Massive +22R Profit on the 3min DAX

Hi Everybody,

What a day for the European Traders among you............

As you can see, the 3min DAX gave us a DP sell that nailed the high of the day for you ! But that is not the amazing bit, the Dax then collapsed from there. The STF was string so Standard Traders swapped to the ATRStop. This held you short as the fall continued........

The only thing I would say, is once you get wide range bars down (on high volume) “and” you are sitting on such a massive Profit (+22R) then the sensible course of action is to look to lock this in. As you can see, this was then stopped our for a massive +22R Profit (ignoring slippage and commission) !!

Yes such massive trades like this do occur, and yes MTPredictor does catch them........... the question is, did you :-)

Steve

Set the larger degree trend

Hi Everybody,

OK, let’s start with the larger degree trend on the 15min ES yesterday. As you can see, the 15min ES made a low right at WPT support. This was a similar situation to a few days ago, where we had reached a Wave 3 target, so while I do not suggest trading “against” a Wave 3 on that time frame, on the “shorter time frame” a counter trend swing usually unfolds, and that is what we look to catch on the shorter, 3 and 5min Charts.

OK, so now we have established that the 15min trade was up off this WPT support zone, let move down to the 3min ES Chart

Thanks

Steve

VSA buy on the Russell

But for me, the best (and most obvious) trade yesterday was the VSA (high volume spike) Buy at the low of the day at DP support on the 3min Russell Index. As you can see, this fell in line nicely with a potential 15min Wave C low. This nailed the low of the day for you !

The Russell then rallied for the rest of the day for a nice +3.2R Profit (ignoring slippage and commission).

What I also liked, was because you were already in this nice long trade (with confidence), you could have ignored the potential sells later in the day on the 3min NQ

Steve

TS3 sell on the 3min NQ

This was the trade that was tricky yesterday, because it was such a good looking ABC pattern, “but” the larger degree trend looked to be up. So as I always say in circumstances like this, if you are unsure, then pass on the trade, but if you are experienced and like the pattern, then go for it, but protect yourself quicker using the 100% initial risk guideline.

This worked out OK with a potential +3.9R Profit (ignoring slippage and commission) available as the NQ reached the first projected profit target.

But I agree, not an easy choice on this one....

Steve

15min NQ

Hi Everybody,

Yesterday was not as easy “at the time” as it may seem “in hindsight”. I know this as I was pondering the larger degree trend as the market was unfolding yesterday.

Initially I suspected that the 15min NQ had put in a potential Wave C low, which meant the larger degree trend was up. But the 3min then gave a lovely 3min TS3 sell (next post) so we had a dilemma.

Later in the day, things became easier as the NQ (and TF) made another attempt at a Wave C low, that is why the 3min TF long on the VSA setup (post later) was the easier trade yesterday.

So overall, tricky in the morning, but easier later in the day.....

Steve

One for the European Traders...

Hi Everybody,

A nice TS4 buy (using IQFeed data) this morning on the 3min FTSE. Notice how the DP target nailed the high perfectly. Standard Traders among you would have swapped to the ATRStop as the STF strength band was exceeded. This gave a nice +3.3R Profit (ignoring slippage and commission).

Notice how the loss earlier was kept small. -1R is a lot less than the +3.3R made on the Profit, small losses and large Profits, that is the key to successful trading.......

Thanks, Steve

3min YM

OK, let’s now look at the 3min Chart.

The first trade of the day was not filled because the YM rallied and exceeded the high “before” taking out the buy order, so no trade. Then there was a legitimate buy that resulted in a -1R loss. Yes losses can and do happen, but as we all know by now, the trick is keeping them small, which is what we did here.

Then the question comes as a DP sell arrived later in the day. Yes this was in line with the 15min DP so was a valid one to take. But the difficulty came as a TS4 buy appeared a little later. Should you ignore, or stop and reverse or what ?

This was a difficult decision, because, yes, the 15min was at DP resistance, but that was only minor. So the best course of action would have been for the standard traders among you to just protect the profit as the TS4 buy came in. But the more advanced traders among you could have stopped and reversed for another +2R on the way back up again.

But before you all email in, this was not an easy call as the DP high was only minor resistance on the 15min chart.....And that is all that unfolded – a minor decline from that high.

Thanks, Steve