3min ES TS1 sell

Hi Everybody

Today I would like to take a close look at a TS1 sell on the 3min ES yesterday. The reason I want to take a good look is that we have amended the code in MTP v6.0 to take account of double tops and bottoms, which we don’t have in the RT add-ons, so this TS1 sell was found in MTP v6.0 but not in the RT add-ons, so I want to explore it in detail to show you the logic behind it.

First, let’s look at the completed trade. As per the standard trade management guidelines, the ATRStop was used as the STF strength band was exceeded. The trade was then stopped out for a very nice +7R Profit (ignoring slippage and commission).

Yes, there would have been a -1R loss just before the trade got going, but as you can see, this +7R profit more than made up for the small -1R loss first

OK, now let’s look at the logic behind the TS1 setup in more detail in my next post

Thanks, Steve

PS, I will also take a good look at this setup in my customer Advanced trading webinar later today (MTP customers only)

3min FTSE – Wave 5 high

Hi Everybody,

Here is one for the Advanced Traders among you.

The 3min FTSE just made a good looking 5-wave rally (off the prior TS4, ABC, low) with the high reversing right at the Typical Wave 5 WPT. There was also Stochastic divergence.

As you should all know, the initial target off a complete Wave 5 is the DP from the prior Wave (4) swing. Well, the FTSE declined straight into this zone where +4.7R Profit (ignoring slippage and commission) was available.

Again, this is for the Advanced Traders among you, but does show what some of the more advanced features in the software can do

Thanks, Steve

YM 3min

As you can see from the chart, yesterday was another horrible day where the market just moved sideways in a narrow range.

There was a TS3 sell later in the day, but as we were at 15min DP support this should have been avoided by all but the Advanced Traders among you. Then (if you did take it) as it was against the 15min DP, stops should have been brought to break-even quickly..

But either way, yesterday was another hard day, which is what we were expecting.....

Thanks, Steve

YM 15min

Hi Everybody,

As I anticipated in yesterday’s post, it was another hard day yesterday on the US e-minis, but then this is just to be expected because of the cyclical nature of trading.....

Having said that, just take a look at the YM 15min Chart, and where yesterday’s decline stopped – right at our DP support

So, knowing that we were at 15min DP support and in the hard part of the trading cycle, what should you have been looking for on the 3min Charts ?

Thanks, Steve

FOREX – EURUSD short Part 2

OK, but what of the “larger degree” trend I hear you all ask.

Well, if you look at the 4hr Chart you can see how the 1Hr DP sell was actually unfolding “at the same time” as a TS3 sell on the 4hr chart. So this gave added weight that a high was unfolding and as such it was Ok to consider the 1hr short.....

Thanks

Steve

FOREX – EURUSD short

Hi Everybody

Here is a great “manual” DP sell on a 1hr (60min) EURUSD chart. As you can see the short was entered as the markets reversed off the DP level with a red (sell) reversal bar. The target was the “opposing” DP level.

The EUR has just reached this level where this short trade would have been stopped out for a nice +4.3R Profit

BUT, what of the STF strength band I hear you all ask ? Exactly, the above sentence was actually a little “test” to see how many of you were paying attention. Exactly, as the STF strength band has been exceeded, the stop is now trailed just above the ATRStop.

Thanks

Steve

The Cyclical Nature of Trading...

Hi Everybody,

Well last week was a perfect example of the cyclical nature of trading, where we had a few hard days at the end of the prior week, then the first part of last week was brilliant with 3/4 days of good (and large) profits that was then followed by a much harder day on Friday. This is how the markets work in real-life, so should any of you been surprised that Friday was a hard day ? No, because it came after a few good, and very profitable days.

If you look at the 3min Charts on Friday you can see they were horrible, with most of the day being range bound in narrow and choppy swings. These days are very very hard to trade. But this is where armatures complain and say that the markets are impossible But then they do not understand that this comes on the back of a few brilliant days. This is what trading is all about, so as you all know about the cyclical nature of trading now, you should have have been anticipating a harder day so it should have some as no surprise.....

On days like this it is best to either look to bank profits quickly or at the very lease get your protective stop to break-even quicker. Either way, they are hard days to trade.

I would not be at all surprised to see a few more hard days, before the cycle gets back into the good and profitable part, maybe later this week.

Thanks, Steve