What about the sells ?

Likewise, if the current 15min trend was now up, what should you have done about the 3min NQ sells ?

As I always say, if in doubt or the picture does not look clear, then avoid and pass on the trade. Counter trend trades are only for Advanced Traders then them only if they have a good reason (like a very good looking pattern). These sells on the 3min NQ were not good looking at all, and as such were best avoided.........

But I agree, Friday was not an easy day on the US e-minis. But then this is just another example of the Cyclical Nature of Trading at work....

Thanks, Steve

A test of your nerve...........

After my comments in the post below, can you see how the DP on the 3min YM was one that you could have therefore considered........

But this was defiantly a hard one to manage and a test of your nerve as it basically chopped sideways for hours before finally rallying late in the day

Thanks, Steve

15min ES on Friday

Hi Everybody,

Friday was a tricky day on the US indices if you were not up with your 15min Charts. The one that was of main interest to me was the 15min ES, where the 15min DP supported the low and provided a platform off which a rally late in the day unfolded. So this changed the prior down trend to an uptrend for the shorter term charts.

Yes, this picture was not as clear on the other e-minis, but the 15min ES did find support at this DP, so you should, have been wary about shorts and looking for longs on the other e-minis as well. Even if there are minor differences in the individual e-minis, they are basically all related, so larger degree trends (if the 15min charts are similar) can "generally" apply to all 4 .....

Thanks, Steve

TS4 buy on the 3min ES

As the larger degree trend was up yesterday, this TS4 buy on the 3min ES was a good one to take............ But the only questions came as opposing sells appeared as the ES rallied. This brings up a goods question on when and when not to take opposing trades. I use a check list. First, what is the larger degree trend ? and second, are you already in a good trade?

On the ES long, the TS4 was already in the direction of the larger degree trend so it made no sense to swap a strong trade that is already with the larger degree trend for potentially weaker trades that were against it. So in a case like this I say, stick with the original trade and go with the larger degree trend. The result, a nice +3R Profit (ignoring slippage and commission).....

But how was the YM sell below post (that was against the larger degree trend) different? Well, because we were flat (no trade) so a clean decision could be made on the entry. Then the trade was protected quicker (100% initial risk).

Thanks and I hope this helps show how a view on the larger degree trend can help you on your trade decisions,

Steve

Advanced VSA sell on 3min YM

As the larger degree trend was up yesterday, most traders should have been focusing on long trades. BUT, and this is only for the Advanced Traders among you. There was a classic and perfect high volume (VSA) sell at DP resistance on the 3min YM at around 1:00pm EST.

This was a perfect example of how a market broke above old highs only to stop dead at our DP resistance and all on a high volume spike. A classic “fake out” by professional traders, and the sign for a sharp reversal.

The reason I say that this was for the Advanced Traders among you was because it was “against” a larger degree up trend, so you should have protected the trade quicker (using the 100% initial risk level). But this short trade declined past the initial support zone and found a low as the TS4 buy (next post) on the ES came in. The result, a nice +4R Profit (ignoring slippage and commission)

Thanks, Steve

Lovely DP open play on the 3min ES

Hi Everybody,

I hope you all have not forgotten to use the DP on any move from just after the open on the US e-minis. If you look at this 3min ES chart, you can see how the ES declined just after the open but ran into DP support. This was also at the Typical Wave C WPT support zone as well. This then nailed the very low of the day for you !

The ES then rallied into the “opposing” DP for a very nice +3.9R Profit (ignoring slippage and commission). A very nice start to the day.

Yes this was a slightly Advanced Trade, but it is one that I have looked at many times before.....

Thanks, Steve

FOREX – CADUSD 240min Chart

Hi Everybody,

This is a follow up on a post Tony made to the Forum on the CADUSD – please see http://www.mtptrader.com/showthread.php?p=19969#post19969 where Tony highlighted that the CAD was at the maximum Wave 5 WPT and as such was at a high risk area for a high to unfold.

Well, that nailed the high perfectly and the CAD has declined nicely since.....

So this was a great example of a FOREX trade called “at the time” by Tony on the Forum :-)

Thanks, Steve