Now to the 3min Chart for the trades

OK, now we know that the larger degree trend was up, lets move down to the 3min Chart.

Here we have two buys and one sell yesterday. As the trend was clear up, the Standard Traders among you would have focused on the two buys.

The first of these would have been break-even, but the second was the best trade, with a Profit of approx +5R on the Close (ignoring slippage and commission).

This char is worth a few more comments for the more experienced traders among you, in that the second (TS3) buy was a lot “clearer” with nice clean swings than the TS1 earlier. You have heard be talk before about only trading when the “pattern is clear” and this is a good example, and why I (personally) would have preferred just the TS3 buy as it had a clearer pattern.

Thanks, Steve

Larger degree trend on 15min Chart

Hi Everybody,

We all know about the Cyclical Nature of Trading by now, and it is nice to see that after a hard and tricky period, we are back in the good times with another good day, particularly on the NQ yesterday....

But lets start with the 15min NQ chart, for the larger degree trend. And this was a lot easier yesterday with a TS4 low catching the low, and as such seting the trend to be up for the rest of the day.

I like it when patterns are nice clear, clean and obvious.

Thanks, Steve

3min Chart for the trades

OK now we have established the larger degree trend, and how it changed from down to up on the 15min chart, let’s take a look at the 3min chart.

As you can see, there were a few setups yesterday and I have highlighted the results, including how the TS3 buy early in the day should have been avoided as it was “against” the down trend at the time

Thanks and I hope this has been a good example of how to use the larger degree trend on the 15min chart to then get the trades ion your shorter term 3 and 5min Charts.

Steve

As usual – larger degree trend first

Hi Everybody,

Let’s take a look at the 15min NQ chart, where we can see a perfect example yesterday of how to use the 15min Chart for the larger degree trend....

First the 15min NQ hit DP resistance, this set the trend (on the 3 and 5min Charts) to down, until we reached 15min DP support. This then changed the trend to up.

So bearing this in mind, let’s see what trades there were on the 3min chart

Thanks, Steve

Perfect Wave 5 low

But for me the best setup was on the 3min Russell Index. As you can see from the chart, we had a “perfect and ideal” 5-wave pattern, with the low right at the Typical Wave 5 WPT. Then, to add more weight, we had a high volume (VSA) spike at the low. To me, this was the best and most obvious setup yesterday.....

The TF rallied nicely to reach the DP from the prior Wave 4 high, exactly as outlined in the Trading Course :)

The result was a nice +3R Profit (ignoring slippage and commission)

Thanks, Steve

3min ES Chart

The 3min ES chart gave us a few buying opportunities. The first of which would have been a “break-even” trade, as it exceeded the 100% initial risk level. The second would have been a -1R loss. But then there was a DP buy that nailed the low perfectly.............

The ES then rallied nicely to bank +2.1R Profit at the DP target (ignoring slippage and commission). This was using the Standard Trade Management Guidelines.

Thanks, Steve

Larger degree trend

Hi Everybody,

As usual, let’s start with the larger degree trend by looking at the 15min ES Chart.

I admit, this picture is less than perfectly clear as the last DP has been breached and the 15min ES was pushing higher. This would suggest the trend was up.

As such, we should be looking for buys on the 3 and 5min Charts, but because the picture was less than “perfect” I would suggest a little caution, by using the 100% initial risk guideline.

Thanks, Steve