YM 3min

The best potential sell yesterday was form a “manual” DP high on the 3min YM. As this was using manual analysis it should be considered and Advanced setup. AS you can see this only made a small Profit but a profit all the same.

This does bring up the question on what professional traders should expect for their Profits and losses, so please read this PDF Click here that shows how profits and losses typically unfold in the real world. It is interesting that amateur expect big Profits every day, but the world simply does not work like that

Steve

ES 3min

Hi Everybody

Well yesterday was an interesting day. The 15min ES put in a high at the DP as I anticipated before the open yesterday so I was (personally) looking for sells as I had considered (at the time) that the 15min trend had turned down. So I (personally) would have avoided the buys that came up on the 3min ES yesterday, The first a TS1 sell that would have been stopped out for a -1R Loss, but was not a very good looking setup.

The one that did interest me, because the pattern was so nice, was the TS3 buy at 13:30EST, but as I have already said, this was against what was perceived (at the time) as a new 15min down trend, as because we have to be consistent as traders, it was best to pass on this one.

The only group of traders who could have considered it were the Advanced Traders, but then stops should have been moved to break-even quickly. Interestingly after all the discussions yesterday, “if” advanced traders had taken the two sell on the 3min NQ on Friday for a -2R loss, then the Profit on this one TS3 long would have more than made up for these being a +2.5R Profit (ignoring slippage and commission). This just goes to show that however you choose to trade, consistency is necessary, even after a few losing trades, as the winners will be just round the corner.....

Thanks, and a interesting day yesterday......

Steve

15min ES chart before the open

Hi Everybody,

What a difference a day makes....

I am not going to make any comments on this chart as the markets have not opened yet, so we don’t know whether this DP resistance on the 15min ES will hold or not.

But it gives you all something to look at today :-)

Thanks, Steve

Daily S&P Chart

Hi Everybody,

I would like to update you on the current position of the Daily S&P Chart.

As you can see we are now at the first profit target from the recent TS4 buy (off the Jul 8 low) and we are also at a Major DP resistance zone............. So I would not be at all surprised to see at least a minor high unfold at this level.

Thanks, Steve

Question on the 3min NQ and Larger Degree trend – Part 2

Here is the 15min NQ chart, as you can see the trend is clearly up.

Remember, for you to swap direction on the larger degree trend you have to have evidence that the larger degree chart is putting a high in (Wave 5 or DP etc etc), but so far this has not happened......

Thanks, and I hope this helps ? Steve

Question on the 3min NQ and Larger Degree trend

Hi Everybody

Today I would like to look at the 3min NQ and look particular at how we define the “larger degree” trend, as I know there has been some confusion recently.

At the basic level we use the colour of the STF on the 3min Chart itself to define the main trend for that chart and that time frame. Yes, the STF does look at a slightly longer trend than 3min but I think the terminology of “larger degree” needs to be clarified. So at the base level you can use just the STF colour, but I strongly recommend that you “also” look at the larger degree chart, in this case the 15min Chart. I outlined this in the “Day Trading” Chapter in Part 2 of the Trading Course, but it is worth a re-cap here.

So looking at the 15min Chart on Friday, you can clearly see that the trend was UP. There were no DP resistance areas in play and the 15min STF was blue as well as the 15min Chart making higher swing highs and higher swing lows. In other words the 15min Chart was trending UP. So bearing this in mind, should you have considered the TS3 sells earlier in the day ?

As I always say, it is better trading “with” the larger degree trend, so you should have passed on these (Even the Advanced traders as there were no reasons to anticipate a decline on Friday).

So this is what I mean by the “larger degree” trend, it is the trend on the larger degree time frame chart, which is the 15min Chart for 3 and 5min trades.

Thanks, and I hope this helps ? Steve

S&P – Daily Chart Update

Hi Everybody,

I just wanted to update you all on the current TS4 long in the S&P form the Jul 8 low.

As you can see, this nailed the very low of Jul 8, and since then the S&P has rallied strongly. We have now reached the first profit target, so should start to protect any longs.

Thanks

Steve