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Reactions from the Main zones in Q1 2024

In the first quarter of the 2024, market interacted with the Main zones of DAILY DOSE OF DAX 39 times. 17 times in January, and 11 times both in February and March. This blog shows ALL interactions, not only the cherry-picked ones.


What are the "Main zones"? Zones labeled as Main Support (alternatively, S1 and S2); then Main Resistance (alternatively R1 and R2), and Bull-Bear zones. They are "main zones", because the HIGH ODD trade-able reaction is EXPECTED there. The SIZE of the reaction as you will see here, went from 30 to 300+ points. Trend, range - i.e. trading environment, will dictate those reactions. STOP must go BEHIND the zone, and first high odd target would be next zone.


What is the PURPOSE of this, of showing this in the first place?

1) to show how S/R zones - IF properly made - can effectively be inflection points, where we can use limit orders to FADE the market, for a HIGH ODDS reactions

2) as REMINDER to Subscribers, of what the usual line from M. NOTES: "Reaction is expected on the first test of Main zones." actually means.


This illustration shows what USABLE vs. BROKEN zone means




Let's start with the January 2024, and Jan 2nd - a rough start, but then no Main zone was broken for entire month.


January 2024 ---> 17 interactions






February 2024 ---> 11 interactions





March 2024 ---> 11 interactions




Have that EXPECTANCY MINDSET, and remember: what is the WORSE THING that can happen on the Main zone? A -1R loss. This sample size is good enough, to know that Main zones WILL BE occasionally broken, BUT MOST OF THE TIME, they WILL produce tradeable reactions.


If we think of only +30 pts from them, and -30 on the losers, we are speaking about hundreds of points for each month, covered in this blog. And, there were several cases of market making LOD or HOD on those zones, and a FEW entry points could be taken as swings as well.



Cheers,

Relja a.k.a. StrayDog

1 Comment


Thanks a lot for this kindly reminder. :)

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