One for the Advanced Traders amoung you....
The trade that I was watching closely yesterday was a long on the 5min DAX from a VSA setup late in the morning. If you look at the chart you can see how we had an automatic TS3 sell, but the decline from that high only unfolded in 3 swings (ABC). What sparked my interest was how the Wave C low unfolded right on at the typical Wave C WPT on a high volume spike bar (VSA). We also had stochastic divergence (not shown) at the time. This stopped the decline dead and indicated a low was forming.
The 5min DAX than rallied strongly. In the absence of any clear Elliott Wave patterns the ATRStop was used to manage the trade. The result was a nice +5.8R Profit.
A nice example of our VSA, high volume spike trade.
Thanks
Steve
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