Back to the 3min Chart for the trade

OK, now everything looks good, the trade can be taken, and then managed, on the 3min Chart.

Here we use a break of the low of the red (sell) bar at Wave 2orB WPT resistance to enter the short trade. Notice how the 1min abc confirmation helped us avoid the first red bar at this resistance zone. That is why I always need to look at the lower time frame for confirmation of the lesser degree abc pattern...

As the STF was strong (beyond the strength band) the trade can be managed using the ATRStop. The result was a very nice +10R Profit (ignoring slippage and commission) as the ES collapsed for the rest of the morning......

I hope you have all appreciated a bit more of an “in depth” post today showing you more advanced techniques that can be used with the software :-)

Thanks, Steve

Onto the 1min Chart

Now let’s “look inside” the 3min Wave (2orB) to see whether we can see a abc pattern on the shorter 1min chart. As you can see, this is exactly what unfolded.

I normally do not suggest moving to such low time frames, but as there was no nice setup on the 3min chart by itself, this is one technique that the more Advanced Traders among you can utilize, to find more trade setups.

MTPredictor is far far more than just a set of automatic setups, this is why I am trying to educate you and teach you all about how markets unfold so you can utilize (when appropriate) the more advanced tools in MTPredictor to uncover additional trades.

But please remember, to only consider this is you are an Advanced Trader and there know when (and when not) to perform this kind of Advanced analysis. And remember, the pattern and setup should be ideal and perfect to even consider.

Thanks, Steve

Onto the 3min Chart

OK, now the high was nailed using the 15min 24hr chart the “ideal” situation would have been to get an automatic sell setup. However, that did not happen (unless you went down to the 2min chart), but for the Advanced Traders among you, what is the next best thing to look for after a important top has been made ?

Exactly a Wave (2orB) corrective high.

Sometimes (and this is why it is more Advanced) the minor abc is not visible on the 3min chart so you need to go to a lower time frame to “see” and confirm the abc pattern. I am not saying to trade off the 1 or 2min chart, all I am saying is the Advanced Trader can “look” to see if the minor abc is there and is unfolding as part of the 3min Wave (2orB) correction to then take the trade off the 3min Wave (2orB) correction.

Yes this is a more Advanced trade setup, but good to know about.

Thanks, Steve

24hr or Day Session

Hi Everybody,

Normally I run my US e-minis charts with the “day session” (well that is what it used to be called), or when the US stock market is open, in other words 9:30 EST to 16:15 EST. This is when the highest volume occurs so is the best to trade.

However, and particularly for the more Advanced Traders among you, it is always a good idea to keep an eye on the 24hr session, particularly for DP support / resistance levels. This very often has an effect near the open as support or resistance can be found from the 24hr chart when it was not present on the day session only.

Yesterday was a perfect example of this, where the high of the day yesterday was nailed perfectly on the 24hr chart.

Thanks, Steve