FOREX – GBPUSD Daily Chart

Hi Everybody

For the Advanced Traders.........

I wanted to take a closer look at a daily Chart of the GBPUSD, as this is a very good example of when to look to the Wave 3 WPT’s for targets rather than the closer Wave C WPT’s.

As outlined in the Trading Course, this is my favourite setup because the ABC (TS3) setups comes as the “first correction” from the “first move” off an “important high or low”. In other words, this is more likely to be a Wave (2) in Elliott Wave terms. And what usually follows a Wave (2) – exactly, a strong Wave (3) type swing. As you can see, this is exactly what we have with the GBP.

As the STF strength band was exceeded as the Typical Wave 3 WPT was reached, the ATRStop can be used to carry on the strong trend.

Currently sitting on +10R Open Profit (ignoring slippage and commission)

Thanks, Steve

FTSE 3min TS1 sell – follow up

Hi Everybody,

Here is how this TS1 short trade ended up – a very nice +7R Profit (ignoring slippage and commission).

What was interesting for me, was how the low came in at our Typical Wave 3 WPT, which is what we would normally anticipate as a TS1 sell is usually a Wave (2) correction, so seeing a Wave (3) unfold after this is normal.

So even though we used the ATRStop, the end result (in Profit terms) was about the same as just using the Typical Wave 3 WPT target

Thanks

Steve

FTSE 3min TS1 sell

Hi Everybody,

A beautiful TS1 sell on the 3min FTSE that is currently underway............ (no STF filter as against a blue STF)

Standard trade management: As the STF Strength Band is exceeded, swap to the ATRStop for trade management.

Trade still open and currently on +8R Profit (ignoring slippage and commission)

So let’s see how this unfolds...........

Steve

NQ – 3min Chart Part 4

For the Advanced Traders among you.

As you can see, the NQ did make a decline into the DP support zone at 12:21EST, BUT the second decline into this zone, that unfolded at a minor DP support with a blue (buy), was the one that interested me the most. The reason for this was that not only did we have double DP support at this level (12:54EST) but it was also on Stochastic divergence. As such, this represented a good buying opportunity.

The trade could have been managed using the ATRStop which would have results in a nice +8R Profit (ignoring slippage and commission), Or the more Advanced Traders among you could have tightened stops as the larger degree DP resistance zone was reached for a +10R Profit (ignoring slippage and commission). Either way, this was a nice setups and one that has been covered in part 2 of the Trading Course.

Thanks, Steve

NQ – 3min Chart Part 3

For the Advanced Traders among you.

Answer: It is the DP from the Prior Wave (4) low

So form a Trading perspective, you should watch the market carefully as the market reaches this DP support zone to see if you have a potential Trade setup. The “ideal” is when the market makes a 3-swing ABC decline into this DP support zone, but other potential setups include minor DP support at oscillator divergence or even a VSA high volume spike.

So let’s see what happens....

Thanks

Steve

NQ – 3min Chart Part 2

For the Advanced Traders among you.

As the chart says: What should the Advanced Traders among you “anticipate” should happen after a Wave 5 swing is completed ? But more importantly, where is the anticipated support zone following a Wave 5 high (Hint: This is covered in Part 2 of the Trading Course)

Thanks

Steve

NQ – 3min Chart

Hi Everybody,

In today’s posts I would like to take a look at just the 3min NQ: Where yesterday was an interesting day that started with a losing TS3 sell.

As all professional traders know, loses can and do unfold, but the trick is keeping them small at just -1R.

But, what unfolded a little later in the day is what really peaked my interest

Thanks

Steve