3min NQ

As the 15min trend (not shown) was up, it was a good idea to be looking mainly for long trade yesterday. Even when there is a clear trend direction, losses can and do happen, all professional traders know and accept this. And, unlike most vendors, we do talk about and show losses. For example on the 3min NQ where we had two -1R losses yesterday. BUT (and this is the important point), these where kept small, mush smaller than recent Profits. Small losses and Big profits, that is the key to long term successful trading.

For Advanced Traders, there was another opportunity for a long trade as support came in at the DP on Stochastic divergence. Just using the ATRStop would have ridden this long up for a nice +6.4R Profit (ignoring slippage and commission).

But do you all see how this one Profit at +6.4R was much much bigger than the two (-1R each) losses for a total of -2R. This is how professional Traders make money over time, it is the relative size of the Profits and losses, not their number, most Amateur Traders never fully appreciate or understand this ....

Thanks, Steve

High Volume (VSA) spike and DP support

Hi Everybody,

Shortly after the open yesterday the 3min YM made a high volume (VSA) spike that unfolded at DP support, this was the sign that a low was unfolding and cue to take a new long trade. The YM then rallied nicely to just exceed the first DP target. Normally I would suggest swapping to the ATRStop at this point, however, other markets were at DP resistance as well and showing signs of the high (see NQ chart in the next post), so locking in a nice +2.4R Profit (ignoring slippage and commission) was a good idea.

As such, this was a nice start to the day :)

Thanks, Steve

DP and High Volume (VSA)

Hi Everybody,

I would like to start today with a look at the 3min YM shortly after the open when a nice high volume (VSA) spike unfolded at DP support. This was sign that a low was unfolding and a long trade should be considered.

The YM then rallied nice and started to exceed the initial DP target. Usually I would suggest swapping to the ATRStop at this p9ont, but we had resistance coming in on other markets, see the NQ chart i my next post, so looking to lock in a quick +2.4R Profit (ignoring slippage and commission) was a good idea.

This was a nice start to the day :)

Thanks, Steve

FTSE – nails high and low of the day !

Hi Everybody,

First today I would like to wrap up the Analysis on the FTSE I posted yesterday. As you have already seen, we managed to nail the exact high of the day, as the markets declined after the Pre Budget Speech. But what I found absolutely amazing was where this decline stopped - right at DP support.

So here we were on a day where the markets were being pushed around by an adverse reaction to Alistair Darlings Pre Budget Speech, BUT MTPredictor nailed the EXACT high and low of the day – now, I find that amazing, and shows the power of the tools in MTPredictor !

Thanks, Steve