some study on your charts, you will also see that today’s trade was a gap filling trade. It took almost all day, but the gap with Friday was filled, exactly at the level (long green line at the bottom.)
Have fun!
Again, identifying ranges, especially in proximity of obstacles (in this case it was a R2 level) helps avoiding entering in choppy situations. I draw the MA lines here too, to show how they were flat.
Notice how the market moved once it broke the range and cleared those levels. Notice also how, after the first break-out south, it pulled back and tested R2 and the bottom border of the previous range. Quite typical.
If you do some study on your charts, you will also see that today’s trade was a gap filling trade. It took almost all day, but the gap with Friday was filled, exactly at the level (long green line at the bottom.)
Have fun!