Hi Everybody,
This is one for the Advanced Traders among you.
So far I have said that the automatic DP’s should be treated with caution, and as such should only be considered when they “line up” with the larger degree support/resistance zones. But there is one other place where the more experienced or Advanced trader can consider them, and that is after a clear 5-wave swing. Yes, “ideally” this should be a perfect Elliott 5-wave swing, but we have found that all it needs is 5 swings. If you look at the chart to the right, here was a good example yesterday on the 5min NQ.
What I also liked about this was that the sell unfolded in the first few bars of the day, so it was almost one of our “gap open” plays as well.
As you can see, the NQ then declined straight though the first DP target to then find support at the lower DP zone, where a nice +5.8R Profit (ignoring slippage and commission) was available.
Again, this is for the more Advanced traders among you, but it a good example of one of the places when the automatic DP’s can be considered.
Thanks, Steve
This is one for the Advanced Traders among you.
So far I have said that the automatic DP’s should be treated with caution, and as such should only be considered when they “line up” with the larger degree support/resistance zones. But there is one other place where the more experienced or Advanced trader can consider them, and that is after a clear 5-wave swing. Yes, “ideally” this should be a perfect Elliott 5-wave swing, but we have found that all it needs is 5 swings. If you look at the chart to the right, here was a good example yesterday on the 5min NQ.
What I also liked about this was that the sell unfolded in the first few bars of the day, so it was almost one of our “gap open” plays as well.
As you can see, the NQ then declined straight though the first DP target to then find support at the lower DP zone, where a nice +5.8R Profit (ignoring slippage and commission) was available.
Again, this is for the more Advanced traders among you, but it a good example of one of the places when the automatic DP’s can be considered.
Thanks, Steve
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