One for the Advanced Traders........

OK, the 3min NQ did rally later, but I hope all the Advanced Traders among you noticed that this rally unfolded as a 5-wave pattern,. Then a reversal started to unfold right at the Typical Wave 5 WPT which was also right at the DP. And all of this on Stochastic divergence as well.

As such, this was a good short for the Advanced Traders among you.

So looking back, MTP was able to nail both the low of the day and the high of the day on the NQ – not bad for a days work :-)

Thanks

Steve

What about the TS3 buys later ?

OK, I know you are all going to want to ask about the TS3 buys that unfolded on the 3min NQ a little later on.

Well, you should all be able to answer this for yourselves, because we have just seen how the 15min chart had just reached larger degree DP resistance and was now declining. So what was the “larger degree” trend at this time ? Exactly – down.

Yes, I know the NQ did rally later in the day, but trading is all about what you knew “at the time”, and yes, ,markets will go in the opposite direction than anticipated sometimes, this is just trading. Successful trading is not about trying to “predict” the future movement correctly, it is about Risk control, keeping your losses small and your profits large. This is something most Amateurs traders simply do not understand, you don’t have to “predict the future” to be a successful trader....

Thanks

Steve

OK, let’s now move down to the 5min Chart for the actual trade entry.

As you can see, this had you long from the low of the day (which is always nice for a day trade). The target is then the “opposing DP”.

The result, was a very nice +11R Profit (ignoring slippage and commission). Not a bad start to the day :-)

Steve

Gap open play on the 5min NQ

Hi Everybody,

The first thing you should do each day, before the open, is to look at the larger degree picture (on your 15min Chrats), so you are “prepared in advance” for larger degree DP’s.

If you had dome your homework yesterday, then you would have know that the initial gap down on the NQ landed right at 15min DP support, please see Chart to the right.

The Advanced Traders among you should all know my “gap opening” play, which is where you look for a trade after a gap opening that then starts to reverse at DP support or resistance. Well, this is even stronger if it unfolds at larger degree DP’s as the NQ did yesterday.

So let’s now look at the 5min chart, for the actual entry.......

Steve