Hi Brixen,
I like your thread because I am also a fellow warrior fighting the DAX dragon.
I know a very successful DAX day trader, he calls it the "DaXhonden" puppy. If you know a bit German or Dutch, you know what does not mean. But for me, it is really the dragon. NO doubt about it.
In fact, I would like to kindly remind you that it is paramount to understand the context when trading DAX. Last year I was trading DAX based on harmonic patterns and order flow alone. I was making a good money for several months until the market state changed and my account drew down hard. It is by then i was taught the lesson that there is a significant piece of Jigsaw puzzle missing in my trading, which is the context.
You see the market maker controls the intraday swing (which we enjoy and make money from), but the fund managers controls the daily, weekly trend. When the fund managers are in play, the market maker are out of the way and this dragon just rips. By then, all the intraday patterns or indicators just fail without any remorse.
The quickest way to add the context info is through the market profile. When it opens below the prior day's value area, it tends to create a long liquidation break and when it opens above prior day's value, it is mildly bullish until the key value area levels are tested. The profile tells you the story where the fund manager would like to play their hands and the profile levels are usually traded to the tick.
See in the attached picture. On Monday, DAX was rejected from the Value area low of last Friday to the tick. Today it is opened and rejected at 12280 which is the POC of yesterday. The fund mangers are bring price to the 12000 because there is a high volume node there. It is indeed at 12200, we have seen responsive buyers step in and build a position there.
Just take a look at the market profile for DAX, you will be amazed by how precisely the DAX is manipulated to the fund managers' favor.
I like your thread because I am also a fellow warrior fighting the DAX dragon.
I know a very successful DAX day trader, he calls it the "DaXhonden" puppy. If you know a bit German or Dutch, you know what does not mean. But for me, it is really the dragon. NO doubt about it.
In fact, I would like to kindly remind you that it is paramount to understand the context when trading DAX. Last year I was trading DAX based on harmonic patterns and order flow alone. I was making a good money for several months until the market state changed and my account drew down hard. It is by then i was taught the lesson that there is a significant piece of Jigsaw puzzle missing in my trading, which is the context.
You see the market maker controls the intraday swing (which we enjoy and make money from), but the fund managers controls the daily, weekly trend. When the fund managers are in play, the market maker are out of the way and this dragon just rips. By then, all the intraday patterns or indicators just fail without any remorse.
The quickest way to add the context info is through the market profile. When it opens below the prior day's value area, it tends to create a long liquidation break and when it opens above prior day's value, it is mildly bullish until the key value area levels are tested. The profile tells you the story where the fund manager would like to play their hands and the profile levels are usually traded to the tick.
See in the attached picture. On Monday, DAX was rejected from the Value area low of last Friday to the tick. Today it is opened and rejected at 12280 which is the POC of yesterday. The fund mangers are bring price to the 12000 because there is a high volume node there. It is indeed at 12200, we have seen responsive buyers step in and build a position there.
Just take a look at the market profile for DAX, you will be amazed by how precisely the DAX is manipulated to the fund managers' favor.
Attached Image (click to enlarge)
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