DAX trading on March 21, 2025, offered some fantastic opportunities for both beginner and experienced traders alike. In today’s breakdown, we’ll analyze the trades taken, the reasoning behind them, and the key strategies that made them successful. Whether you’re new to trading or a seasoned expert, this blog will help you understand how to spot profitable trades and manage them effectively.
Morning Setup and Market Open
The DAX market opened at 8:00 AM, and just minutes after, we spotted our first trading opportunity. The strategy used here is known as the Explosive Standard Trade. This method involves waiting for a buy signal, where the arrow appears on the outside of the channel and the price closes in the buy zone. Additionally, the tram lines, marked in green, confirm the bullish sentiment.
At 8:06 AM, we entered a buy trade as the price moved into the buy zone, giving us an ideal entry point. For phase one traders—those who are relatively new and focused on capturing quick profits—the goal was to secure around 10 to 25 pips. Within just a few minutes, the market moved in our favor, hitting the target and securing a smooth and profitable trade.
Switching to Short - Capitalising on Market Reversals
Shortly after our successful long trade, the market began to reverse, signaling a potential short opportunity. The strategy remained consistent: wait for confirmation that the price moved into the sell zone with tram lines turning red and an arrow pointing downward from outside the channel.
We executed a short trade at 9:06 AM, following the same rules-based approach. The trade immediately moved into profit, with the market dropping significantly within a few minutes. This highlights the importance of maintaining discipline and following your trading plan, regardless of market conditions.
Phase Two - Advanced Trade Management
For more experienced traders (Phase Two), the focus shifts from quick targets to maximizing profits through trailing stops. The goal here is to lock in gains while allowing the trade to run as long as the market continues to move favorably. In this instance, we managed to trail the stop down as the price fell, securing profit without risking too much of the upside potential.
Despite eventually getting stopped out at 9:24 AM, the trade was highly profitable. The key takeaway is to protect your gains while giving the trade room to develop. This technique not only safeguards profits but also helps maintain a disciplined mindset.
Key Takeaways
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Stay disciplined: Follow your entry and exit criteria consistently.
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Adapt your strategy: Use Phase One for quick profits and Phase Two to maximize gains.
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Protect your trades: Trailing your stop is crucial for locking in profits while allowing room for growth.
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Embrace flexibility: Markets are unpredictable; give trades the space to develop.
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