Now for the all the additional info

OK, so far you have seen this trade from the basic and automatic setups only perspective, then I added in some advanced trade management for the advanced traders among you. BUT I want finally to add in all the other “supporting” factors that made this setup a real gimme :-)

As you can see, not only was this setup on a blue STF (uptrend) but the Wave C low unfolded right at the Typical Wave C WPT after a sharp wide range bar down that was a high volume (VSA) bar. And all of this on Stochastic divergence. As you can see, everything was all coming together to highlight this as a real beauty of a trade.......

As you can see, MTPredictor has all the tolls, you need whatever level you are to help uncover and then mange great trade setups

Thanks

Steve

Now for the Advanced traders among you

As you can see form the chart to the right, the ABC correction (TS3 buy setup) came after a nice 5-wave rally (found using the Elliott Wave module), so from this advanced traders should have been anticipating a continued rally higher. This is exactly what unfolded.

So what about targets ? Well, for this the advanced trader would have used the WPT module and then projected up using the whole of the prior 5 wave advance. The initial target would have been the minimum Wave C WPT.

This would have resulted in a nice +4R Profit approx (ignoring slippage and commission).

As you can see, the experienced and advanced trader could have doubled the profit from the standard trader, This is why I always say that it is worth the time and effort it takes to learn how to trade like an expert.

Steve

OK, now we have set the larger degree trend, it is time to move down to the 3 and 5min Charts to look for trades that fall “in the direction of” this larger degree up trend.

And that is exactly what we got later in the day as the 3min ES gave us a nice looking TS3 buy setup.

As the STF was weak (below the strength band) the trade was taken off at the first profit target, which resulted in a small +2.1R Profit. Although it was only a small profit, it was a profit, and that is OK.

This was using the Standard and basic trade management guidelines, the Expert and Advanced trader could have done better (next post)

Steve

PS. There was also a buy setup on the YM at the same time as this ES setup that would have made +3R approx at the first target.

ES trade on Tuesday

Hi Everybody,

As usual, let’s start with a look at the larger degree trend using the 15min Charts. If you look to the right you can see how the ES put a low in right at DP support on the 15min Chart , so the “larger degree” trend (on the 15min Chart) was up for shorter term trades on the 3 and 5min charts.

So now let’s move over to the 3min ES and see what unfolded....

Steve

Daily S&P update

Hi Everybody,

It was no wonder that the S&P (on the daily Chart) had a fall yesterday, because if you look at the chart on the right you can see how it had reached the level of two prior highs. This would have been a natural resistance area using standard technical analysis, so it should have been no surprise that we had a decline from this level yesterday

Thanks

Steve

3min Dax - Advanced trade management

Hi Everybody,

However, just because one market is going through a hard patch does not mean that they all are. Of you look at the chart on the right you can see how the 3min DAX gave us another beautiful trade this morning.

The TS3 buy nailed the low of the day. The markets then rallied into a DP sell setup where a +7.5R Profit was available.

For those of you are more advanced, you will have noted (no chart) that the larger degree 15-min picture was unclear as we got into this DP sell. In some of my posits below I suggested not “stopping and reversing” form a good trade into a weaker trade that was against the 15min chart. But what happens if you are sitting on a good profit (+7.5R) and the larger degree trend is unclear ? Well, common sense should kick in. In this example that meant protecting the larger +7.5R Profit and then avoiding the new DP sell.

As you can see, there is a lot of common sense in trading that can only be gained by experience, and that is what it means to be a good advanced trader.....

Thanks

Steve

As a PS, the 5min Chart had also made a nice 5-wave rally which was another raeson to anticipate a top and therefore look to portect the proift on the currnet long trade as the high came in

What to do on the Hard days

Hi Everybody,

If you ever read on the Internet that trading is easy and it is easy to make loads of money every day, then you know you are dealing with somebody that has no practical experience of trading themselves............. The fact of trading life is that there will be hard days, this is why I talked about the cyclical nature of trading only a few days ago, because all professional traders know that there will be hard days (or hard weeks or hard months) when making money will be virtually impossible. Please click here for my prior post on this.

As you can see form the chart to the right, yesterday was one of these days. With such small and choppy swings, it would have been almost impossible to make money yesterday.

So what should you do on days like this. Well, you should have been anticipating a hard day as we had such a brilliant week last week on the US e-minis, so your aim yesterday should have been to avoid all but the best looking setups (of which there were none) or be very very careful. In other words, during the hard part of the cycle your aim should be to just tread water and preserve your capital so you are then ready for when the profits come though again.

This is just a natural cycle of profits and losses that unfolds day after day, but few people talk about it because so few Gurus or software vendors are actually traders themselves.

Thanks

Steve