London session market profile preps and journal for DAX

If you don't fancy the vicious stop run price action in DAX, then you can try your luck in CAC, which is much more mild and technical.
See it pulled back exactly to the session VWAP before shooting higher for another leg while DAX was doing a deep stop run below the double bottom formed this morning.

Watch your back!
The market maker has your stops in mind. Watch the 850 level might be in the cross hair of the algos in the case of deep stop run before going higher.

A bearish pattern waiting for the break.

Bulls just can't stand back above the VWAP. It is bearish.

In the dax typical style, first it runs the stop above the range top 85 and absorb those stop orders before letting the price drop to the down side.

50 achieved, 35 is the next.

Pretty much since the Italy non-sense, the Ny session is actually much more directional with a clear intention wanting to break the DAX down. Hence the cash session TPOs are quite useless these days. Instead I am relying on the ETH chart for setup.

From the 60 min ETH chart, we can see that yesterday's bull flag has failed 1 hour after the cash open, and the big bear rising wedge seems to be taking the rein. This wedge was drawn by someone on the twitter several days ago. But I was buying into the simplistic view that DAX would go straight down from the wedge break. DAX never went down before the shorts are squeezed.
We had a couple of extremely strong short squeeze days people might be confusing it with a bullish trend day.

Now the reality has kicked in that DAX is going down for real. But usually after a major low is taken out, a short squeeze ensues. This time is very likely to be the same. I am looking at the retest of the 12765 to 12770 zone for a short. If it were to squeeze higher, then let it top out first before taking shorts. We are in an extremely volatile period associated with transitioning from bull phase to bear phase that it is going to test true trading skills.

'Sell a level and hoping it melt from there' is never going to work in this market. Be flexible and don't buy the dips anymore.

At this moment DAX is trade at the 3 std dev of the weekly VWAP band.
It is clearly over sold. We are anticipating some snap back to the weekly value even get above the weekly value before initiating selling.

If you were wondering what the openning drive that was coming from.
That is from the Wolfe wave which is extremely effective in DAX, NQ, and Dow.
Once you know how to identify them, your trading would be miles different that what was.

interesting, so according to this pattern, next move would be a big upmove again...

gm BinChenUt,
looking at https://www.investopedia.com/article.../05/040405.asp

I see these Wolfe Waves have quite a number of conditions:

"
Here are some key points to remember for identifying Wolfe Waves:

1. Waves 3-4 must stay within the channel created by waves 1-2.
2. Waves 1-2 equal waves 3-4 (showing symmetry).
3. Wave 4 revisits the channel of points established by waves 1-2.
4. There should be regular timing intervals between waves.
5. Waves 3 and 5 are usually 127% or 162% (Fibonacci) extensions of the previous channel point.

The pattern can be found in:

1. Rising channels in an uptrend.
2. Falling channels in a downtrend.
3. Level channels during consolidation periods "

Did you get used with practice in spotting them first glance? while they are developing? or do you perhaps use or know of some NT tool that might help newbies in detecting them?
Thanks.

The Wolfe wave is a classical short squeeze pattern.
See where the market maker has targeted after breaking out of the wolfe wave?
The stops above the initiation point of the down move.

The rule sets are useful, but nothing replaces a good charting package and a lot of practice.
I suggest you use non time based the charts like renko, range bar, PnF chart to identify the three consecutive peaks or bottoms.
With time based charts, it is quite difficult.

Wolfe wave is not meant to provide the great turning point of the trend. It sometimes does, but it gives you the short squeeze spikes and profit with market makers on a frequent basis.
So you can see it as an advanced scalping tool.
I have captured two of these spikes today in DAX, and i am done for the day.

I have spent some time today to add bund into my trading panel.
See what it has done today.
It has bounced off from this week's POC nearly to the tick.
Watch the bounce yesterday at the low from the POC of two week's ago.
You see that the TPO is working out like magic not only in Dow, DAX, GBPUSD, but also in Bonds.

touch back up to the longer term MA, it looks like the dax is now ready for a bounce back down

Could be but usually the real directional bias can only been seen after the NY opens.

I am sitting on my hands and watching some option positions and setups.

DAX has just broken its one time framing. It is the the start of bear rotation.

Consolidation of 1 full hour making Dax on a relatively firm footing.
No more bearish bias for now.

Well the range is broken....