Beware the creeping DP

You will also notice on that 3min YM chart that we had two DP sells, neither of which worked out. BUT, notice how they are against a blue STF, so both should have been avoided.............

DP’s are brilliant for nailing the “end” of a trend, but because they are “trend termination” setups they should be used with caution, ............ Especially when they appear in a market that is “creeping” like the YM yesterday. On days like this, DP’s should be avoided......

DP’s are best used only by the more experienced trader and then only when they line up with the larger degree chart.

Thanks, Steve

YM yesterday

Hi Everybody,

The last two days have been a brilliant example of why it is so important to keep your losses small. On Tuesday the 3min YM made a -1R loss. But then yesterday we had a TS2 buy setup, that nailed the low of the day for you ! But the important point is that the profit from this was +2.1R (ignoring slippage and commission)..................... In other words wiping out the prior days loss and putting you back into Profit over all. Small losses and Big Profits, that is the key to successful trading.

I know that +2.1R is only small profit, but you have to remember that we are still in the quiet part of the trading cycle, so small profits and small control losses should be expected. It will not be long before we get back to some much bigger profits.

Thanks, Steve