The Answer............

As you can see from the 15min TF chart to the right, the 15min Chart had just made a 5-wave rally to not only end right at the Typical Wave 5 WPT, but this was also at good DP resistance as well. As such, the recent uptrend was probably ending and a 15min high was now in the process of unfolding....

So if we see a high coming in on the 15min Chart, what direction should we be looking for on the shorter 3 and 5min charts for our actual trades ? Exactly, down, or sells.

Apart from the Advanced Trader (who can use more advanced stop loss strategies), most traders should now be looking for sells, so what do you think the answer should be on our question in the post below on the TS2 buy setup ? Exactly, as this was “against” the new down trend, this was probably a trade that was best avoided (especially by the newer and less experienced traders).

So thank you very much to Tom for this question, it a very good one that we can all learn form.

Thanks, Steve

A question on a Buy setup on the Russell

Hi Everybody,

I would like to start today with a question that I received yesterday, it was whether this TS2 buy on the 3min Russell was a good setup to consider. Please see the chart to the right, also click on the chart to enlarge....

So what is the first question we should all ask ourselves ?

Exactly – what is the larger degree trend........ so let’s take a look at the 15min Chart in the next post.

Thanks, Steve