TS3 Buy on the 3min ES

OK, Now we have established that we should be looking for buy setups on the shorter term 3 and 5minn Charts, what unfolded on Friday ?

Well, we did get a TS3 buy in the afternoon, please see chart. But, the market only rallied slightly. I hope you have all read the Trading Course ? Because if you have, the you will all know that the most likely place a trade can fail (if it is going to fail) is at the DP from the prior Wave b swing. And that is exactly what happened here.

You all have to remember, that we are still in the harder part of the cycle. You should all know about the “Cyclical Nature of Trading” by now, so we should not anticipate big trades at the moment these will come back soon...

Thanks, Steve

First, the Larger Degree trend

Hi Everybody....

As usual, let’s start by looking at the “larger degree” trend on the 15min ES Chart. This will then set our “position direction” for the actual trades on the shorter-term 3 and 5min Charts.

As you can see, the 15min ES made a low right at DP support on Friday, this then set the trend to up.......

Thanks, Steve

Happy Thanksgiving

Happy Thanksgiving for Thursday 26th

I just want to wish a very happy Thanksgiving to all our USA customers and friends of MTPredictor from myself and all the team here at MTPredictor.

I hope you all have a good day off with friends and family..................

Steve and all the team at MTPredictor

High Volume (VSA) trade on the Russell

Hi Everybody,

Here is a nice example of the High Volume (VSA) trade setup that I know some of the more Advanced Traders among you follow.

I particularly liked this one as it was a clear “snap back” at the DP support on a high volume (VSA) spike. The 5min chart was also showing a ABC low at this same point, which added weight to the “pattern” at this low.

As you can see, MTPredictor is so much more than simply a collection of “automatic setups” that can take the more Advanced Trader to higher levels in their trading......

Thanks, Steve

Advanced Traders - DP sell nails high of Day

The Advanced Traders among you could have used the DP to nail the high of the day yesterday. The short of this high made approx +1.5R Profit (ignoring slippage and commission).

Yes, this was only a small profit, but it would have made up for the -1R loss earlier and put you into Profit for the day overall, which is always good news

Thanks

Steve

Cyclical Nature of Trading....

Hi Everybody,

After a nice run if good and profitable trades, it should have been no surprise that we have now enter the difficult part of the trading cycle, As you should all know by now, this is just the “Natural Cyclical Nature of Trading”.

The larger degree trend was not that clear on the 15min ES yesterday, although a down basis as favoured. The 3min ES had a number of sells, the first would have at least been break-even. The second, later in the day, would have been a -1R loss. Yes loss can and do occur when trading. Any vendor who does not mention Loss is not a real trader !

So, Yes, yesterday was a hard day, these do happen when trading. At MTPredictor we look at the “Good, the Bad, and the Ugly” of trading, i.e. the way it unfolds in the “real world”. Very few vendors do this.....

Thanks

Steve

Russell Index – TS4 sell

The 3min Russell Index also got in on the short trades yesterday with a nice TS4 sell earlier in the day

Advanced Traders would have used the High Volume (VSA) Spike to new lows to protect a nice +3.6R Profit (ignoring commission and slippage)

So, overall, this was a good start to the week :-)

Thanks, Steve

3min TS3 sell.........

We did have to wait a while, but sure enough, late in the day we got a nice TS3 sell on the 3min ES chart.

The ES then declined into the first projected target, where the Standard Traders would have look to bank a nice +2.5R Profit (ignoring slippage and commission)

But do you all see how we set the larger degree trend first, then moved to the lower time frame for the individual trade entry...

Thanks, Steve

Larger degree trend....

Hi Everybody,

As usual, we start with the “larger degree” trend.... As you can see, the 15min ES rally to the DP, where the rally was stopped in its tracks, and a decline started. As such, this set the larger degree trend to down........

So let’s now move to the 3min charts to see if any sell setups unfolded....

Thanks

Steve

NinjaTrader RT data into MTPredictor v6.5

And YES, we are doing the same with NinjaTrader, where NinjaTrader users can use their Ninja RT data as a RT data source in the full MTPredictor v6.5.

Again we hope to start Beta testing of this later this week....

This is brilliant news for all you NinjaTrader users out there :-)

Thanks, Steve

TS8 RT data into MTPredictor v6.5

As you have seen in my posts today, it is a real advantage to be able to use the Full MTPredictor v6.5 over just the RT add-ons (that is why the RT add-ons are much cheaper than the full v6.5 version), so wouldn’t it be nice to be able to use your TS8 data in the full MTPredictor v6.5.....

Well, we have been working very hard on this over the last month or so, and we are now at the stage where we are starting some “in house” testing. If this goes well, then we should start full Beta testing later this week.

This is brilliant news for all you TradeStation users out there :-)

Thanks, Steve

Now for the Advanced Traders

What amazed me on Friday was how the rally off the DP low unfolded in such a perfect Elliott Wave pattern. Notice how we had an ABC correction, which was then followed by a 5-wave rally into the high. The Elliott Wave module in MTPredictor v6.5 automatically identified both of these patterns for you.

This allowed the Advanced Trader to come out nearer the high for a nice +3.3R Profit (ignoring slippage and commission)

Thanks, Steve

DP buy nails the low of the day !

As you can see from the chart, we got a DP buy, that nailed the low of the day for us ! so this was a good one to consider as it was also at 15min DP support (last post).

Notice how this long was not stopped out, so there was only one trade here, even though we had a history triangle (remember, these are “filled” and not “failed” trades) and a full DP Label.

The ES rallied for the rest of the day to reach the DP target, where the STF exceeded its strength band, so the Standard Traders swap to the ATRStop. The end result was a very nice +2.5R Profit (ignoring slippage and commission).

Thanks, Steve

Start with the larger degree trend

Hi Everybody,

As usual we start with the larger degree tend, and on the 15min ES on Friday the DP started to give su[port at the low of the day. This set the larger degree trend to be UP, so on the shorter term (3 and 5min) charts we should have been looking for buy setups

So let’s move to the 3min ES and see what unfolded.......

Thanks, Steve

Massive +22R Profit on the 3min DAX

Hi Everybody,

What a day for the European Traders among you............

As you can see, the 3min DAX gave us a DP sell that nailed the high of the day for you ! But that is not the amazing bit, the Dax then collapsed from there. The STF was string so Standard Traders swapped to the ATRStop. This held you short as the fall continued........

The only thing I would say, is once you get wide range bars down (on high volume) “and” you are sitting on such a massive Profit (+22R) then the sensible course of action is to look to lock this in. As you can see, this was then stopped our for a massive +22R Profit (ignoring slippage and commission) !!

Yes such massive trades like this do occur, and yes MTPredictor does catch them........... the question is, did you :-)

Steve

Set the larger degree trend

Hi Everybody,

OK, let’s start with the larger degree trend on the 15min ES yesterday. As you can see, the 15min ES made a low right at WPT support. This was a similar situation to a few days ago, where we had reached a Wave 3 target, so while I do not suggest trading “against” a Wave 3 on that time frame, on the “shorter time frame” a counter trend swing usually unfolds, and that is what we look to catch on the shorter, 3 and 5min Charts.

OK, so now we have established that the 15min trade was up off this WPT support zone, let move down to the 3min ES Chart

Thanks

Steve

VSA buy on the Russell

But for me, the best (and most obvious) trade yesterday was the VSA (high volume spike) Buy at the low of the day at DP support on the 3min Russell Index. As you can see, this fell in line nicely with a potential 15min Wave C low. This nailed the low of the day for you !

The Russell then rallied for the rest of the day for a nice +3.2R Profit (ignoring slippage and commission).

What I also liked, was because you were already in this nice long trade (with confidence), you could have ignored the potential sells later in the day on the 3min NQ

Steve

TS3 sell on the 3min NQ

This was the trade that was tricky yesterday, because it was such a good looking ABC pattern, “but” the larger degree trend looked to be up. So as I always say in circumstances like this, if you are unsure, then pass on the trade, but if you are experienced and like the pattern, then go for it, but protect yourself quicker using the 100% initial risk guideline.

This worked out OK with a potential +3.9R Profit (ignoring slippage and commission) available as the NQ reached the first projected profit target.

But I agree, not an easy choice on this one....

Steve

15min NQ

Hi Everybody,

Yesterday was not as easy “at the time” as it may seem “in hindsight”. I know this as I was pondering the larger degree trend as the market was unfolding yesterday.

Initially I suspected that the 15min NQ had put in a potential Wave C low, which meant the larger degree trend was up. But the 3min then gave a lovely 3min TS3 sell (next post) so we had a dilemma.

Later in the day, things became easier as the NQ (and TF) made another attempt at a Wave C low, that is why the 3min TF long on the VSA setup (post later) was the easier trade yesterday.

So overall, tricky in the morning, but easier later in the day.....

Steve

One for the European Traders...

Hi Everybody,

A nice TS4 buy (using IQFeed data) this morning on the 3min FTSE. Notice how the DP target nailed the high perfectly. Standard Traders among you would have swapped to the ATRStop as the STF strength band was exceeded. This gave a nice +3.3R Profit (ignoring slippage and commission).

Notice how the loss earlier was kept small. -1R is a lot less than the +3.3R made on the Profit, small losses and large Profits, that is the key to successful trading.......

Thanks, Steve

3min YM

OK, let’s now look at the 3min Chart.

The first trade of the day was not filled because the YM rallied and exceeded the high “before” taking out the buy order, so no trade. Then there was a legitimate buy that resulted in a -1R loss. Yes losses can and do happen, but as we all know by now, the trick is keeping them small, which is what we did here.

Then the question comes as a DP sell arrived later in the day. Yes this was in line with the 15min DP so was a valid one to take. But the difficulty came as a TS4 buy appeared a little later. Should you ignore, or stop and reverse or what ?

This was a difficult decision, because, yes, the 15min was at DP resistance, but that was only minor. So the best course of action would have been for the standard traders among you to just protect the profit as the TS4 buy came in. But the more advanced traders among you could have stopped and reversed for another +2R on the way back up again.

But before you all email in, this was not an easy call as the DP high was only minor resistance on the 15min chart.....And that is all that unfolded – a minor decline from that high.

Thanks, Steve

15min YM

Hi Everybody,

OK, as usual, let’s set the “larger degree trend” using the 15min Chart, today on the YM.

As you can see, we had a TS3 buy early in the day, so this set the larger degree trend to up. But the question comes later in the day when the YM reaches the DP (from the minor wave b high). As I teach in the Trading Course, a “minor” high can be made there, but it is usually only a minor high. So this does raise a question on the 3min chart that we will see in the next post....

Thanks, Steve

3min DP sell nails high of day !

Hi Everybody,

Yesterday was an interesting day, with the markets working their way high for most of the day, until a DP sell arrive on the 3min YM at 14:45 EST. As you all know, I am always cautious about DP setup, as they must be in tune with the larger degree trend, i.e. at “larger degree” support or resistance. As you have see from the last post, the 15min YM was right at the Typical Wave 3 WPT, so a decline was likely, as such this 3min DP sell was a good one to consider.

As you can see, this nailed the very high of the day for you !!

The YM then declined nicely. As the STF strength band was exceeded the ATRStop was used for trade management (standard trade management guidelines). The result was a nice +3.8R Profit (ignoring slippage and commission).

A nice start to the week :-)

Steve

Larger degree trend on 15min YM

Hi Everybody,

As always, let’s start with the larger degree trend. Nothing much was happening on the 15min Charts, until the 15min YM reached the Typical Wave 3 WPT. Normally I don’t like taking tares off the Wave 3 WPT as these are “counter trend”, but on the “shorter term charts, a move was likely from this level. As such we can now move down to the 3min Chart to see if any setups were unfolding at this time.....

I have also include some other support / resistance zones on this 15min Chart, and as you can see, these have done a brilliant job, nailing the last few highs and lows absolutely perfectly. I still find it amazing how well this stuff works sometimes !

Thanks

Steve

Larger Degree Trend – Video

Hi Everybody,

I know a lot of you can find the transition from “standard trader”, (where you follow the STF colour and just look at the automatic setups), to becoming a more “advanced trader”, (that looks at the larger degree chart, using the DP levels, as well as moving onto more advanced manual analysis), a little tricky. As with learning any new skill, this transition takes time.

My advice is to keep following my Blog, re-reading the Trading Course, watching the videos and most of all, practice and study your charts.

It took me many years to become a expert trader, so to expect this in just a few days or weeks is silly. MTPredictor is a very powerful piece of software. We have the automatic setups, and this is where most of you start. But then, as you learn more, you begin to use more modules and routines in the software. The Russell Index trade (shown below) is a great example of how the more experienced trader can use the other modules in the software to improve their results. So learning to become a better and more experience trader is more of a “journey” rather than a once stop solution.

This Blog will help in that journey, so today I have put together a help video on the larger degree trend for you:

http://www.mtpredictor.com/help/videos/LargerDegreeTrend/LargerDegreeTrend.html

This will help show you how I use the larger degree charts to determine the larger degree trend

Thanks, Steve

For the Advanced Traders

OK, now onto the Advanced traders. If you are a Standard Traders, and cannot follow this, then please do not worry, it will come with experience.

Although this trade was taken on the 5min Chart, can you see how we did reach the DP support zone. So at this point in this time with +8R Profit (which is a good Profit), were there any signs that this decline may be nearing an end.

Yes, on the 3min Chart, there was stochastic divergence “and” the last decline was in a Wave 5. Both of there were suggesting a low was coming in. So combining this with the DP support, “and” you were nearing the end of the day “and” you were on such a massive +8R Profit. The common sense thing to do would be to look to lock in this +8R profit.

As you can see, this nailed the low nicely.

Thanks, Steve

PS, Yes, there were lost more Advanced trades, especially on the Russell in Friday, that I do not have time to go into. So Friday was a very good day on the US e-minis, especially the Russell Index

5min TS3 sell

As you can see, we got a lovely TS4 sell, that nailed the very high of the day for you ! on the 5min TF chart.

The Russell declined nicely, breaching the STF strength band, so the Standard Traders would have swapped to the ATRStop, for a very nice +4.6R Profit. Which would have been a nice trade, especially after we had a few harder days earlier in the week.

BUT, I know a lot of you are more Advanced, so could you have squeezed more out of this trade ? Onto the next post

Thanks, Steve

Remember the 5min Charts

Hi Everybody,

Last week I reminded you all not to forget the 5min Charts, as there are often some very good setups on this time frame. Another brilliant example was on the 5min Russell Index on Friday. But before we start, as usual, let’s take a look at the 15min Charts to see the “larger degree” trend....

As you can see, there was a TS1 sell about midday on the 15min Russell, this set a high off which a decline should follow. As such you should have been looking for sells on the shorter-term, 3 and 5min Charts.

So with this in mind, let’s take a look at the 5min Russell in the next post

Thanks, Steve

TS3 sell later in the day

That was not the end of it, there was a nice TS3 sell that unfolded a little later in the day as well.

This time the STF was weak, so the projected targets were used. But this still resulted in a nice +3R Profit (ignoring slippage and commission).

I hate to finish 3 days of such huge profits with a warning. But just as after a period of hard days, we are likely to then enter a period of profitable trades. Now, after 3 very good days, the probabilities are that we will be heading for some harder days soon. This is just the Natural Cyclical Nature of Trading.

Thanks, Steve

3min TS1 sell on the 3min YM

Hi Everybody,

It is very nice to be in the “good part” of the cycle at the moment, with yet another good day on the US e-minis yesterday. I particularly liked the TS1 sell on the 3min YM, please see chart to the right. Niote that although there as a “history” triangle, this was not a loss, as this first short was not stopped out, as there was a double top. Remember, the history triangles are “filled” trades and not “failed” trades. Please see the video on the v6.5 support page.

Anyway, the YM declined nicely and as the STF was strong, Standard Traders would have swapped to the ATRStop for a nice +4.6R Profit (ignoring slippage and commission). Advanced Traders would have thought about locking in nearer +6R Profit as the Typical Wave 3 WPT was reached. Either way, this was a good start to the day :)

Thanks, Steve

3min YM – VSA buy nails the low !

OK, now let’s move onto the 3min YM chart, where a very good looking VSA buy was unfolding at 13:45EST. This nailed the very low of the day for us !!

The YM then moved higher nicely, until we reached a potential TS4 sell. OK, here you are, in a profitable long trade “and” the larger degree trend is UP, so should you swap this strong (with the trend) and profitable position to a new short weak (against the trend) position ? I think you should all know the answer by now – No.... This then held the long into the next DP target (just before the close) for a nice +3.6R Profit (ignoring slippage and commission).

Add this +7R to the +6R profit from the day before, and do you see now why I talk about the Cyclical Nature of Trading so much. These are the “good times” and have come after a few harder days last week. It is so important to understand how markets unfold. Days like these do not unfold every day, but they are there. Your job as a trader is to keep your capital intact during the harder times, so you are ready to make the most of days like these....

Thanks,

Steve

Larger degree tend – again ....

You should always keep an eye on the 15min charts “during the day” to see if support or resistance has changed, and here we can see how the 15min YM was making a TS3 buy early afternoon. This gave us confidence to lock in profits on the 3min NQ short as well as take the 3min YM VSA buy (next post) with confidence.

In this was we managed to nail the very low of the day yesterday. In fact this is the second day running that MTPredictor has managed to do this !!

Thanks,

Steve

3min NQ TS3 sell...

OK, now we had a hint that the larger degree trend was down, from the 15min Russell Index chart, we could take the 3min TS3 sell on the Russell Index with confidence.

The NQ then declined nicely, and reached the DP form the prior Wave b low. At this point caution was advised – why ? Well, as we will see in a minute the 3 YM was setting up for a very good looking VSA buy and the 15min YM was making a TS3 buy and the 154min TF was at DP support. So locking in a very nice +3.8R Profit (ignoring slippage and commission) at this stage was sensible

Thanks,

Steve

Larger degree trend....

Hi Everybody.

This is why I suggest that you should all follow all 4 of the US e-minis, as the 15min Russell Index put in a good high on the 15min charts early in the day yesterday, this set the trend to down. This then gave u confidence when any sell set-ups came along, for example on the 3min NQ.

Thanks

Steve

ES does the business, with over +6R Profit on the day!

The second trade was a DP buy, that nailed the very low of the day !

As the ES reached the first profit target, the STF was at the strength band, so we swap to the ATRStop. You will notice that the ATRStop dots swapped from blue (below the bars) to red (above) the bar as the market pushed high on a wide range bar at 3:15EST. If this happens then just trail your stop below the bar’s lows. The reason for quick ATRStop swap as because of the very wide range bar.

The result was a very nice +3.8R Profit (ignoring slippage and commission), making over +6R Profit for the day as a whole on the 3min ES.

What a brilliant day, and again a perfect example of the Cyclical Nature of Trading, and how the good times have come round again, exactly as I said they would a few days ago. I keep on going on about this, because it is how markets unfold in the real world, so you all need to be aware of this.

Thanks, Steve

ES does the business, with over +6R Profit on the day !

Hi Everybody,

This what I mean by the Cyclical Nature of Trading, after a few hard days, the 3min ES comes up trumps with two trades yesterday, both of which made profits for over +6R Profit overall............ Brilliant, and is why you must always have patience during the hard and quiet times, as the good trades will just be round the corner :-)

The first of these was a TS1 sell. With the STF weak, profit was taken at the first profit target (which was the low of the day !) for a very nice +2.5R Profit (ignoring slippage and commission).

Thanks, Steve

3min Russell comes up trumps again

Hi Everybody,

Another hard day yesterday, but at least the 3min Russell cam up trumps with a nice trade mid morning for a very nice +3,7R Profit (ignoring slippage and commission), especially when you bear in mid how choppy and narrow range the swing were yesterday.

Yes, there was a -1R loss to start with, but this was small when compared to the +3.7R Profit. Small losses and Big profit – that is what is required for a successful approach to trading.......

Thanks

Steve

3min Russell

It was not all doom and gloom on Friday, the 3min Russell Index did have a nice +3R trade (ignoring slippage and commission) as it reached the DP level (form the prior wave b low).

Thanks, Steve

A hard day.......

Hi Everybody,

You all know about the Cyclical Nature of Trading by now, and yes, we have to all accept that there will be some hard days when trading, and Friday was one of them, mainly because there was no clear larger degree trend direction. And as such the markets just chopped around in a sideways day. Days like this happen, all professional traders know and understand this.

The 3min ES was a good example, with two -1R losses early in the day. But at least there was a nice VSA (high volume spike) setup later in the day. Notice how the low was at both DP and the Typical Wave C WPT for support – as such was a good setup. It was just a pity the rally off the low was only small. But then a +1.2R Profit (ignoring slippage and commission) on the close helped reduce the -2R loss from earlier.

As I say, you all need to know about (and accept) that markets do go in cycles, but the good news is usually after a hard time we get some good, and very profitable days.

Thanks, Steve

The reason this may be new to some of you ( the Cyclical Nature of Trading ) is that most Gurus and software developers are not traders and as such do not understand how the markets really work and unfold on a daily basis.

+9.6R Profit on the 5min DAX

Hi Everybody,

Yesterday was yet another great example of a trade unfolding on the 5min Charts, as well as the 3min charts.

Here this TS3 buy on the 5min Dax turned out brilliantly. With the STF strong, normally I would suggest just using the ATRStop for trade management. But when you are at larger degree resistance (not show) “and” you are sitting on almost +10R Profit (ignoring slippage and commission), then common sense tells you to protect a profit this large.

Along with the FTSE wave 5 low (earlier post) yesterday was a very good day for the European traders among you

Thanks, Steve

Against the larger degree trend ?

Hi Everybody,

I am asked sometime what to do if you know you are “against” the larger degree trend, or is you are “unsure” of the larger degree trend. My advice, is when you are not confident that you are “with” the larger degree trend, then look to protect yourself quicker by using the 100% initial risk guideline

A good example was on the 3min ES from yesterday, where it looked like the 15min chart put in a high (off DP resistance) but then a TS3 buy setup appeared.

Normally I would suggest avoiding these types of trades, but if you wanted to take it, then protecting it quicker by moving the protective stop to break-even as soon as the 100 initial risk level was reached would be a good idea.

Thanks, Steve

One for the FTSE traders

Hi Everybody,

Here is an Advanced setup on the 3min FTSE form this morning. I say it is advanced because it uses the Elliott Wave module.

But, and this still amazes me, can you see how the low of the day was right at the Typical Wave 5 WPT. Nailing the EXACT low like this was brilliant !

The 3min FTSE then rallied straight into the DP (from the prior Wave 4 high), exactly as taught in the Trading Course (which you have all read and carefully studied :-) ) for a very nice +4.8R Profit (ignoring slippage and commission.

Amazing – to nail the exact low so well, I love it :-)

Steve

Now for the Advanced Traders

The more Advanced Traders among you will have spotted that the decline from the high unfolded in 5 waves. As you will know, trend tend to unfold in 5-waves so once you are in the 5th wave the swing is nearing and end. Therefore it makes sense to tighten up on stops, particularly as this short trade had also reached its own DP target.

Trailing stops just above the bars high would have resulted in a slightly larger +4.2R Profit (ignoring slippage and commission). Again, showing how the more Advanced Traders among you can squeeze out a little more profit above and beyond the standard trade management guidelines. This is why we provide so much education to help traders move beyond the basic and standard setups and trade management to study and learn to become a more experienced trader....

Thanks

Steve

Perfect example of how to use the larger degree trend Part 2

OK, now we have established that the 15min Chart was at DP resistance, let’s see if any sell setups (DP’s) were unfolding ?

And guess what ? We have two, the first was just stopped out for a -1R loss. As usual, any losses are kept small and under control. Then we had another DP sell, which actually nailed the very high of the day for you ! But do you all see how these 3min DP sells were good to consider as they also fell in line with the larger degree trend, which was at DP resistance in this case ?

The Russell declined for there. The result was a +3R Profit (ignoring slippage and commission) as the ATRStop was used because the STF strength band was exceeded.

I hope you all remember this example as it has been a perfect example of how to use the larger degree trend in conjunction with the time frame you are actually trading......

Thanks, Steve

PS, onto the Advanced Traders in the next post and how they could have squeezed a little more profit from this trade.....

Perfect example of how to use the larger degree trend

Hi Everybody,

I keep going on about the larger degree trend, and in particular, why it is so important to only consider DP trades when they also fall at larger degree support or resistance. Well, yesterday was a perfect example on the Russell Index.

To show what I mean, lets first look at the 15min chart.

Can you all see how the high of the day fell at DP resistance ? Therefore, this was a good time to consider any shorter term (3min) DP short trades........... So let’s move to the 3min chart and see what we got :-)

Thanks

Steve

3min Russell

Some of the other e-minis did a little better than the ES, in particular the 3min Russell Index. Here the STF strength band was exceeded so the ATRStop was used, which ran the trade up for a nice +5.9R Profit (ignoring slippage and commission)

Thanks

Steve

Cyclical Nature of Trading

Hi Everybody,

A quiet day yesterday on the US e-minis, where the markets basically moving sideways. This happens and is all down to the Cyclical Nature of Trading. Something you should all know very well by now, where markets go though cycles of good (and profitable) times, which are followed by quieter times (where we are now) before the good times come back again. So having a quiet day is to be expected.

Nevertheless, the 3min ES did give us a couple of trades yesterday, a -1R loss, followed by a +2.6R Profit (ignoring slippage and commission).

Again you must not “except” to get big profits each and every day, the markets simple do not work like that. There will be big days, but equally well, there will also be quiet days as well. That is why we always look at trading over a longer period of time, like a whole month.

Thanks

Steve

Nails every high and low

This still amazes me when I see this happen again and again ................. If you look at the 5min NQ chart, you can see how every high and low yesterday was nailed by the corresponding WPT support or resistance zone.

This is amazing and shows how powerful the routines are in MTPredictor !

Steve

Advanced Traders

And lastly, for the more Advanced Traders among you...........

Not only was this automatic DP buy on the 5min NQ at larger degree 15min DP support, but it was also at the end of a very nice 5-wave decline.

Steve

Larger degree trend............

This is worth paying special attention to, because the DP should be viewed with caution, and as I have said before they should “only” be used when they fall at “larger degree” support or resistance. And I also like to see them at the end of a clear 5-wave sequence... Well, guess what ? Here we had both ?

I will start with the 15min (larger degree) chart. As you can see, the 5min DP buy also fell at 15min DP support, as such was a good setup to consider.

Again, this is when DP’s should be used, at other times they should be avoided.......

Steve

Don’t forget the 5min Charts

Hi Everybody,

I have said this a number of times before, but please do not forget the 5min charts. I know it is easy to get stuck on the 3min charts, but there are some brilliant (and clean) setups on the 5min charts as well. A perfect example was on the 5min NQ from yesterday............

As you can see, here we had a perfect (and text book) DP buy that nailed the low of the day for you ! If you also remember a few weeks ago I was talking about how to be careful of DP’s and that they should be used with caution ? Well, this was a perfect example of when they “should” be used. I.e. when they fall “in line” with the larger degree picture (which I will look at in the next post).

But for now, this resulted in a very nice +4.9R Profit (ignoring slippage and commission) as the NQ rallied off the low of the day to reach the first target. Notice how the STF was weak, so we use the target, rather than looking to run with the ATRStop.

Thanks

Remember to check the History Signals Part 2

Once the Analysis was placed on this second history signal, you can see that the TS4 buy setup at the low, was “filled” but never stopped out. This was because of the double bottom on the two bars.

As such this was a valid +2.1R Profit (ignoring slippage and commission)

Thanks

Steve