15min YM

As you can see, the 15min YM made a low at the minimum Wave 5 WPT, so any further downside movement as unlikely, in fact a rally to the DP (form the prior wave 4 high) was “more likely”. So any 3 and 5min sells were “against” the new 15min up trend.

For newer and less experienced traders, and especially when we know we are in the harder part of the trading cycle any trades that “against” the larger degree trend should be avoided. For the more experienced trader, they can use the 100% initial risk level to protect trades earlier. Either way, any sells yesterday were against the new 15min up trend off the Wave 5 low, so caution should have been used.

I agree, the rally off the lows was very strained, as the markets just drifted sideways yesterday. But then this was to be expected because of the position of the trading cycle we are currently in.

Many new traders find this difficult to understand, they seem to “expect” markets to unfold perfectly every day, this simply does not happen in the real world. Trading is not easy, it requires patience and discipline and has days (like yesterday) that are frustrating. The sooner you learn to deal with days like this the sooner you can make the jump to becoming a professional trader....

Thanks

Steve

3min YM

Hi Everybody,

Yesterday was another hard day, with the markets just chopping sideways in narrow ranges. But then this should have come as no surprise after my comments yesterday – we are in the hard part of the cycle (Cyclical Nature of Trading) so you should all be prepared for a few harder days. This is just the natural way profits and losses unfold.

I did got a question yesterday on whether we could have avoided (or at least limited) the sells that did appear yesterday, for example on the 3min YM.

As you all know by now, it is always a good idea to keep an eye on the “larger degree trend” to see how the 3 and 5min signal “fit in” with the 15min chart. So onto the next post.......

Thanks

Steve