VSA on 5min Dax

Hi Everybody,

One for the Advanced Traders amoung you....

The trade that I was watching closely yesterday was a long on the 5min DAX from a VSA setup late in the morning. If you look at the chart you can see how we had an automatic TS3 sell, but the decline from that high only unfolded in 3 swings (ABC). What sparked my interest was how the Wave C low unfolded right on at the typical Wave C WPT on a high volume spike bar (VSA). We also had stochastic divergence (not shown) at the time. This stopped the decline dead and indicated a low was forming.

The 5min DAX than rallied strongly. In the absence of any clear Elliott Wave patterns the ATRStop was used to manage the trade. The result was a nice +5.8R Profit.

A nice example of our VSA, high volume spike trade.

Thanks

Steve

FOREX – GBPUSD 60min (Part 2)

Now compare the example below to this one on the same GBPUSD 60min Chart for the automatic DP buy just a few days earlier, where we had an initial R/R of 2:5, i.e. just above our 2:1 minimum. Yes, we all know that this does not “guarantee” that the profits will always be larger, because nobody knows the future. But at least it gives you a good starting point.

Thanks

Steve

FOREX – GBPUSD 60min (Part 1)

Hi Everybody,

Today I thought I would start with a training exercise on Risk/Reward, and making sure that you check the initial Risk/Reward at the first profit target.

If you look at the 60-min Chart of the GBPUSD you can see how we looked to have got a nice Wave 5 high that unfolded at both the minimum Wave 5 WPT and DP resistance. We also had nice oscillator divergence at the high at well. So it a first glance it did look like it was a good setup. But how good was it in term of Risk/Reward.

If you remember, we like to have trades that (on average) produce profits that are much larger than the losses. One was we do that is to try and only consider trades that start off with a possible 2:1 Risk Reward (or greater) at the first target. In this example the R/R at the first target was only 1.9:1. Some may say that is close enough, but at least with MTPredictor you have the tools to quickly and easily check this to then make an informed decision.

Thanks

Steve

Loses – they do happen !

Hi Everybody,

I just wanted to share with you all a nice and what was “at the time” a valid “manual” advanced trade, which did not unfold as anticipated. Again there are too many software soles people and so called Gurus who never show or even mention loses. I hope you should all know that loses can and do unfold, even when using expert and advanced analysis.

So does this mean that the analysis was wrong? Of course not, your aim on the losers is to control the loss and keep it small. As long as you do that you are doing your job correctly. This is why I wanted to post this losing example, to show and remind you all that losses can and do unfold. But your job as a trader is to keep them small, at just -1R in this example.

Thanks

Steve

Elliott Wave module

Hi everybody,

We also have some more tools and modules available in the software for the more Advanced traders among you, like the Elliott Wave module. Here you can see a wave 5 high (that reversed right at the typical Wave 5 WPT), that was also on a high volume (VSA) bar that unfolded early afternoon. The 3min YM then declined into the DP (form the prior wave 4 low) absolutely perfectly. This a an advanced trade that is covered on Part 2 of the Trading Course.

As you can see, MTPredictor has the tools and modules to help you find and then evaluate trade setups, no matter whether you are a new or more experienced trader.....

Steve

PS, The Elliott Wave module should be considered an advanced tool so ashould only be used by people who have studied the Trading Course

High volume spike analysis (VSA)

High volume spike analysis (VSA)

Hi everybody,

MTPredictor is not just a black box to be followed blindly, we have far more that will help you become better traders, for example the new VSA, volume spike analysis, bars in MTP v6.0. As you can see, both the DP buys yesterday unfolded with these.

For more info on this please click here

Steve

OK, what of the larger degree, 15min trend?

As you can see, the 15min ES declined into DP support and then made a low and rallied, so the DP nailed the market perfectly yesterday. This meant that the first 3min DP buy of the day was just short of the 15min DP support, but the second one was right in the 15min DP, so was perfect. Then, the later TS4 sell was “against” the new 15min up trend so should have been avoided.

DP’s are always tricky, that is why we will be reclassifying them soon as more “Advanced trades”. The best way to use DP’s is when they align perfectly with the larger degree 15min Chart. As we have seen here, the first 3min DP sell was not ideal, as it was short of the 15min support, but the second one was absolutely perfect. Therefore if you are an advanced trader you should have been quicker to raise your initial protect stop on the less than ideal setup, while been more liberal with the ideal one. In this way the Advanced trader could have avoided the -1R loss on the first DP buy with a break-even trade.

This is good advice for the automatic DP setup, be cautious about this unless you are confident of the larger degree position. That is why we will be reclassifying the automatic DP as an Advanced setup as it requires some more thought and experience.

Steve