DAX • THOUGHT PROCESS
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DISCLAIMER
All TRADING/INVE STING involves high risk and YOU can LOSE a substantial amount of money, no matter what method you use. All trading/investing
involves high risk; past performance is not necessarily indicative of future results . This course is for educa tional use only – Not to be u tilized as
trading/investing advice.
Commission Rule 4.41( b)(1)(I) hypothetical or simulated performance results have cer tain inherent limitations. Unlike an actual performance record,
simulated results do not represent actual trading/investing. Also, since the trades have not actu ally been execu ted, the results may have under- or over-
compensated for the impact, if any, of certain market factors, such as lack of liquidity . Simula ted trading/investing programs in general are also subject to
the fact tha t they are designed with the benefit of hindsight. No representa tion is being ma de tha t any account will or is likely to a chieve profits or losses
similar to those shown.
ONE OF THE LIMITATIONS OF HYPOTHETICAL PE RFORMANCE RESULTS IS THAT T HEY ARE GENE RALLY PRE PARED W ITH T HE BE NEFIT OF HINDSIGHT . I N
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ADHERE TO A PARTICULAR TRADING/INVESTING P ROGRAM IN SPITE OF TRADING/INVE STING LOSSES ARE M ATERIAL P OINTS WHICH CAN ALSO ADVE RSELY
AFFECT ACTUAL TRADING/INVE STING RESULTS. T HE RE ARE NUMEROUS OT HER FACTORS RELAT ED TO MARKETS IN GE NERAL OR TO T HE IMPLEME NTATION
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IMPLICATION IS BEING MADE THAT ANYONE UTILIZING ANY OF T HE INFORMATION IN T HIS COURSE HAS OR CAN OBTAIN SUC H PROFITS AND RESULTS.
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presented herein has been obtained or derived from sources believed to be a ccurate, bu t we do not guarantee its a ccuracy . There have been no promises,
guarantees or warranties suggesting th at any trading/investing will result in a profit or will not result in a loss. The student is responsible for his own
actions regarding any trading/investing. All historical performance trading/investing system results are not achievable in real trading/investing because
slippage and psy chological factors can not be accur ately a ccounted for. Any opinions, news, research, analyses, prices, or other information contained in
this course are provided as general market commentary, and do not constitute a trading/investment advice. None of the content published in this
document constitutes a recommendation tha t any particular asset, portfolio of assets, transaction or investment stra tegy is sui table for any specific
person. None of the information providers or their affiliates will advise you personally concerning the nature, potential, v alue or sui tability of any
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incurred as a result of using any of our trading/investing stra tegies or concepts . Loss-limiting stra tegies su ch as stop loss orders may not be effective
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implied or possible where projections of future conditions are attempted.
All trading/investing involves high risk; past performance is not necessarily indicative of future results.
THE INFORMATION AND ANY SCORES IN THIS DOCUMENT OR ITS ADDITIONAL RESOURCES WILL NOT BE CONSIDERE D AS FINANCIAL ADVICE AND SHOULD
NOT BE USE D AS A BASIS FOR TRADING/INVESTME NT . * T HE INFORMATION IN T HIS DOCUME NT OR ITS ADDITIONAL RE SOURCES ARE PERSO NAL OPINIONS
AND E VALUATIONS AND SHOULD NOT BE CONSIDE RE D T RADING/INVE STMENT ADVICE. * T HIS DOES NOT RE PRE SE NT AN OFFER OR SOLICITATION TO BUY,
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AND SEE K FOR P ROFESSIONAL ADVICE. * TRADING INVOLVE S A HIGH DE GREE OF RISK AND SHOULD BE CONSIDERED O NLY BY P ERSONS WHO CAN
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OTHER ANALYSIS BUT YOUR OWN. * NE VER TRADE/INVE ST MORE MONEY T HAN YOU CAN AFFORD TO LOSE . * THE INFORMATION IN T HIS DOCUME NT OR
ITS ADDITIONAL RESOURCES IS NOT EXHAUSTIVE AND ERRORS MAY BE CONTAINED WITHIN THE CONTENT OF THE DOCUMENT.
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IMPORTANT! DO NOT SKIP
Let’s get a few things straight.
• In this document, you are going to find, in a nutshell, the overall though process I use every day
• Make sure you download and carefully read the main document. Take notes. Read it again
• If you do not understand and fully trust the key-levels, you won’t be able to use them properly
• This process should be used alongside the higher TF trend, also discussed in the main document
• The thought process I describe is meant to complement the overall market context analysis
• In a bullish context, I want the price to go below a Key Reference Level into a Reaction Level
• In a bearish context, I want the price to go above a Key Reference Level into a Reaction Level
• At times, I take continuation trades if I miss the initial reaction. I don’t FOMO or chase moves
• Continuation trades are taken after a successful LTF reclaim & retest of a Key Reaction Level
• With all this in mind, the full responsibility of analysis and risk management is still yours
• Without further ado, I will summarize the thought process in the following diagrams
• Key Reference Levels: Current day’s OA-R© & IDA-R©
• Key Reaction Levels may be: Previous OA-R©s, IDA-R©s, SPs, SCs
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Bullish Market Context – Daily Thought Process with LTF reaction from Key Reaction Level
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Bearish Market Context – Daily Thought Process with LTF reaction from Key Reaction Level
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Bullish Market Context – Daily Thought Process, Continuation Trade after reclaiming Key Reaction Level
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Bearish Market Context – Daily Thought Process, Continuation Trade after reclaiming Key Reaction Level
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THANK YOU
TraderFDAX
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