Monday, 20 April 2009


OK, now let’s move down to the shorter-term chart, in this case the 60min

Here we can see we had a lovely manual DP sell (that also coincided with the larger degree DP resistance). But the case in point is that you are now short, BUT what should you do when an opposing (TS3 buy) setup appears? In the ES example below I suggested that you could take signals against the larger degree trend but only if you protected them quicker than normal by raising the initial protective stop quicker. BUT what if you are already in a profitable trade that is already with the larger degree trend.

Well, it makes no sense to swap a strong position (with the larger degree tend) in favour of a weaker trade (against the larger degree trend). So in this case I would suggest sticking with your existing trade and passing on the opposing TS3 buy (in this example).

Steve