VSA buy on the Russell

But for me, the best (and most obvious) trade yesterday was the VSA (high volume spike) Buy at the low of the day at DP support on the 3min Russell Index. As you can see, this fell in line nicely with a potential 15min Wave C low. This nailed the low of the day for you !

The Russell then rallied for the rest of the day for a nice +3.2R Profit (ignoring slippage and commission).

What I also liked, was because you were already in this nice long trade (with confidence), you could have ignored the potential sells later in the day on the 3min NQ

Steve

TS3 sell on the 3min NQ

This was the trade that was tricky yesterday, because it was such a good looking ABC pattern, “but” the larger degree trend looked to be up. So as I always say in circumstances like this, if you are unsure, then pass on the trade, but if you are experienced and like the pattern, then go for it, but protect yourself quicker using the 100% initial risk guideline.

This worked out OK with a potential +3.9R Profit (ignoring slippage and commission) available as the NQ reached the first projected profit target.

But I agree, not an easy choice on this one....

Steve

15min NQ

Hi Everybody,

Yesterday was not as easy “at the time” as it may seem “in hindsight”. I know this as I was pondering the larger degree trend as the market was unfolding yesterday.

Initially I suspected that the 15min NQ had put in a potential Wave C low, which meant the larger degree trend was up. But the 3min then gave a lovely 3min TS3 sell (next post) so we had a dilemma.

Later in the day, things became easier as the NQ (and TF) made another attempt at a Wave C low, that is why the 3min TF long on the VSA setup (post later) was the easier trade yesterday.

So overall, tricky in the morning, but easier later in the day.....

Steve