OK, now let’s move down to the shorter-term chart, in this case the 60min

Here we can see we had a lovely manual DP sell (that also coincided with the larger degree DP resistance). But the case in point is that you are now short, BUT what should you do when an opposing (TS3 buy) setup appears? In the ES example below I suggested that you could take signals against the larger degree trend but only if you protected them quicker than normal by raising the initial protective stop quicker. BUT what if you are already in a profitable trade that is already with the larger degree trend.

Well, it makes no sense to swap a strong position (with the larger degree tend) in favour of a weaker trade (against the larger degree trend). So in this case I would suggest sticking with your existing trade and passing on the opposing TS3 buy (in this example).

Steve

FOREX example using the GBPJPY

Hi Everybody,

Here is a good example of how to use the larger degree trend on a FOREX example, the GBPJPY.

This is a 240min chart. Where you can see how the GBPJPY was declining off DP resistance, down into DP support, so the larger degree trend during this time should have been considered as down.

OK, now let’s take a look at the short-term 60min chart.

Steve

OK............... Let’s see how this 3min short on the Dax unfolded.

Again, please look at the chart on the right (click on the chart to enlarge). You can see how this nailed the high perfectly before the DAX fell sharply. Trade management was with the ATRStop as the STF strength band was exceeded.

The result, a nice +13R Profit.......... not a bad start to the week, first thing on Monday morning :-)

But the point here is that all the setups I outline here are all covered in great detail in the Trading Course, it is up to you all to take the time to study the Course so you are ready for them.

Steve

3min Dax - Advanced trade setup

Hi Everybody

For the Advanced Traders among you.........

For those of you who have read (and then studied) the Trading Course will know that a minor ABC correction into a DP is one of my advanced trade setups. If you look at the chart to the right, this very setup unfolded just this morning on the 3min DAX.

So let’s see how this unfolds.

Again, this very setup is outlined in detail in the “Advanced Trade setups” Chapter of Part 2. So you should all know about it

Thanks

Steve

OK, form the post below, we can see that the 15min ES was down at the time this good looking TS3 buy setup appeared in the 3min chart...........

As I have already said, the newer, or less experienced traders among you should have passed on this trade as it was against the 15min chart. BUT for the more advanced and experienced traders among you, you could have taken the trade, but (and this is the advanced part) knowing that you were against the 15min trend you should have been looking to move your initial stop to break-even quicker than normal to protect the trade quicker.

Doing this would have protected the trade while still allowing it to unfold, just in case it was one of those times when the Elliott Wave pattern was out of sync and the 3min moved against the larger degree trend.

As you can see this would have worked well and allowed you to profit for a nice +3.2R trade as the ES made the initial profit target.

Trading is a funny business, as sometimes you can do the wrong thing and still make money on an individual trade, What we are doing here is still playing the probabilities by taking account of the larger degree trend, but still allowing the more advanced traders among you a way to benefit if the unexpected happens. Being wrong and still making money :-)

Thanks

Steve

What to do if you are against the larger degree trend

Hi Everybody,

Following on from earlier last week, I received some email about what to do when you have a trade that is “against” the larger degree trend. Do you just ignore it ?

Well, this depends on how confident a trader you are and how clear and clean the new setup is. If you are a new trader and a little unsure, then always better to avoid and wait for a better setups. BUT if you are an advanced or more experienced trader and you like the look of the setup then you can always take it. BUT (and here is the difference to the standard trade management guidelines), you can look to protect the trade earlier........

Let’s take a look at the ES from Friday, starting with the larger degree trend.

If you look at the 15-min ES chart here you can see how the market was declining off good DP resistance earlier in the day, so in the morning the 15min trend was down.........

Now let’s more onto the 3min chart in the next post

Steve