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
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
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