+9.6R Profit on the 5min DAX

Hi Everybody,

Yesterday was yet another great example of a trade unfolding on the 5min Charts, as well as the 3min charts.

Here this TS3 buy on the 5min Dax turned out brilliantly. With the STF strong, normally I would suggest just using the ATRStop for trade management. But when you are at larger degree resistance (not show) “and” you are sitting on almost +10R Profit (ignoring slippage and commission), then common sense tells you to protect a profit this large.

Along with the FTSE wave 5 low (earlier post) yesterday was a very good day for the European traders among you

Thanks, Steve

Against the larger degree trend ?

Hi Everybody,

I am asked sometime what to do if you know you are “against” the larger degree trend, or is you are “unsure” of the larger degree trend. My advice, is when you are not confident that you are “with” the larger degree trend, then look to protect yourself quicker by using the 100% initial risk guideline

A good example was on the 3min ES from yesterday, where it looked like the 15min chart put in a high (off DP resistance) but then a TS3 buy setup appeared.

Normally I would suggest avoiding these types of trades, but if you wanted to take it, then protecting it quicker by moving the protective stop to break-even as soon as the 100 initial risk level was reached would be a good idea.

Thanks, Steve