3min VSA sell

This was an absolutely perfect example of the high volume (VSA) trade setup. Notice how the VSA bar was a break of a very obvious level (this is what I look for) and then how the DP nailed the high perfectly. And all of this on Stochastic divergence (not shown). As such this was a perfect and brilliant example of the VSA setup, and why it was such a good one to consider a “stop and reverse” from the 5min long trade.

The ES then declined nicely for a nice +3R Profit (ignoring slippage and commission)

Thanks

Steve

PS, after a slow start this was a good end to the week. Yet another perfect example of the Cyclical Nature of Trading, so what should we be starting to prepare for after a good (and very profitable) few days ?

5 and 3min together

This is for the more Advanced Traders among you.

What happens if you are in a 5min trade and you get a good looking opposing trade on the 3min ? For example the TS4 long on the 5min ES, when a lovely VSA sell appear on the 3min ?

Well, this is where you keep an eye on “correlated markets”. We have already seen that the 5min YM had already made its first target, and you were already sitting on +3R profit on the 5min ES long, so (and this is for the more Advanced Traders among you), yes (and only if the new setup is good enough) you can consider stopping and reversing.

Thanks

Steve

Don’t forget the 5min Charts

Hi Everybody,

I have said this before, but please don’t forget the 5min Charts, as there are some great setups on these, for example the lovely TS3 buy on the 5min YM on Friday (there was also a TS4 buy on the 5min ES at the same time).

As you can see, the YM then rallied off this low to reach the first projected profit target for a nice +3R Profit (ignoring slippage and commission). We used the WPT target as the STF was weak.

So the lesson here, is even if you mainly follow the 3min Charts, don’t forget the 5min ones as 5min chart very often give you some nice tradable setups :-)

Thanks

Steve