A perfect 5-wave Elliott pattern

As you al know, MTPredictor is far far far more than just the automatic setups. One of the more Advanced modules in the software is the Elliott Wave module.

As you can see, this nailed the rally on the 3min NQ yesterday with the two corrective lows unfolding right at their respective WPT support zones. Then the high came in right at the Typical Wave 5 WPT – this nailed the high absolutely perfectly !

Remember, only use Elliott Wave when the pattern is “clear and clean”, but when it is, MTPredictor will help you nail the turns perfectly. This is a part of the software that few Standard Traders ever see, but as you can see it is amazingly powerful. I do find it very sad that so few traders are willing to take the time and make the effort to learn how to trade better, because they are missing out on so much, particularly on how powerful MTPredictor really is.....

Thanks, Steve

TS3 buy on the Russell

As the trend was up yesterday, there were some other long trades to consider that unfolded later in the day. The best of these was on the 3min Russell Index.

As you can see, this returned a nice +2.5R Profit (ignoring slippage and commission). Again the DP target was used as the STF was weak. This is the Standard trade management guidelines....

A point to note is that because we have had some tricky and narrow range and choppy days recently, The Cyclical Nature of Trading would suggest that some good and much bigger trades are getting closer now.....

Thanks, Steve

Nails high and low of the day !

Hi Everybody,

Although it was a narrow range day on the ES yesterday, MTPredictor managed to nail both the high and low of the day for you !

The larger degree trend was up (not shown) so the TS3 buy early in the day was a good one to consider. This nailed the low of the day for you. The ES then rallied (albeit slowly) to reach the first projected profit target where a +2.3R Profit was available (ignoring slippage and commission). The WPT target was used by Standard Traders as the STF was “weak”. This nailed the high of the day for you !

So there you have it, MTPredictor nailed both the high and low of the day – brilliant :)

Thanks, Steve

Now for the Advanced Stuff

OK, Did any of you notice how I labelled a “minor ABC” high just after the TS3 buy in the morning ? And do you remember how I said that we should be looking for sell setups, as the larger degree trend was down ? Well, this is where the Advanced Trader among you could have used this minor Wave C high for a new short trade.

The pattern can be seen slightly easier by dropping down to the 2min chart. I do not suggest doing this all the time, but only when you have a clear idea of the larger degree picture and you are happy working with Elliott Wave Patterns.

The result was a nice +4.8R Profit (ignoring slippage and commission) as the NQ mad a minor 5-waev decline into a high volume (VSA) spike. This actually nailed the low of the day for you !

As you can see, once you become more experienced, you will be able to uncover so many more potential trade setups

Thanks, Steve

3min NQ Chart

OK, now we have established that the 15min larger degree trend was down, we should be focusing on sell setups, so the TS3 buy that unfolded in the morning should have been avoided. The only sell that Standard Traders should have considered was the sell in the afternoon.

The NQ did decline slightly from this TS3 sell, but only in an ABC pattern. Locking in a small Profit of +1R (ignoring slippage and commission)at the Wave C low was about the best you could have done.

Not all days have big winners, we should all know that by now, this is because of the “Cyclical Nature of Trading”. I have written a lot on this before, where profits, quiet times and losses goes though cycles. We have had some great trades last week, so it is no surprise to find us in the quiet period of the cycle at the moment. This is just how markets unfold in the real-world....

Thanks

Steve

Larger degree trend first

Hi Everybody,

As usual, let’s start with the later degree trend by looking at the 15min NQ Chart.

As we can see, the 15min NQ found resistance at the DP (which nailed the high of the day) and a decline then followed. This set the trend to down.

Now let’s look at the shorter term 3 and 5min charts to see what setups there were

Thanks

Steve

Big Profits and small losses

Yesterday was a very good example of how it is possible to have a number of losses and still make money overall. Here we had 4 short trades, two of which were losses and 2 profits. BUT because the losses were kept small at just -1R each and the Profits were larger than these at +2.4R and +3.4R, money was made overall, +2.4 -1 -1 +3.4 = +3.8R Profit overall.....

This is such an important point and it still amazes me why so many amateur traders still cannot understand this, you do not need to have a high % of winning trades to make money. What is important is keeping the inevitable losses small and Profits large.

Yesterday on the NQ was a perfect example of this, 2 losses and 2 profits and still you came out with a good profit at the end of the day.

Thanks, Steve