It looks from this chart like the Dax is not obeying levels but this is not actually the case.
In a ranging market – which is by definition looking for orders – price will vibrate around KLs and overshoot them by a few points. This gives plenty of opportunities to get a nice accurate entry.
TRADE PLAN: when the market is ranging, it really important not to jump into trades – because of the high probability of overshoots in these conditions, trades must be taken at exact levels and the market will give me plenty of opportunities to do so.
On the above the chart, price make three LLs at futures gap fill and CBOL before reversing, so in these conditions, it is important not to take the first push into a reversal zone.
