OK, so far I have suggested that the YM was better than the Russell at around 10:40EST on Friday. But what if you prefer to trade the automatic setups and are uncomfortable with manual analysis ?
Well, this is why we always suggest that you follow all 4 minis (ES, NQ, YM and TF), because (as we have seen) the YM (and the NQ) was making a possible high, so if this was correct then all 4 minis were likely to follow each other down. So with this in mind you could have considered the TS4 sell that unfolded on the 3min TF at the same time.
Yes, this was not ideal, because the 15min TF was not clear, but do you all see how because you were anticipating a decline on the market as a whole it was OK. Please note, if you are at all uncomfortable about this kind of “correlated markets” analysis, then don’t take the trades, This is more of an “educational piece” for the more Advanced Traders among you to show you what you can do with more experience. All I would say, is that if you are unsure about a trade, then bring the protective stop to break-even faster to protect the trade.
Thanks, Steve
Well, this is why we always suggest that you follow all 4 minis (ES, NQ, YM and TF), because (as we have seen) the YM (and the NQ) was making a possible high, so if this was correct then all 4 minis were likely to follow each other down. So with this in mind you could have considered the TS4 sell that unfolded on the 3min TF at the same time.
Yes, this was not ideal, because the 15min TF was not clear, but do you all see how because you were anticipating a decline on the market as a whole it was OK. Please note, if you are at all uncomfortable about this kind of “correlated markets” analysis, then don’t take the trades, This is more of an “educational piece” for the more Advanced Traders among you to show you what you can do with more experience. All I would say, is that if you are unsure about a trade, then bring the protective stop to break-even faster to protect the trade.
Thanks, Steve
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