FDAX: order flow on Eurex
Card 2: the rejection of the European range at the US open
The second setup is the handover's: the moment the American flow comes to test the range built by the European morning, tries to leave it, and is pulled back into it by a European participant defending his levels. It is the read specific to the DAX, the one the NQ does not allow, and it is the more profitable of the two cards when its conditions are met.
The mechanism
At 3:30 pm, the ES opens and the DAX follows by correlation. The American opening move pushes the FDAX out of its morning range, in the ES's direction. Two outcomes: the DAX accepts the breakout and changes regime, or a European participant, who built the range in the morning for reasons that have not changed at 3:30 pm, absorbs the correlation flow and brings price back into the range.
The rest of this lesson is for students
- Card 2 · Rejection of the European range, sell version
- What sets this card apart from an ordinary fade
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