ES 3min – dilemma con’t

As you can see, the 15min ES Chart had reached DP resistance and had started to decline, so (at the time) the larger degree trend had looked to have reversed down. So should you now consider buys on the shorter 3 and 5min Charts ?

Well, as I have said before, what I suggest is that if you are a newer trader then No, trades against the larger degree trend should be avoided. But if you are more experienced, then you can consider them, but as you know they are against the larger degree trend, then you should look to protect them more aggressively, by moving stops to break-even quicker (100% initial risk level). So it all depends on how confident or experienced you are. But either way, you can make an informed choice as you have a better idea of what the larger degree trend is doing.

Thanks, Steve

ES 3min – dilemma

Hi Everybody,

I received a very good question for a user yesterday and that was whether to take trades against a bounce of the larger degree DP or not. The TS3 buy on the 3min ES yesterday was a perfect example of this.

As you can see, this was a good looking TS3 Buy, which resulted in a +1.9R Profit using the standard trade management guidelines (ATRStop used as STF was strong). But the question was whether this should have been taken at all because the 15min chart was reversing off DP resistance, please see the next post.

Thanks

Steve

Daily S&P Chart

Hi Everybody,

If you all remember a week ago (July 6 post) I “projected in advance” the Typical Wave C WPT support zone where we should look for a potential support zone in the S&P. Well that is exactly what has happened.

If you look at the chart you can see that we have now made a TS4 low at the combination of the Typical Wave C WPT and the DP from the prior wave 4 low..........

This shows the power of MTPredictor and how you can be “prepared in advance”, I projected this level over a week ago !!

Thanks

Steve

3min NQ – TS3 buy

The standard traders among you had a little longer to wait until a nice TS3 buy setups unfolded later in the day.

As the STF was weak, you should have used the WPT targets. +3.4R Profit was available as the NQ hit the first projected target.

Please note that as the larger degree trend was up yesterday, you should have only been focusing on Buys, and not trying to “top pick”......

Thanks

Steve

3min NQ – Gap open Play

Hi Everybody,

No sooner than I have talked about the DP on the NQ in yesterday’s post than the US markets opened and gave us a perfect “Gap Open” Play again on the 3mion NQ !

As you can see from the chart the NQ declined form one DP to another for a potential +4.4R Profit (ignoring slippage and commission). This DP actually nailed the very low of the day for us as well ! Please remember the Gap Open play is an Advanced technique as it requires some manual use of the DP’s

But this was a nice start to the day yesterday..........

Thanks

Steve

3min NQ - losses

Hi Everybody,

In this post I just wanted to remind you that even the Advanced Techniques can make losing trades at times.

Normally I suggest that when the larger degree trend is uncertain or you are against the larger degree trend the Advanced Traders among you can protect against losses by moving your protective stop to break-even quicker (by using the 100% initial risk level). But sometimes this is not quick enough and a -1R can result. Please see this example from Friday on the 3mon NQ.

It is important to understand (and for me to show) that losses can and do unfold in any trading. Too many Gurus and software vendors never show losses, which just distorts what it means to be a professional trader. Losses can and do happen, the trick is keeping them small, as just -1R

Thanks

Steve

The power of the DP

Hi Everybody,

This post show how powerful the DP’s can be at times. Here the DP’s nailed both the high and low of the day on the NQ on Friday...................

Thanks

Steve