3min ES – TS3 sell

OK, now onto a perfect (and standard) TS3 sell that unfolded later in the day.

As you can see, this nailed the end of the Wave C correction just before a continued decline. The STF strength band was exceeded so we swap to the ATR Stop. The result was a nice +5.9R Profit (ignoring slippage and commission).

As this was a standard and automatic setup with the standard trade management guidelines, all MTPredictor users should have caught this one :-)

Thanks

Steve

3min ES – Gap Open play

Hi Everybody,

Wow, the good trades just keep on coming. But seriously, this is a direct response of the cyclical nature of trading and because we had such a few hard days at the end of last week. The cycle has now turned and we are in the 3rd straight good day on the US e-minis.

I would like start today with one for the Advanced Traders among you, and was call I made in my Sales Webinar yesterday. This was a “Gap open” play. I have shown this before, where we look for a reversal at the DP just after a gap open. The target is then the opposing DP level.

As you can see, the ES behaved perfectly gapping up into the DP, then reversing, entering a new short trade, then promptly falling into the opposing DP for a nice +3.3R Profit (ignoring slippage and commission) – perfect, especially as this was called “at the time” in my webinar.

Thanks

Steve

5min ES part 2

OK, now for the icing on the cake for the Advanced Traders among you.

In the last post we saw how profits were taken at the first projected profit target, however, when we look at the Elliott Wave pattern of the rally during the TS3 long trade, we can see how this unfolded as a 5-wave advance. With the high right at the maximum Wave 5 WPT, this was another reason for the Advanced Traders among you to just bank profits MIT. Because not only were you at the normal TS3 profit target but at the maximum area where a wave 5 was likely to end. So no wonder a high was made there.

This nailed the high of the day for you perfectly.

Thanks

Steve

5min ES again

Hi Everybody,

Now do you all see why I stress the cyclical nature of trading so much ? After a few bad days last week, this week has been brilliant with +9R Profit on the 5min ES on Monday and now another brilliant trade for +3.7R Profit yesterday, again, on the 5min ES. This is what all amateurs traders must know, learn and then understand, trading goes in cycles, there will be quiet and bad times, but these will then be followed by the good and profitable times. We are seeing this yet again in the last few days...

Anyway, back to the nice TS3 buy on the 5min ES yesterday, As you can see form the chart to the right, this had you long from the low of the day. The ES then rallied to make the first projected profit target where +3.7R Profit was available. This was the high of the day. Long form the low of the day, the bank profits at the high of the day – that is a day traders dream

Thanks

Steve

5min ES – DP buy Part 2

OK, I know, I have said that I don’t like DP setup unless they are at larger degree DP support/resistance. However there is one exception, and that is when the DP comes at the end of a clear clean 5-wave swing.

This is exactly what happened in this example, please see the chart to the right, where you can see the Elliott Wave module in MTPredictor found a 5 wave decline. Notice how the low was also at the minimum Wave 5 WPT. We also had STF and Stochastic divergence at the low as well.

This is what made this DP buy a good one to consider as it was also at the end of a good looking 5-wave sequence and was supported by good divergences.

Thanks, Steve

5min ES – DP buy

Hi Everybody

Isn’t the cyclical nature of trading amazing ! I said yesterday that we were now overdue for a good day on the US e-minis and then pops up a +9R Profit, amazing ! Seriously though, this is why the newer traders among you need to know about the cyclical nature of trading so you do not get down during the quiets times, otherwise you will miss great trades like this one....................

So let’s take a look at the 5min ES chart. As you can see, this automatic DP buy nailed the very bar of the low, long form the low of the day is always nice for a day trader ! Then, the ES rallied straight though the initial profit target to reach the next DP level. This is where experience comes in...........What is the common sense thing to do if you are at DP resistance and the end of the day is approaching and you are sitting on +9R Profit. Bank it, or use the ATRStop which does not have a lot of time to run and is only on +5.6R Profit ? Personally, +9R Profit is huge and should be protected ( at least some of it, if not all of it) especially as the end of the day is approaching.

Again, this is where experience come in and a good trader will always win out over a purely mechanical approach, this is the reason I put so much effort into these posts to teach you how to handle situations like these. Either way, the 5min ES yesterday as a very nice profit

Thanks, Steve

Back now...........

Hi Everybody,

It is good to be back, and looking at the charts over the latter part of last week it looks I did not miss much. Quite frankly, the markets have been horrible over the last few days.

Having said that, there have been a few nice trades over the last few days, like the TS3 buy on Thursday in the Russell Index that made +6R Profit (ignoring slippage and commission. But overall, it has been a very hard few days.

As we all know, this is due to the cyclical nature of trading that we all should start to becoming familiar with now. Which means after a few hard days we are defiantly overdue for a few good days very soon now. Many new traders find times like this hard, because they simply do not understand that trading can be hard and frustrating at times. So “welcome to the real-world”, trading does go though cycles and yes it is hard sometimes .........

Thanks

Steve