A brilliant start in Europe

Hi Everybody,

After the great end to the week last week in the USA (on the e-minis), Europe has continued the great run with a brilliant TS3 long trade that made a very nice +5R this morning on the 3min Dax (ignoring slippage and commission).

What a great start to the week :)

Thanks, Steve

3min TF

Then we had a nice ABC decline for a automatic TS3 buy that unfolded later in the day on the 3min Russell Index

Again, a standard trade, that was managed using the standard trade management guidelines, this time for a nice +4.4R Profit on the close (ignoring slippage and commission).

So, all in all, a good end to the week :)

Thanks, Steve

3min YM

Hi Everybody.

Well, in my last post I did say that we were now in the “good part” of the cycle in the Cyclical Nature of Trading, so another good day on Friday should have come as no surprise. We all have to remember about the Cyclical Nature of Trading, where Profits , losses and the quiet times all go in cycles, so the trick is keeping the losses small in the bad time so you are ready to maximise your profits in the good times, and this is where we are now.....

Both the YJ and Russell Index had good days, so let’s start with the YM

A standard trade, that was managed using the standard trade management guidelines for a nice +2.3R Profit (ignoring slippage and commission). There uis little else I can add, as the charts says it all

Thanks, Steve

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