FOREX – GBP 60min Chart

Hi Everybody,

I was asked a question on a GBPUSD 60min chart and what to do when there is no clear trend on the larger degree chart (240 and 480 min in this case) ?

Well, when the larger degree chart is either flat (as in this case) or the trend is not clear you can play both sides of the market, but be a little more cautious. In other words look to bring your protective stop closer to the market quicker than normal. This usually means the 100% initial risk level.

In this case, the3 latest TS4 sell would have been stopped out for break-even.

Thanks

Steve

NQ DP Buy

Hi Everybody,

As I said below, there were so many good trades yesterday it has been hard deciding which one to talk about today. The one that interested me the most was the DP buy on the 3min NQ. The reason I liked this was that it came just after the open so was also one of our “Gap Open” plays as well.

The STF strength band was quickly exceeded so the trade management swapped to the ATRStop, which held the long as the rally continued, eventually stopping out the trade for a nice +6.5R Profit (ignoring slippage and commission)....

But do you all see what has happened here, we had a few hard and quieter days earlier in the week, but now we have come back to some brilliant and massive Profits. This came on the back of some massive profitable days last week. This is just the natural Cyclical nature of the markets. We all need the patience and discipline to sit though the hard days, because the good days will come round. So I hope me talking about this day after day, and showing you the cycle day after day has helped you understand how markets really unfold in the Real World !

Thanks, Steve

15min DAX long

I know we mainly look at 3 and 5min Chart and use the 15min for the longer time frames analysis, but I just want to remind you that you can still get some nice trades on the 15min Charts itself.

Here is a great example on the 15min DAX form just yesterday. As you can see, this nailed the low beautifully before the DAX rallied strongly. It has just reached the project profit target (as the STF is weak) where a profit of approx +8R (ignoring slippage and commission) was available.

As I said yesterday, there were just so many good trades yesterday I am finding it hard which once to tell you about in today’s Blog entries.....

Thanks, Steve

3min FTSE – TS3 sell

Hi Everybody.

Wow, where do I start, Thursday was an absolutely amazing day with profits on so many markets I simply do not have time to cover them all here. But seriously, this is yet again a perfect example of the Cyclical Nature of the markets, because after a quiet start to the week, we now have some brilliant profits coming though.

I would like to start with a perfect TS3 sell on the 3min FTSE, for the European traders among you. There is little for me to add to the chart as this was a standard TS3 trade setup that was managed using the standard trade management guidelines (ATRStop was used as the STF strength band was exceeded).

The result, a very nice +4.4R Profit (ignoring slippage and commission)

This was using the standard trade management guidelines. The Advanced Traders among you could have come out at the low for nearer +6R Profit as the 15min DAX was putting in a very nice ABC low (next post). But even +4.4R Profit using the standard guidelines is a very nice Profit

Thanks, Steve

15min YM

Hi Everybody,

Before you read this post, please cast your eyes down and read the post below. There I show that “ideally” the 15min YM should continue up into the DP (off the prior Wave 4 high), which I had on my Chart yesterday, well, guess what ? This is exactly what unfolded yesterday !!

As you can see form the chart today, the YM rallied up into the DP then made a high before declining sharply. In other words, it unfolded exactly as I was anticipating in my post yesterday, i.e. reaching the DP level, a level that was on the chart a whole day “in advance”. This is the power of the MTP levels and show how important it is to keep a good eye on them in your own trading............

Thanks

Steve

15min YM

As you can see, the 15min YM made a low at the minimum Wave 5 WPT, so any further downside movement as unlikely, in fact a rally to the DP (form the prior wave 4 high) was “more likely”. So any 3 and 5min sells were “against” the new 15min up trend.

For newer and less experienced traders, and especially when we know we are in the harder part of the trading cycle any trades that “against” the larger degree trend should be avoided. For the more experienced trader, they can use the 100% initial risk level to protect trades earlier. Either way, any sells yesterday were against the new 15min up trend off the Wave 5 low, so caution should have been used.

I agree, the rally off the lows was very strained, as the markets just drifted sideways yesterday. But then this was to be expected because of the position of the trading cycle we are currently in.

Many new traders find this difficult to understand, they seem to “expect” markets to unfold perfectly every day, this simply does not happen in the real world. Trading is not easy, it requires patience and discipline and has days (like yesterday) that are frustrating. The sooner you learn to deal with days like this the sooner you can make the jump to becoming a professional trader....

Thanks

Steve

3min YM

Hi Everybody,

Yesterday was another hard day, with the markets just chopping sideways in narrow ranges. But then this should have come as no surprise after my comments yesterday – we are in the hard part of the cycle (Cyclical Nature of Trading) so you should all be prepared for a few harder days. This is just the natural way profits and losses unfold.

I did got a question yesterday on whether we could have avoided (or at least limited) the sells that did appear yesterday, for example on the 3min YM.

As you all know by now, it is always a good idea to keep an eye on the “larger degree trend” to see how the 3 and 5min signal “fit in” with the 15min chart. So onto the next post.......

Thanks

Steve