3min NQ

Hi Everybody,

The 3min NQ was the best of the 4 e-minis yesterday with 3 lovely profitable trades.

The first, a TS2 was “in the direction of” the larger degree up trend. As was the TS4 buy later in the day. The only one that was hard was the DP sell. As you all know, you need to be cautious about DP trades, as they are “trend termination” setups and are a bit like standing in front of a train sometimes. That is why they should only be used when they are either at larger degree support/resistance or after 5 clear swings. This DP sell was at a Wave 5 high, although not perfect, that is why if you had taken it, you should have protected it quickly.

The last TS4 buy only got to the DP from the prior Wave b high, but that is a technique I have shown many times over the last week :-)

Thanks

Steve

Nails the high and low of the day !

Hi Everybody,

What an amazing trade on the 3min YM yesterday. I just have to share this with you all, as the TS4 sell nailed the very bar of the high.................. Then the profit target nailed the very bar of the low of the day for you ! I still find it amazing how well these levels work sometimes.

Yes there was a -1R loss later in the day, but the +5R Profit (ignoring slippage and commission) more than made up for this...

I agree, it was slightly nervous, with another sell appearing on the way down, but the YM did make the first profit target off the first TS4 sell.

Thanks

Steve

Now for the Advanced Traders

As usual, the more Advanced Traders among you could have squeezed some more profit out of that YM short – how ?

Well, as you can see, the YM declined into an area where it was at two WPT support zones, one from the original TS3 sell, and one from the swings since then. Also, the YM made a high volume expansion bar into this double support zone. This is normally an indication off a “blow off” and that a move is nearing an end.

Will all this happening “and” you are sitting on +10R Profit (ignoring slippage and commission), what do you think the sensible course of action is – exactly, look to tighten your stop to lock in this huge profit.....

Thanks, Steve

Cyclical Nature if Trading

Hi Everybody

Isn’t the Cyclical Nature if Trading amazing ! Just as I said yesterday, were we were “overdue” for a good trade, and then look what came along on the 3min YM yesterday. A perfect TS3 sell setup that made +7R Profit (ignoring slippage and commission) and all using the standard trade management guidelines of swapping to the ATRStop after the STF strength band was exceeded...........

Now do you all see why Patience and Discipline is needed to get you though the harder times so you are ready to make the most of brilliant trades like this !

Thanks, Steve

Another small profit later in the day

For the Advanced Traders among you, there was a nice high volume (VSA) sell later in the day. But as we have already seen, because the markets were only making small swings yesterday, the profit was small, but it was a profit

Thanks

Steve

First minor target (again)

Hi Everybody,

Yesterday I looked at using the DP form the prior Wave b swing as a “first minor” target when the markets are only making small swings. Well, another example unfolded on the 3min NQ again yesterday.

As you can see, the decline from the TS3 sell early in the day did decline, buy only slightly, but, just look where the low came in, right at the DP from the prior Wave b low. Just as I outlined in my Blog entry yesterday......

BTW, it is no surprise that we are only getting small profits at the moment and this is because we are just in that part of the cycle and the markets are only making small swings at the moment. You should all know about the Cyclical Nature of Trading by now, as I mention it regularly. As you all know, this will change as we move back onto the big profits part of the cycle soon.

Thanks

Steve

First minor target

Hi Everybody,

Just a quick reminder, (for those of you who have not read the Trading Course for a while), that you can use the DP (decision Point) form the minor Wave b low, if you suspect that the current swing, off a Wave C high / low, may not continue into the first target.

There was a good example of this off the TS3 sell on the in the morning on the 3min NQ on Friday....

Thanks

Steve