Continuing from the post below.

Ah, I hear you all say, nice to call the day’s low, BUT what of the “larger degree” trend, what was this saying as the 3min Wave 5 low was coming in ? A good question, so let’s take a look..........

Well, as you can see, the 15min ES was right at DP support “as” the 3min Chart was making its low, so this was a perfect example of how the 15min Chart was working in harmony with the 3min, and as such allowed the Advanced Traders among you to nail the very low of the day yesterday.

This is the power of MTPredictor, once you learn how to use it and as such can use it’s techniques and modules correctly, And that is what I aim to show you on a daily basis ion this Blog :-)

Thanks, Steve

Nailing the day’s low on the ES

OK, here is one for the more Advanced Traders among you.

If you look at the 3min ES chart you can see how (at the very low of the day) the 3min ES made a wave 5 low (as found by the Elliott Wave module in MTPredictor). But what interested me was how this wave 5 low was at the minimum Wave 5 WPT and was on good Stochastic divergence (not shown on chart) and was also on a VSA high volume spike (not shown on the chart) so was an “ideal” place to look for a low to unfold.

As you can see, the ES rallied into the DP (from the prior minor Wave 4 high), but the STF strength band had been exceeded, so time to swap to the ATRStop for the trade management. This held the long as the ES rallied sharply, to end with a massive +10R Profit (ignoring slippage and commission).

What a nice trade, and this is a great example of yet another day when MTP has nailed the very high or low of the day for you.

Thanks, Steve

Losing Trades

Hi Everybody,

I think it is important to remind you all that there will be losing trades. This happens with all systems and all approaches. But there are too few Gurus or software vendors that never mention losses, so new and amateur traders find them hard to deal with. But we at MTPredictor are different, and I will talk a lot about losers in this Blog.

Losses can and do happen, but the important part is that they are kept small, at just -1R loss, so even if you have 1, 2, 3 or even 4 in a row (which can happen), then just one +6R profit (like the Russell trade below) will then put you back in profit overall. This is why it is so important to use correct Position Sizing, to keep the inevitable losses small and Profits large.

Lastly, when you are new to trading, it may be better to reduce your initial risk, to 1% for Futures and Forex, and 0.1% for Stocks, in this way the drawdown’s will be smaller for you initially...

Thanks, Steve

Gap Open play on the Russell Index

Hi Everybody,

If you remember a couple of days ago I talked about a “Gap Opening” play where we look for a market to make a move into a DP within the first few bars of the trading session, usually after a Gap Open. Well, this is exactly what happened on the Russell Index yesterday, where the 3min Chart bumped up into DP resistance, where a red (sell) reversal bar unfolded. The market then declined straight into the “opposing DP” when you should have started to trail the stop just above the bars high to protect the profit.

The result, a nice +6.4R Profit (ignoring slippage and commission).

Yes, this is an Advanced trade, but I did cover it just a few days ago, so it should have been fresh in your minds

Thanks, Steve