As you can see, the 15min YM made a low at the minimum Wave 5 WPT, so any further downside movement as unlikely, in fact a rally to the DP (form the prior wave 4 high) was “more likely”. So any 3 and 5min sells were “against” the new 15min up trend.
For newer and less experienced traders, and especially when we know we are in the harder part of the trading cycle any trades that “against” the larger degree trend should be avoided. For the more experienced trader, they can use the 100% initial risk level to protect trades earlier. Either way, any sells yesterday were against the new 15min up trend off the Wave 5 low, so caution should have been used.
I agree, the rally off the lows was very strained, as the markets just drifted sideways yesterday. But then this was to be expected because of the position of the trading cycle we are currently in.
Many new traders find this difficult to understand, they seem to “expect” markets to unfold perfectly every day, this simply does not happen in the real world. Trading is not easy, it requires patience and discipline and has days (like yesterday) that are frustrating. The sooner you learn to deal with days like this the sooner you can make the jump to becoming a professional trader....
Thanks
Steve
For newer and less experienced traders, and especially when we know we are in the harder part of the trading cycle any trades that “against” the larger degree trend should be avoided. For the more experienced trader, they can use the 100% initial risk level to protect trades earlier. Either way, any sells yesterday were against the new 15min up trend off the Wave 5 low, so caution should have been used.
I agree, the rally off the lows was very strained, as the markets just drifted sideways yesterday. But then this was to be expected because of the position of the trading cycle we are currently in.
Many new traders find this difficult to understand, they seem to “expect” markets to unfold perfectly every day, this simply does not happen in the real world. Trading is not easy, it requires patience and discipline and has days (like yesterday) that are frustrating. The sooner you learn to deal with days like this the sooner you can make the jump to becoming a professional trader....
Thanks
Steve
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