Setup

Planning sell the rally setup with DT as a confirmation but as it is not a reversal pattern, it is not counted to the DT short pattern. Short in ydays VAL zone between 11915-11915 after stop run to the upside to 2nd AOI between 11936-11950. Waiting for some follow through now or a stop out.

Trade Execution/Timing

Short after spike through previous swing highs at 11926 on above average volume. Delta on 30 minute is still bearish, which confirms the short bias I had since cash open. Buyers were not able to push towards yesterdays VPOC which makes it look like there are big sellers between the two AOIs.

Order Flow Read

Looked for large sell orders after break of 11926 but selling pressure is hard to spot in the DAX. Saw 10-20 lots hitting the bid which meant big buyers were trapped with size. After the initial spike, sellers offered immediately back down and started holding an offer at 11927. Still short after nearly getting spiked out, waiting for some followthrough and break of 11916 to confirm this trade idea. First target is at daily lows.

Trade Sizing

Using three lot, as morning sessions has already progressed nearly 60%, making this more riskier than trades straight out of the cash open. Potential for big downside in this setup though based on the 30 minute and weekly value areas there is room for a 100 tick sell off.

Trade Management/Exits

Outstanding
Took first lot off after strong 3 minute move to the downside on volume but immediately followed by buying on volume, which is usually a good point for a reversal or a short term leg higher. To avoid reversals, trailed stop accordingly to the lower high at 11918 still waiting for some selling pressure on volume to confirm the bigger picture targets.

Squeezed out of rest of position after break of swing low 11901 after rejection of lows. Semi aggressive buying along with selling action in FGBL indicating potential reversal here.

Lessons learned

• Be more aggressive with outs especially after a failure of the lows followed by an immediate bid to the upside. Could have squeezed 30 ticks more out of the trade.