Hi EverybodyToday I would like to look at the 3min NQ and look particular at how we define the “larger degree” trend, as I know there has been some confusion recently.
At the basic level we use the colour of the STF on the 3min Chart itself to define the main trend for that chart and that time frame. Yes, the STF does look at a slightly longer trend than 3min but I think the terminology of “larger degree” needs to be clarified. So at the base level you can use just the STF colour, but I strongly recommend that you “also” look at the larger degree chart, in this case the 15min Chart. I outlined this in the “Day Trading” Chapter in Part 2 of the Trading Course, but it is worth a re-cap here.
So looking at the 15min Chart on Friday, you can clearly see that the trend was UP. There were no DP resistance areas in play and the 15min STF was blue as well as the 15min Chart making higher swing highs and higher swing lows. In other words the 15min Chart was trending UP. So bearing this in mind, should you have considered the TS3 sells earlier in the day ?
As I always say, it is better trading “with” the larger degree trend, so you should have passed on these (Even the Advanced traders as there were no reasons to anticipate a decline on Friday).
So this is what I mean by the “larger degree” trend, it is the trend on the larger degree time frame chart, which is the 15min Chart for 3 and 5min trades.
Thanks, and I hope this helps ? Steve
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