A look at the 3min ES – Part 3

All professional traders should also keep an eye on “related” markets. At the same time as the ES was making its low, the 3min YM was also making a very good looking Wave 5 low. Notice the clear clean 5-wave pattern as well as high volume (VSA) bars helping confirm the reversal at the Typical Wave 5 WPT. This nailed the low for you perfectly...............

Again, this show how powerful MTPredictor is, but only when you have taken the time and made the effort you study and learn........

Steve

A look at the 3min ES – Part 2

As the larger degree trend was down, it was still a good idea to keep looking for sells. Then (for users of the full MTPredictor v6.0 program), a Wave 5 high unfolded just before lunch. Wave 5 should be considered more of an Advanced technique, but do you all see how this “fitted in” with looking for sells yesterday.

Yes, “traditional” EW analysis says that 5 wave is “impulsive”, so the trend is up, BUT (from my own experience) I have found that many times (as in this example) it can be a correction. Yes, in this example the ES decline off this Wave 5 high to just below the start of the 5-wave sequence, into the DP where a low unfolded. This is why I treat waves “in isolation” just for low risk trade opportunities. I believe trading is about making money and not for discussing what is or is not technically correct. I leave that for the armchair Elliott Wave so called experts who are more interested in theory rather than actually making money.

So the end result – a nice +4.9R Profit (ignoring slippage and commission).

Steve

A look at the 3min ES – Part 1

Hi Everybody,

Today I would like to have a look at the 3min ES throughout the whole day to show you how a professional trader looks at a market during the day.

As always, let’s start with the larger degree trend, and in the 15min Charts (not shown, you can look at these for yourself) the high of the day was at DP resistance, so this set the trend to be down off that DP. So shorts were the order of the day. This 15min DP can also been seen on the 3min Chart, as you can see, this nailed the high of the day for you !!

Then, about mid morning, a TS3 sell unfolded. However, the market did not decline as anticipated and this would have results in a -1R loss. Yes losses can and do unfold, this is just part of trading. Anybody who tells you that losses do not unfold is lying ! The trick is keeping them small at just -1R.

Then.............. onto the next post

Steve

How the 3min Charts “fitted in” to the 5min

But what I found the most interesting of all, was how these two 3min TS3 sells (abc corrections) unfolded at Wave (2) and Wave (4) corrections on the 5min Chart. With the low of the day at the minimum Wave 5 WPT, this all “fitted together perfectly.............

Notice how there was a nice DP sell, that nailed the high of the day for you. The ES (3 and 5min) had the same, so that could have netted yet another massive profitable trade for you yesterday...........

So all in all, yesterday was a massive day. But then this was only to be expected as the e-minis have been quiet for the last few days so we were overdue for a massive day. This is why I talk so much about the Cyclical Nature of Trading. I just hope you all had the patience and disciple to wait and then make the most of yesterday, as the trades were there for you !

Steve

Then, later in the day, another TS3 sell appear. The difference here was that the STF was weak, so you should only have looked to the first profit target.

This was OK, as it brought in another +2.8R Profit (ignoring slippage and commission)

Steve

What a day !!

Hi Everybody

What an amazing day yesterday on the US e-minis. With so many great, and hugely profitable, trades, it is hard to know where to start.

The 3min YM was the star of the day with 2 beautiful sells on the 3min Chart. The first of which declined nicely into the Typical Wave 3 WPT target zone. The Advanced Traders among you would have know to start to lock in profits (by trailing your stop) at this level, especially when this was locking in a massive profit of over +8R (ignoring slippage and commission)

But the YM did not stop there............... next post.

Steve

Don’t forget the 5min Charts

Hi Everybody

A couple of weeks ago I reminded you all not to forget the 5min Charts, well Friday was a good example of this. The 3min Charts on the US e-minis were slow, but the 5min NQ gave us a buy signal that nailed the low early afternoon perfectly.

Yes there was a small (-1R) loss earlier as the NQ was dropping into the low. I hope you will all like the new “Historical signals” feature of the new MTPredictor v6.5RT once it has been launched...... Anyway, once the long trade was filled, the 5min NQ started to rally nicely. The only question came as an “opposing” sell appeared later in the day. As I have already said, “if” you are already in a good position that is “with” the larger degree trend, it makes no sense to want to swap to a weaker position that is “against” the larger degree trend”. Therefore, this sell should have been ignored.

The 5min NQ, then reached the DP (from the prior wave b high), where a high volume (VSA) bar unfolded. This was the signal to tighten stops. The result, was a +2.7R Profit (ignoring slippage and commission), adding this to the -1R loss from earlier in the day, and overall Friday on the 5min NQ should have been profitable.

Thanks, Steve