15min ES chart before the open

Hi Everybody,

What a difference a day makes....

I am not going to make any comments on this chart as the markets have not opened yet, so we don’t know whether this DP resistance on the 15min ES will hold or not.

But it gives you all something to look at today :-)

Thanks, Steve

Daily S&P Chart

Hi Everybody,

I would like to update you on the current position of the Daily S&P Chart.

As you can see we are now at the first profit target from the recent TS4 buy (off the Jul 8 low) and we are also at a Major DP resistance zone............. So I would not be at all surprised to see at least a minor high unfold at this level.

Thanks, Steve

Question on the 3min NQ and Larger Degree trend – Part 2

Here is the 15min NQ chart, as you can see the trend is clearly up.

Remember, for you to swap direction on the larger degree trend you have to have evidence that the larger degree chart is putting a high in (Wave 5 or DP etc etc), but so far this has not happened......

Thanks, and I hope this helps ? Steve

Question on the 3min NQ and Larger Degree trend

Hi Everybody

Today 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

S&P – Daily Chart Update

Hi Everybody,

I just wanted to update you all on the current TS4 long in the S&P form the Jul 8 low.

As you can see, this nailed the very low of Jul 8, and since then the S&P has rallied strongly. We have now reached the first profit target, so should start to protect any longs.

Thanks

Steve

YM on Jul 23 part 2

So the question was whether to take this DP sell or not ? On the surface this was a good looking DP as it was on a high volume (VSA) bar as well as stochastic divergence. BUT, and here is the big question, it was “against” the larger degree up trend. So my normal advice is to be very carefully (particularly on DP’s) when they are “against” the larger degree trend.....

The only thing that it had going for it was that it was towards the end of the day, on a day where there was a big up move in the morning, so it would be natural for some “profit taking” to come in and push the market lower towards the end of the day.

So my advice would be to avoid trades that are “against” the larger degree trend, and then and only if you are an advanced trader should you consider them. But even if you do, protect yourself quicker as you know you are against the larger degree trend. In this example it would have probably been a break-even trade anyway as the 100% initial risk was just reached. So (in this example) it did not really matter whether you passed on the trade, or took it and got stopped out for break-even.

Thanks

Steve

YM on Jul 23

Hi Everybody

I received a few question on the YM 3min for Yesterday, so I would like to take a quick look.

The day started with a nice TS3 buy that unfolded late morning. This was a standard setup that was managed using the WPT targets as the STF was weak. As you can see a nice +3R Profit (ignoring slippage and commission) was available as the YM drifted higher as the first projected profit target was reached.

So this setup was OK, because it was “in the direction of” the larger degree up trend, but the main question was on the DP sell later in the day, next post.

Thanks

Steve