15min ES chart

I normally now move down to the 3min charts for the actual trades, but today I want to also look at the 15min ES chart first, because this has a bearing on trade management on the 3min TS4 long that I will look at in a minute.

The part to focus ion is the TS3 sell that unfolded later in the day. When this came in, alarm bells should have started to ring and this is why I suggest protecting the TS4 long on the 3min chart more aggressively. Especially as we are heading towards the harder part of the trading Cycle (Cyclical Nature of Trading)

Thanks

Steve

15min NQ chart

Hi Everybody,

As I said in yesterday’ post, yesterday was a harder day in the US eminis. But after a few days of sharp declines, a low was likely and the best setup was on the 15min NQ, where the low yesterday came in right at the Typical Wave 3 WPT.

I agree, this was not perfect, and that is why caution should have been used on any long trades. But still longs should have been preferred over shorts yesterday.

Thanks

Steve

Cyclical nature of Trading

OK, now we have had a few very very good days in the US e-minis with some massive profitable trades, we must keep an eye on the Cyclical Nature of Trading.

Too many amateurs wait for a few good trades before they take place their trades, but then a few losses come along so they stop, then they see a few good trades so they start again, then a few losses come round. In other words they do exactly the wrong thing !

Once you understand the Cyclical nature of Trading you will understand that you should be come cautious about trades after a good run, and then get keener to place trades after a run of bad trades. This is what professional do, because they understand that profits and losses come round in cycles.

The amateur tends to do exactly the wrong thing at the wrong time... because they do not understand how markets unfold in the “real-world”. So my advice, is to be slightly more cautious now as we have had a run of very good trades...............

Thanks, Steve

TS4 sell on the 3min YM

OK, now we know that we should be focusing on the sells (and not the buys), the min YM did give us a lovely TS4 sell around 11:00am

The YM then declined nicely, past a potential buy, but we have already determined that the larger degree trend was down, so this buy should have been ignored in preference of the current short trade.

The YM then reached the first projected profit target when (using the standard trade management guidelines) a very nice +4.9R Profit was available (using slippage and commission)

A good end to a very good few days in the US e-minis :)

Thanks, Steve

As usual – larger degree trend first

Hi Everybody,

The trend on the 15min YM on Friday was Still down, with no visible DP or WPT support at all. As such, we should have been focusing on sells on Friday and ignoring Buy setups.

OK, with that in mind, lets now move down to the 3min Chart

Thanks, Steve

DP buy on the 3min Chart

Now we have confidence in the 15min DP support we can consider the 3min DP long trade.

Yes, it was a hard and boring trade, but the NQ did reach the first DP profit target. Using standard trade management guidelines, meant taking profits there as the STF was weak. This added another +2.2R Profit (ignoring slippage and commission) to what was already a brilliant and very profitable day on the NQ.....

Thanks, Steve

Back to the 15min Chart

OK, so what of the 3min DP buy that we saw at the end of the last post. Well, this is where we go back to the 15min Chart and check the “larger degree” position.

When we do that, we can see that the 15min NQ is now at DP support, so this not only the logical place to start to banks profits on the prior DPO short trade, but also look to reverse to a new long trade....

Thanks, Steve