Well, here is the answer..........

For those of you who read this blog regularly, you will know that it is always best to try and orient your trades so they fall “in the direction of” the larger degree trend. So let’s now look at the 15min Chart of the Russell.

Can you all see how the first 3min DP sell’s were not at the 15min DP resistance, but the second one (14:40 EST) was. In other words, the second 3min DP sell at 14:40 was the stronger signal because it was at the larger degree DP resistance.

And as you have seen in the post below, this 3min DP sell then made approx +8R Profit (ignoring slippage and commission) as the Russell declined nicely into the close.

Thanks

Steve

Question on the Russell Index

Hi Everybody,

Here is an interesting question, that one of our newer users emailed me yesterday. He wanted to know why the DP sell on the 5min Russell Index at 14:40EST was better than the one at 12:50EST and if there were any reason to choose one over the other ?

Well, from what you have all learnt so far on this Forum, what do you all think

(hint: what was the 15min, larger degree, chart saying)

I will answer this in the next post....

Steve

PS, chart is using the RT add-ons on eSignal

Gap Opening Play on the YM

Hi Everybody,

I have a few things to talk about today, but I would like to start with a “gap opening” play, that I have taught in the Trading Course, This is where a market (mainly US minis) gaps on the open but then reverses very quickly after the open at DP support or resistance. Many times you can get a quick “pop” as the gap is reversed quickly in the first move of the day.

This is exactly what happened on the 3min YM yesterday, where the gap opened down, then stopped and reversed right at DP support, before a rally unfolded, that then went straight to the opposing DP, where a nice +2.8R Profit was available.

This is a nice setup for the Advanced Traders among you......

As always, this works better when it is “with the larger degree trend”. And this 3min DP low was also right at 15min DP support (not shown), so was a good setup all round.

Thanks, Steve