Advanced Analysis – the true Holy Grail

OK, I hope you have all been paying attention to my “Advanced Analysis” posts recently, because there was yet another perfect example of my favourite trade that I call the Holy Grail of trades.................. Where we use the tools in MTPredictor to nail the very end of the Wave (2) correction, to then be able to trade the Wave (3) swing.............

As we all know, Wave (3) in Elliott Wave terms is the strongest and longest swing so carries the highest profit potential. Therefore, this is the best possible trade you can have as it carries the largest profit potential for the smallest initial risk....

If you look at the chart, we already knew that the larger degree trend was up, so when the 3min YM made a 5 wave rally (Wave 1), we knew to look for a abc correction (Wave 2). As you can see, the tools in MTPredictor nailed these swings for us. The target was the Typical Wave 3 WPT. This was duly reached later in the day for a brilliant +7.8R Profit (ignoring slippage and commission)......................

Amazing..... and all nailed by the tools in MTPredictor !

Thanks, Steve

Larger degree tend on the 15min Chart

Here is the 15min ES chart, which as you can see made an automatic TS4 buy setup at the low of the day. This set the trend to UP for the rest of the day................ Therefore, as we have already seen, the two sells on the 3min YM charts were “against” this 15min up trend, so should have been avoided......

This was a good example and I hope has helped you all to see how to use the larger degree trend to filter your actual setups on the shorter term chart..

This applies equally well to 240 and 480min charts when trading on 60min Forex, to weekly charts when trading on Daily Stocks. It is the same principle and us using the 15min charts for trades on the 3 and 5min charts, as we do regularly here on this Blog.

Thanks, Steve

How to avoid losing trades..

Hi Everybody,

Here is a chart of the 3min YM from yesterday. As you can see there were two losing sells as the YM rallied. Yes there were only two sells as there was a double top with the second history triangle and the TS4 label so there was only one trade there. So the question arises – was there a way to avoid these losing trades ?

As always, the answer is in the larger degree trend, which we will see was UP in the next post.

So this was a good example of how using the “larger degree trend” helped avid what otherwise would have been two -1R losses.

Thanks, Steve