Larger degree trend – example 2

Now let’s look at the 3min Chart...........

Can you all see that because the 15min (larger degree trend) was UP, the TS1 sell on this 3min chart was “against” this up trend so should not have been taken.......... As you can see, this avoided an otherwise loss.

Sometimes knowing when “not” to take a trade is more important that taking a trade.....

Steve

PS, notice how the VSA spike, at DP support, nailed the actual low of the day for you !! Then how the Dax rallied into the opposing DP – absolutely perfect :)

Larger degree trend – example 1

Hi Everybody,

Here is a perfect example, of when you should NOT take an automatic setup.

As you can see, the 15min trend on the Dax this morning was UP from a DP low, into a DP high.................. So when the “larger degree” tend is up, what should you do if you get a short term (3 and 5min) automatic sell ?

Steve

Cyclical Nature of Trading

Hi Everybody.

Understanding how markets unfold in the “real world” is absolutely vital if you intend to become a professional trader. There are too many amateurs who just look at the markets for a few days and then “expect” to make big profits each and every day. This simply does not happen.

Yes, there will be easy times, when good trades are frequent and easy to spot, because the pattern is clear. And this is what most companies market on. BUT, then there are harder times, when the pattern is less clear. This is what most companies don’t tell you about. But times like this can and do happen. The trick is not to get frustrated and accept that losses will unfold, but you keep them small, and that there will be quiet times, when the pattern is unclear.

Knowing and (more importantly) accepting this is vital, because only then will you understand that when times are hard, you are getting closer (as the cycle moves round) to getting back to some big profitable trades again......

This is true for all markets and all time frames....

Thanks, Steve

DP and VSA nails ES low

For the more Advanced Traders among you................

Here you can see how the 3min ES made a perfect high volume (VSA) spike at DP support to nail the low of the day for you. The ES then made a 5-wave rally off the low, where a nice +1.7R Profit (ignoring slippage and commission) was available.

Add this Profit to the other good trades yesterday and even though it was a tricky day on the larger degree trend, carful use of Position Sizing and risk control would have kept the losses small and allowed you to bank some much larger profits overall.....

Thanks

Steve

YM getting in on the act

The NQ was not the only market giving some nice short trade profits yesterday.

The 3min YM also had a nice short trade, into the low of the day for a nice +3.7R Profit (ignoring slippage and commission)

Thanks

Steve

3min NQ trades

OK, now we know that the trend was down into early afternoon, we can see that there were three sells on the 3min NQ, Two losses and one a Profit. But this is where Position Sizing comes in. Even with more losses than Profit, you come out on top overall. This is why I keep on saying why it is so important to keep your losses small and Profits large.

This is the real key to successful trading – small losses and large Profits

Thanks

Steve

Tricky larger degree trend...

Hi Everybody,

As we all know, sometimes the pattern is not as obvious or clear as we all would like, and yesterday was a day like that. The larger degree trend was down until early afternoon when the NQ and TF (Russell Index) made lows at Wave 3 WPT levels. This then turned the larger degree trend to up for the rest of the day...........

Thanks

Steve