Trades on the 3min Chart

OK, let’s now look at the 3min YM chart.

As I have already said, we had two automatic Buy setups, but can you see the difference, now you have seen the “larger degree trend” on the 15min Chart ? The first (TS3 buy) was “with” the up trend, at the time, into the 15min DP. But (and this is important), the second (TS4 buy) was “against” a new down trend as the 15min Chart found resistance at the 15min DP.

So the first trade was a good one to consider, while the second was best avoided.......

This has been a good example for you all to see how to use the 15in chart for the “larger degree trend”....

Thanks, Steve

15min Trend on YM

Hi Everybody,

The YM yesterday was a great example of how the 15min trend turned from up to down as the 15min chart hit DP resistance. This can be clearly seen on the chart to the right.

This had a direct impact on the 3min chart as we had two buy setups, but the first was “with” the 15min up trend into the 15min DP in the morning, the second was “against a new down trend as the 15 YM declined off DP resistance.

Let’s take a closer look in the next post....

Thanks, Steve

Pyramiding ?

OK, we already know that we should have avoided the sells, but what of the TS3 buy that came up later in the day ? The problem, is that you were already long off the DP low, so is there anything you can do ?

Adding to positions is called Pyramiding, and is not something I talk about a lot as it is an Advanced technique. But what you can do, is when you have confidence in the larger degree trend, then Advanced Traders can consider taking “additional” positions in the same direction. BUT, always make sure that you have protective stops locking in at least a small Profit on your first position if you consider this.

The Result was a nice +5.1R Profit (ignoring slippage and commission) at the Typical Wave 3 WPT. This was uses over the ATRStop as it was so close to the end of the trading day.

The result was an “additional +5.1R Profit to add to your +3.9R from your first trade, making it a +9R day on the 3min NQ yesterday, which was brilliant.

Thanks, Steve

DP Buy nails the low of the day....

OK, now we know that we should be looking for Buys, we can see how we got a DP buy that nailed the very low of the day for you !

Although the rally off the lows did not reach the first projected target, there was a nice +3.9R Profit (ignoring slippage and commission) available on the close.

Thanks, Steve

As usual, first the larger degree trend....

Hi Everybody,

The NQ gave a great example of this yesterday. If you look at the chart, you can see, how we got a TS3 buy yesterday on the 15min Chart, this then set the 15 trend as UP for the rest of the day.

As such, you should have been looking for Buys (and ignoring sells) on your shorter-term 3 and 5min Charts.

So now, let’s take a look at the 3min NQ and see what we get.....

Thanks, Steve

TS3 Buy on the 3min ES

OK, Now we have established that we should be looking for buy setups on the shorter term 3 and 5minn Charts, what unfolded on Friday ?

Well, we did get a TS3 buy in the afternoon, please see chart. But, the market only rallied slightly. I hope you have all read the Trading Course ? Because if you have, the you will all know that the most likely place a trade can fail (if it is going to fail) is at the DP from the prior Wave b swing. And that is exactly what happened here.

You all have to remember, that we are still in the harder part of the cycle. You should all know about the “Cyclical Nature of Trading” by now, so we should not anticipate big trades at the moment these will come back soon...

Thanks, Steve

First, the Larger Degree trend

Hi Everybody....

As usual, let’s start by looking at the “larger degree” trend on the 15min ES Chart. This will then set our “position direction” for the actual trades on the shorter-term 3 and 5min Charts.

As you can see, the 15min ES made a low right at DP support on Friday, this then set the trend to up.......

Thanks, Steve