As the larger degree trend was up yesterday, this TS4 buy on the 3min ES was a good one to take............ But the only questions came as opposing sells appeared as the ES rallied. This brings up a goods question on when and when not to take opposing trades. I use a check list. First, what is the larger degree trend ? and second, are you already in a good trade?
On the ES long, the TS4 was already in the direction of the larger degree trend so it made no sense to swap a strong trade that is already with the larger degree trend for potentially weaker trades that were against it. So in a case like this I say, stick with the original trade and go with the larger degree trend. The result, a nice +3R Profit (ignoring slippage and commission).....
But how was the YM sell below post (that was against the larger degree trend) different? Well, because we were flat (no trade) so a clean decision could be made on the entry. Then the trade was protected quicker (100% initial risk).
Thanks and I hope this helps show how a view on the larger degree trend can help you on your trade decisions,
Steve
On the ES long, the TS4 was already in the direction of the larger degree trend so it made no sense to swap a strong trade that is already with the larger degree trend for potentially weaker trades that were against it. So in a case like this I say, stick with the original trade and go with the larger degree trend. The result, a nice +3R Profit (ignoring slippage and commission).....
But how was the YM sell below post (that was against the larger degree trend) different? Well, because we were flat (no trade) so a clean decision could be made on the entry. Then the trade was protected quicker (100% initial risk).
Thanks and I hope this helps show how a view on the larger degree trend can help you on your trade decisions,
Steve
Posts
