TheStrategyLab.com key charts and their stories for active traders of Eurex DAX Futures

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Posted: February 9th Friday @ 6:02pm est 2007

Key Market Day

Key Market Day does not imply that the particular trading instrument discussed below will continue in the direction of the pattern signal.

It implies that the pattern signal occurred on a trading day that had impact into the direction of the pattern signal via either a key economic report, key regular schedule market event, key geopolitical event, market seasonal tendency (cycle) or the price action of another key market.

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Trading gaps has big rewards if you approach it via a rule based methodology instead of trying to use intuition (gut feel) especially when it involves trading instruments with good volatility like the Eurex DAX futures.

However, many newbie traders in error think that gap trading involves trading the open or the first hour after the open when in fact a pattern signal to signal a possible gap fill can occur any time in the trading day.

This particular client had an earlier pattern signal about 5 hours earlier that produce profits. Yet, it did not fill the gap as he had hoped.

The DAX goes into a tight trading range on declining volatility to set up the pattern signal as a volatility spike you see in the below chart...a pattern signal that produced big profits, filled in the gap and retraced as it dropped many prior key s/r zones.

Trading Instrument: Eurex DAX Futures

Price Action Pattern source: Swing Trading Report (STR)

Click on chart to view actual size

If you have any questions about either the price action involving the pattern signal or the pattern signal itself...

You can send an email to questions@thestrategylab.com

Also, to view the archives of what we consider to be key market days along with the clues associated with the key price action...click here.

Disclaimer: The above chart in the key chart stories is for illustration only and they represent trades (real money or simulator) of those traders that have access to either our profitable free strategy, trading reports or trading manual.