3min CAC40 – Advanced Trade Management

Now for the Advanced Traders among you.....

As you all know, once you become more advanced you can start to look at the patterns in greater detail and start to decide when and when not to follow the standard trade management guidelines (these are for newer traders).

As we have already seen, there was a good DP support zone well below the market, so we could have used this as a “further out” target to “run” at least part of our current short trade from the automatic DP sell. There was also a good 5-wave decline unfolding on the 5min Chart (not shown) that would have helped guide this short as it ran lower.

So the Advanced Trader could have held on until this larger degree DP support zone was reached. As you can see, this would have increased profits to nearer +9.8R (ignoring slippage and commission)

Again, this is only for the more Advanced Traders among you, but does show what is possible once you become more experienced, and I have not even started to talk about possible pyramiding possibilities to increases this profit even more

Thanks, Steve

3min CAC40 - Standard Trade Managemnet

OK, as you should all know by now, I only like automatic DP sells if they are at larger degree support or resistance, or after a clear 5 wave pattern. Well, as we have already seen 3110 to 3115 was larger degree DP resistance so when this automatic DP sell arrived on the 3min Chart with its high right in this area, it was a god trade to consider...........

This was the actual high of the day – short from the very high bar of the day, that is the perfect position for any day trader !!

Using the standard trade management guidelines meant swapping to the ATRStop as the STF strength band was exceeded. This results in a very nice +3.9R Profit (ignoring slippage and commission)

I hope you can all see how this 3min sell “fitted in” with the larger degree 15min DP resistance, as such this has been a brilliant training example for you all to learn from.......

Thanks, Steve

15min CAC40

Hi Everybody,

The CAC40 gave us an excellent training example yesterday, so I would like to spend some time look at it because it shows exactly the procedure to follow to uncover great trades.

First we start with the larger degree 15min Chart, and look fir areas of support or resistance, this usually means using the DP. Yesterday we would have seen that there was strong DP resistance in the 3110 to 3115 area. So this is the area we should be alert for any shorter term automatic DP sells as the CAC started to rally yesterday morning.

Over to the 3min Chart now..................

Thanks, Steve