This is such a common situation on the Dax; it doesn’t just trend and pullback, it keeps o going and often moves a 1000pts with hardly a pause, So I often see open above KLs in an established up trend and I find these hard to trade because I get a crazy idea into my haed that it’s ‘gone far enough…” or is ‘ready for a reversal now..’ – this doesn’t get me anywhere and I end selling when I should be buying.
So given this tendency, what is the correct way to approach this kind of open?
One of the best trade to take in this case is a pullback using the Rule of 3, and the qualifiers for this setup – which is only valid for a break out entry – are:
- 169
- intraday 50% fib
- pin bar formation
