Don’t forget the 5min Charts............

I said it a number of time before, but yesterday was a brilliant example of this – dint forget the 5min charts ! As there are very often brilliant trades in this time frames that do not appear on the 3min Charts.

As you can see, on this 5min TF Chart yesterday, there was a perfect TS3 sell, that got you short just before the sharp fall later in the day. As we have also see, this “was in the direction of” the larger degree down trend as well. So all in all, a perfect setup :-)

Standard Traders would have swapped to the ATRStop for trade management as the STF strength band was exceeded. This held the short trade into the close for a massive +12.8R Profit (ignoring slippage and commission) !

Massive trades like this do unfold, you just have to be ready to take them.... Especially when they were are perfect as this one !!

Thanks, Steve

As usual – Larger degree trend first

Hi Everybody,

Today I want to look at the Russell Index (TF), as usual, let’s start with the 15min Chart.

As you can see, the Russell made a high, right at DP resistance (this actually the very high of the day for you !). The Russell then declined to reach the opposing DP late in the afternoon.

As such, the 15min trend was down for all of the day..............

Thanks, Steve

DP nails the high of the day !

One for the Advanced Traders among you !

This is a trade that I know a lot of you caught, in that you saw the 15min highs coming in, but then moved down to the 3min chart for a new short trade entry.....

The exit would have been on the high volume (VSA) spike for a very nice +4.3R Profit (ignoring slippage and commission). In fact this had you short from the high of the day, into the low of the day – this is very best a day-trader could ask for

But this does show what is possible once you become more experienced.....

Thanks, Steve

3min NQ

OK, now we have established that the larger degree trend was down, how should you have handled the TS3 buy that came in on the 3min Chart later morning ?

Well, as it was “against” the larger degree 15min down trend, Standard Traders should have ignored the trade. Any Advanced Traders who liked the look of it should have proceeded with caution and used the 100% initial risk guideline.

Yes, there was a -1R loss on a TS3 short trade later in the day, so overall it was a tricky day on the NQ yesterday

Thanks, Steve

15min NQ

Hi Everybody,

As usual, let’s look at the 15min Charts for the “larger degree trend”, most of the US e-minis were making highs at 15min DP resistance yesterday, so this set the trend to down for the 3 and 5min Charts

See chart........

OK, now onto the 3 min NQ chart

Thanks, Steve

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