London session market profile preps and journal for DAX

Enter at 885 liquidity pool.
beautiful reaction.

The consolidation at 905 is an entry cheese. The Market maker has 890 and 885 in their mind already.

Two scalps targets hit. No more juice left. Flat

Wolfe wave entry in Cac missed by half point.

Cac attempting fill the hole in today's TPO. Watch 5128 for reaction.

Morning debriefing
The theme of this morning is the fear of trade war.
DAX has opened int the prior day's value, but was quickly sold down hard to 11935 area, where the bullish drive of yesterday being initiated. This is setting up the daily bias from neutral to bearish. When the news of Chinese retaliation hit the wire, DAX was sold hard together with all equities.
It has subsequently found support at last Wednesday's VAL of 837, which is also the last weekly's weekly value area low.
I have missed the leg down as I was in toilet, otherwise I would trade the 865 and 837 which are TPO levels.
The best trade of this morning is the naked POC/VPOC repsonsive trade in CAC which produced 3 fat targets for me.

What I have missed is the Wolfe wave short in CAC that the point 5 coincided with the session VWAP. A perfect sell setup. But I wasn't focused enough to see that one in time.
I would have to be more alerted for the Wolfe wave pattern. Note that this pattern usually appeared at the end of an impulse.

Morning prep for DAX and CAC

The theme of yesterday's was buying pullback. Surprisingly the sell-off of yesterday morning has not done any damage to European indices at all, except for DAX which overreacted to the news. But DAX always overreact to either upside or down side, the news are used by the market maker as a tool to do their shake out and take profits.

If we take a look at the EuStoxx50 which is the benchmark for European equities, it has held the last Wed.'s POC and still trade above the volume value area for the last two weeks. This is saying that the fund mangers are still holding firm on the equities and the bad news has provided another pullback buying opportunity.

The most bullish one is the French CAC, it is ready to challenge the naked POC and VPOC left two weeks ago at 5222.
This is the level that I would like to take some scalps and seek some responsive selling.
After that, there is a naked POC at 5255 is another great trade location to seek some responsive selling.

For the DAX, the theme of the day is to buy the pullbacks. The first area of support is the VAH of the merged two day profile at 12055. Then 12030 and 12003.
If it trades below 11913, I would reconsider my long bias.

Development points
There are three development points that i have concluded from my session review.
1. I should be more aware and alert to the correction pattern, especially the wedge correction pattern with contracting volatility, for a Wolfe wave type counter trend entry. There are plenty of Wolfe wave pattern in NQ and CAC.
2. Watch the break of ABC zigzag correction, or flag pattern, as an entry back to trend
3. Look more at the volume delta before putting down trades. The volume delta tells you the intention of the day time frame traders.

This is how a flag pattern break looks like.

A fallen wedge and wolfe pattern long in Dow.

Another cypher pattern short in DAX.
DAX has plenty of Cypher while Cac has a lot Wolfe.

Morning debriefing,
This is morning is characterized by lack of conviction and intention to move in either direction.
Check the tiny range we had this morning, it reminded me the summer range.
The initial balance was tight already, but just look at the lack of range expansion to that tiny range.
It is incredible.
Not a lot can be traded. This morning, neither dax nor cac tested any technical level i have outlined.
The only tradeable setups are a couple of cypher pattern fades. The cypher pattern forms when we have range bound non-directional price actions.

This one was invalidated after 30 mins of no touch of the entry.

Another Wolfe wave pattern short in CAc.

Nice entry.

Which broker are you using for CAC40 trades, please ? I'm with NinjaTrader's own brokerage (they bought Mirus Futures a few years back), but they don't seem to offer Euronext Exchange products - I will ask them if they are coming, as several people have recommended CAC40. I do have the CFD via FXCM.

I am using interactive broker.

Morning prep for DAX

Another trade war rhetoric from Trump white house, and the market has reacted. But the market are starting to have the trade war fatigue that the sellers are getting less and less, the selling force is getting weaker and weaker. Don't get me wrong that the investors are still nervous, but we are running out of the panic seller and speculators willing to sell into this market at this moment.

Just take notice of the massive ending diagonal in NQ from which the market has just broken out of. It is a sign that the sellers are trapped and a new wave to the upside is initiated. We are in the beginning phase of that up swing, so long as the rhetoric don't turn into an all out trade war.

If we take a look back at the DAX. The three down profiles have formed a perfect flag pattern and the break to the upside was violent to say the least. It has left a poorly traded profile and some repair work is needed. I am looking at two TPO hole in the chart that could provide me some setups. As we speak, we are just trading out of the first TPO hole. It is likely that we are going to see the second TPO hole to be filled later today.

This morning we are most likely to have a tight range day as the market is waiting for the NFP this afternoon. So I would expect to do some mean reversion trades by using harmonic patterns.

A Wolfe wave entry on the long side.
Let's see how it pans out.

Both 61.8 and 78.6 fib of the whole tight morning range are traded by the market. Remember this and trade this when you have tight and well defined ranges.

Morning debriefing

Today's London session was once again of a tight range bound type -- the initial balance is tight and there is not much of a range expansion.
Clearly the London is awaiting the lead from New York. Today's daily profile remind me a lot of the days of last year -- lack of conviction in London and drive in New York.

Set complains aside, the key question is how to trade this market. Tight range bound market can still be traded if you are able to identify the day type early in the session.
The clue are two folds, firstly it has open in the prior day's value within the first TPO hole (gap filling action means it is most probably a non-trending day), secondly the rejection to go below the low set before the open.

For a range bound market, the 61.8 and 78.6 fib of the whole range are usually faded by the market. Hence we could also grab a couple of scalps from those fib levels. Note that we are not seeking a home run trade from those fib replacements. 5 to 10 points scale off is recommended. You can put down a limit order at those fib levels and let the market to hit those orders. IF you would like to trade after you see some confirmation, then it would already be too late as the trade is already be already after 10 points rotation.