DAX Secondary Level 4 April 2018
Obvious levels (think retest of a previous high) provide very easily accessible trade ideas that have a very tight stop – either the market reacts to the level and moves away quickly or stops you just beyond the level. Often when you are stopped out there is still a move away from the level, this is due to many traders taking the ‘easy trade’ and rushing for the exit on a small break but not creating any further momentum.
Traders taking a slightly longer time frame will have stops beyond another reference point, so on a retest of previous high a stop would be beyond a lower high or secondary level, this gives an area to buy in – for example a high at 3350 and a lower high at 3345 would give a range to buy within with stops below 3345 – understanding the likely intentions of each type of trade gives an edge in execution and an ability to not get caught out on short term price movements.
In this AXIA debrief we look at secondary levels on a longer term chart providing a technical set up as well as their application in perfecting execution on the price ladder to enter an inverse head and shoulders pattern.
Price ladder trend reversals are considered in Module 11 of the Axia Futures Price Ladder Trading Course where replays and drills can be used to hone your skills.
If you are looking to develop a career as a trader within a professional and successful environment, then the Axia Futures 8-week Intensive Trader Training is the most comprehensive in the industry based upon skill development within the proprietary futures trading environment.