Now for the Advanced Stuff

OK, Did any of you notice how I labelled a “minor ABC” high just after the TS3 buy in the morning ? And do you remember how I said that we should be looking for sell setups, as the larger degree trend was down ? Well, this is where the Advanced Trader among you could have used this minor Wave C high for a new short trade.

The pattern can be seen slightly easier by dropping down to the 2min chart. I do not suggest doing this all the time, but only when you have a clear idea of the larger degree picture and you are happy working with Elliott Wave Patterns.

The result was a nice +4.8R Profit (ignoring slippage and commission) as the NQ mad a minor 5-waev decline into a high volume (VSA) spike. This actually nailed the low of the day for you !

As you can see, once you become more experienced, you will be able to uncover so many more potential trade setups

Thanks, Steve

3min NQ Chart

OK, now we have established that the 15min larger degree trend was down, we should be focusing on sell setups, so the TS3 buy that unfolded in the morning should have been avoided. The only sell that Standard Traders should have considered was the sell in the afternoon.

The NQ did decline slightly from this TS3 sell, but only in an ABC pattern. Locking in a small Profit of +1R (ignoring slippage and commission)at the Wave C low was about the best you could have done.

Not all days have big winners, we should all know that by now, this is because of the “Cyclical Nature of Trading”. I have written a lot on this before, where profits, quiet times and losses goes though cycles. We have had some great trades last week, so it is no surprise to find us in the quiet period of the cycle at the moment. This is just how markets unfold in the real-world....

Thanks

Steve

Larger degree trend first

Hi Everybody,

As usual, let’s start with the later degree trend by looking at the 15min NQ Chart.

As we can see, the 15min NQ found resistance at the DP (which nailed the high of the day) and a decline then followed. This set the trend to down.

Now let’s look at the shorter term 3 and 5min charts to see what setups there were

Thanks

Steve