Adobe – update

Hi Everybody,

Just a quick update on the US Stock, Adobe, that I looked at a few days ago.

As you can see Adobe is still moving higher slightly and currently sitting on an open Profit of approx +8R (ignoring slippage and commission).

Let’s see how the next few days unfold.....

Steve

And for the Advanced Traders....

There was also added conformation from Stochastic divergence and a high volume (VSA) bar unfolding at this same TS4 low as well. Both these added extra weight to the standard TS4 buy setups for the Advanced Traders among you.

Thanks, Steve

Don’t trade too short a time frame !

Hi Everybody,

Yesterday was a perfect example of why I tell you all not to trade too short a time frame. If you only look at the really short time frames then you can lose sight of the larger degree picture. For example you could have been trying to “top pick” as the strong rally yesterday afternoon unfolded. BUT........ if you have been looking at a longer 5min chart then you would have nailed the low of the day on the YM and then rode the strong rally up all day.........

Please see the chart, as you can see a standard and automatic TS4 buy on the 5min YM had you long form the low of the day ! The STF was blue and the larger degree trend was still up............ The YM rallied strongly into the close for a massive +9R Profit (ignoring slippage and commission) but the point is that this was an easy trade on the 5min chart, that could have been missed buy getting “too close” to the market with too short a time frame chart.

Thanks, Steve

YM 3min – to sell or not?

OK, now we have decided that the larger degree trend was defiantly UP yesterday, how should you view the sells that came up on the 3min Chart. Please note that the STF on the 3min chart itself was also blue, giving yet more indication of a strong UP trend.

I have said before, newer users should not go against the larger degree trend, so for them, they should not have taken these sell. But what of the more advanced trader? Well, I normally only even consider going against the larger degree trend if I have reasons that a counter trend move may unfold. For example at 15min DP etc etc. And yesterday there was no reason at all that I see could see anything other than a strong UP trend. So even the Advanced Traders should have been avoiding the shorts and looking for long trades yesterday.

Remember only go against the larger degree trend if you have a good reason, then if you do, protect yourself quickly....

Steve

YM 15min – larger degree trend

Hi Everybody,

I received a few questions on the sells on the 3min YM yesterday and how they “fitted in” to the larger degree trend.

As usual, you should start your day by looking at the larger degree trend, and on the US e-minis this is the 15min Chart. As you can see, the STF is blue, indicating a strong UP trend, and (also) the 15min YM was NOT at DP resistance. So as far as the 15min Chart was concerned yesterday the larger degree trend was defiantly UP

OK, now let’s look at th3 3min chart in the next post

Steve

ADOBE – US Stock

Hi Everybody,

Just a quickly update on Adobe, a US Stocks that I mentioned a few days ago on the Blog.

As you can see Adobe has just reached its first Profit target after the TS3 Buy on July 8. With the Profit at this level a massive +7R, this is turning out to be a very nice trade indeed......

Thanks

Steve

3min YM Chart

Hi Everybody,

Friday was an interesting day with some sells as well as buys on the short-term US Indicates. A good example is on the 3min YM, see chart.

The easiest was the TS4 buy later in the day, as that went straight up into the close for a nice +2.4R Profit (ignoring slippage and commission). I also like how the setup unfolded on a VSA high volume spike as well....

The TS3 sell earlier in the day was slightly trickier on the trade management, with the question being whether to use the 100% initial risk break-even guideline. So at worst case this would have been a -1R loss, which is smaller than the +2.4R Profit on the TS4 buy (above). Small losses and Big profits – the key to successful trading....

Also notice how the DP nailed the high of the day for you as well :-)

Thanks

Steve