The Cyclical nature of trading..........

Yep, you have guessed it, after the last few days, that have been absolutely brilliant, with some absolutely massive profits, it looks like it is now time for the cycle to turn and put us into the harder part of the cycle where we get a few small losses and some quieter times. We have all seen this many times before, so this should have come as no surprise to any of you !

This was reflected in the 3min ES which was a hard day and then gave us a losing TS4 sell, just before the market declined ! This is frustrating, but this is how trading unfolds sometimes in the real world.........

Losses can and do happen, it is your job as a professional trader to keep them small at just -1R. If you do this, then the profits (during the good parts of the cycle) will more than make up for these. This is what makes you money over time. Keeping the losses small and the profits large.

I hope this Blog is helping show you all how the markets unfold in the Real World, so you are all prepared and know what is happening on a daily basis.

Thanks, Steve

3min YM – TS3 sell later in the day

For the Standard Traders among you....

I know not all of you are Advanced Traders, so let’s take a look at the 3min YM that gave a Standard TS3 sell signal on the 13:36EST bar, which was filled on the 13:42EST bar.

The YM then declined into the first projected profit target nicely where the trade would have been stopped out for a very nice +4.6R Profit (ignoring slippage and commission), using the stranded trade management guidelines.

So this was a perfect standard trade setup using the standard trade management guidelines...

Thanks, Steve

5min YM – TS1 sell Part 2

For the Advanced Traders among you....

For those of you who are using the full MTP v6.0 (via the timed updates) will have seen that the decline on the 5min YM unfolded as a very good looking 5-wave sequence. The Elliott Wave module in V6.0 not only found the wave 5 low, but also projected the WPT levels where the wave 5 was likely to end.

So what would have the sensible course of action been as the YM entered the Typical Wave 5 WPT “and” you were sitting on over +8R Profit on your current TS1 short trade................... ?

Exactly, start to protect the profit by trailing your stop just above the bar’s highs. This then banked profits for you at the low of the day !

As you can see, MTP has the tools available for you to make these informed decisions. All you have to do is take the time, do the study to understands the Trading Course and how Elliott Wave patterns can and do unfold in the markets.

Thanks, Steve

5min YM – TS1 sell

Hi Everybody,

Wow, what a brilliant day on Friday. In fact there were so many good setups on the US e-minis on Friday that I don’t have time or space to look at them all here, so I will focus on just one, a TS1 sell on the 5min YM.

If you look at the chart, you can see how the 5min YM gave a nice TYS1 sell at 11:05EST on Friday. You should all have been ready for this one as it was almost identical to the TS1 sell I outlined in great detail just a few days ago on the ES.

The YM started to decline nicely, exceeding the STF strength band, so the standard trade management guidelines say to swap to the ATRStop. This would have held you short as the decline continued.

BUT in this post I would like to show you how you could have come out at the low of the day for a nice +8.9R Profit (ignoring slippage and commission). For this lets look to the next post for why you would have protected profits at the low....

Thanks Steve

3min NQ - VSA setup

OK, here is one for the Advanced Traders among you

At 11:45 EST the 3min NQ made a high volume reversal (VSA) signal. The Advanced Traders among you would have spotted that the NQ was both at DP support and on Stochastic divergence. Both signs for a potential low. All that was needed was a blue, buy, reversal bar. This unfolded the very next bar.

This nailed the low. The 3min NQ then rallied in a Elliott Wave 1,2,3 wave pattern, so tightening stops as the Typical Wave 3 WPT was reached would have been a good idea...........

As you can see, even in a quiet day, there are normally setups for the more experienced and Advanced Traders among you, those of you who have spent the time to learn and study the MTPredictor trading course....

Thanks, Steve

3min ES

Hi Everybody,

After a couple of brilliant (and very profitable) days it was no surprise to have a quieter day on the 3min ES. As you can see from the chart there was little going on. This is where the patience and discipline is required.

Having said that, the DP’s did nail most of the main turns during the day for you

Thanks

Steve

One for the European Traders....

Hi Everybody,

Here is a great trade on the FTSE 3min, to show that the European Traders among you are also having some nice trades....

A standard TS3 buy setups, that went to the first profit target. As the STF was weak, the WPT target was used (standard trade management guidelines). This resulted in a nice +7R Profit (ignoring slippage and commission).

All in all a perfect and completely standard trade setup

Thanks

Steve