Amazing !!

Hi Everybody,

Isn’t the Cyclical Nature of Trading absolutely amazing ! After a very hard day on the 3min YM on Tuesday, the markets then come back with an absolutely amazing day on the 3min ES, with some massive profits............ So please read all of the next 3 posts to see MTPredictor in full swing :-)

First, let’s start with the larger degree trend.

As you can see, the ES made a high right at DP resistance, this then set the down trend for the rest of the day............

OK, onto the first 3min Chart....

Steve

Now for the Advanced Traders

OK, so far I have outlined a very hard day on the 3min YM with 5 straight -1R losses. But these are all sells, so was there anything that the Advanced Traders among you that may have helped avoid these losses.

First, knowing that we had had a few very good days before and that we are overdue for some losses (Cyclical Nature of Trading) should have made you cautious going into yesterday. Then looking at the 5min Chart and seeing that the low of the day was right at the Typical Wave C WPT should have also made you worry about taking short trades later in the day.

Agreed, I normally do not look at the 5min charts for the larger degree trend I normally use the 15min, But combine this good looking Wave C low (on the 5min) with the fact that we are overdue for some losses, would have made the Advanced Trader be very cautious and probably avoid any 3min sells as the YM rallied off the 5min Wave C low.

Yes, this is Advanced, and comes with experience, but this why I do not believe in totally automated trading as a PC would never be able to view markets as well and as a good and experienced trader.

Steve

Now the 3min Russell

But the 3min Russell did help soften the day with a nice +2.7R Profit (ignoring slippage and commission) late in the day.

So add +2.7R to -5R (again this is worst case on the YM, the other e-minis were far better than this) and you get -2.3R down overall. Yes this was a loss, but then compare -2.3R to the +4.7R and +5R profits from just the day before........... This is why I keep on saying that successful trading is all about Risk control and keeping the losses small. Here, even with 5 straight -1R losses (which is hard), all these are cleared by just one +5R profitable trade from the day before.........

Amateurs do not understand this, that is why I teach “the good, the bad and the ugly” here on a daily basis to help you all become professional traders that understand that losses can unfold, even a string of 5 -1R losses, but they are still small in comparison to the huge profits on other days. And this is what makes money overall............... To become a successful professional trader you must learn to understand this and accept it.

Steve

A hard day

Hi Everybody,

As I keep on saying, I am one of the few Gurus and vendors that talk about the hard times, and as such I will choose the “worst” example to show today. Again, there are very few vendors that even ever mention losses, let alone show worst case examples. But you all need to know how the “real world” unfolds sometimes.

As you can see, the 3min YM had a hard day. With the 15min trend down the DP buy early in the day was break even, but then followed 5 -1R losses, which was a very hard day. Days like this do happen, but they are rare.

BUT, we did get a ray of hope later in the day on the 3min Russell, next post.

Steve

PS, but this should have been expected. You all know about the Cyclical Nature of Trading, so what is likely to happen after a run of very good and very profitable days. So a hard day yesterday should have come as no surprise.

TS4 sell on the 3min TF (Russell Index)

OK, now we have established that the new larger degree trend was down, this TS4 sell on the 3min TF (Russell Index) was a perfect one to look to take, and then even let run.

As you can see, letting this one run (as it was “with” the larger degree down trend) into the close gave a potential +5R Profit (ignoring slippage and commission), making a good end to a very good day yesterday

Thanks, Steve

What of the larger degree trend ?

As you all know, you should always be aware of the larger degree trend, and this is a good example of why I follow all 4 of the US e-minis (ES, YM, NQ and TF). Here the 15min ES made DP resistance about midday, so what do you think the new larger degree trend was now ?

Exactly, down, so looking for shorts was needed.

Yes I did highlight a -1R loss on a TS3 buy on the chart of the 3min NQ in the post below, but do you see how this was now “against” this 15min DP resistance even though this was on the NQ and the 15min resistance was on the ES.

Thanks, Steve

DP Nails low of day on the NQ !!

Hi Everybody,

For the 4th day running MTPredictor has nailed the exact high or low of the day on one of the 4 US e-minis. I think that is pretty fantastic !

Here we can see a automatic DP buy on the 3min NQ. The NQ then rallied strongly. Using the ATRStop would have held the trade for a nice +4.7R Profit (ignoring slippage and commission).

I know a number of you caught this very trade as you emailed me on it yesterday, so very well done.......

Thanks, Steve