c09 JWBT016-Busby September 30, 2008 14:11 Printer: TBD
Dancing with the Dax 109The Early Riser
My favorite time to trade the Dax is between 5:00 and 7:00AM. I take this
trade often—almost every day. I get the Dax range during the first two
hours of trading. That is, I need to know the the high and the low from
1:00 to 3:00AM.At5:00AM, I look to determine whether prices are above
or below that range. If above the high of the range, I go long; if below, I go
short. Figure 9.1 depicts the Dax movement on April 25, 2008.
The range between 1:00 and 3:00AMextended from a low of 6894 to
a high of 6947.50. I wait for a break out of that range. On this date, that
breakout came before 5:00AM, but prices really shot up around 7:00AM.
At this particular time of day, many statistical indicators like the NYSE
issues and tick are not available. Therefore, for confirmation of my play, IFIGURE 9.1 A 30-minute chart of the Dax futures on April 25, 2008. I use the
price range between the open at 1:00AMcentral time and 3:00AM. I wait for a break
out of that range and trade in the direction of the break.