Advanced Analysis – the true Holy Grail

OK, I hope you have all been paying attention to my “Advanced Analysis” posts recently, because there was yet another perfect example of my favourite trade that I call the Holy Grail of trades.................. Where we use the tools in MTPredictor to nail the very end of the Wave (2) correction, to then be able to trade the Wave (3) swing.............

As we all know, Wave (3) in Elliott Wave terms is the strongest and longest swing so carries the highest profit potential. Therefore, this is the best possible trade you can have as it carries the largest profit potential for the smallest initial risk....

If you look at the chart, we already knew that the larger degree trend was up, so when the 3min YM made a 5 wave rally (Wave 1), we knew to look for a abc correction (Wave 2). As you can see, the tools in MTPredictor nailed these swings for us. The target was the Typical Wave 3 WPT. This was duly reached later in the day for a brilliant +7.8R Profit (ignoring slippage and commission)......................

Amazing..... and all nailed by the tools in MTPredictor !

Thanks, Steve

Larger degree tend on the 15min Chart

Here is the 15min ES chart, which as you can see made an automatic TS4 buy setup at the low of the day. This set the trend to UP for the rest of the day................ Therefore, as we have already seen, the two sells on the 3min YM charts were “against” this 15min up trend, so should have been avoided......

This was a good example and I hope has helped you all to see how to use the larger degree trend to filter your actual setups on the shorter term chart..

This applies equally well to 240 and 480min charts when trading on 60min Forex, to weekly charts when trading on Daily Stocks. It is the same principle and us using the 15min charts for trades on the 3 and 5min charts, as we do regularly here on this Blog.

Thanks, Steve

How to avoid losing trades..

Hi Everybody,

Here is a chart of the 3min YM from yesterday. As you can see there were two losing sells as the YM rallied. Yes there were only two sells as there was a double top with the second history triangle and the TS4 label so there was only one trade there. So the question arises – was there a way to avoid these losing trades ?

As always, the answer is in the larger degree trend, which we will see was UP in the next post.

So this was a good example of how using the “larger degree trend” helped avid what otherwise would have been two -1R losses.

Thanks, Steve

A choppy day

Hi Everybody,

Friday was a hard and choppy day in which the US marekts just moved sideways in a narrow range...

But what I found amazing was how the MTPredictor automatic routines nailed the main highs and lows during the session perfectly :)

Thanks

Steve

Something amazing

Hi Everybody,

Now do you want to see something absolutely amazing ?

As we have already see, the larger degree trend was up, so one “Advanced technique” I have talked about is to use the DP for a trade off a “fake out” shortly after the open.... Well, this nailed the very low of the day on the 3min YM for you............ The target was the higher DP.

When the YM got there, the STF was strong, so the long trade was swapped to the ATRStop, this held the long trade into the close for a massive +9.6R Profit (ignoring slippage and commission)

Yes, this is an Advanced trade, and no it did not use any of the automatic setups, but what an amazing trade, long from the low of the day to hold a long all day to come out at the high for such a huge profit. These are the kind of trades that are possible with the tools you have in MTPredictor. The only question is whether you are using them ?

Thanks, Steve

Now – shorter term for the trades

OK, now we know that the larger degree trend was up, on the 15min chart, we can focus on any buy setups.

The 3min TF (Russell Index) was a good example, with this good looking TS4 buy around lunch time. The Russell then rallied nicely to reach the first project profit target, where the STF was strong. So standard trades would have swapped to the ATRStop, which held the long trade into the close.

The result, a nice +6.4R Profit (ignoring slippage and commission)

Even with a small (-1R) loss on other markets - for example the YM. The +6.4R Profit here was much larger. This is what makes money over time - small losses and big Profits, and yesterday was a great example of this....

Thanks, Steve

PS, we are now on the June (M0) contracts

First – larger degree trend

Hi Everybody,

As usual, let’s look at the larger degree trend first with the 15min TF (Russell Index) chart. Here we have a nice clear picture of the larger degree (15min) trend being up from the Wave C low, into the DP..........

As such we should have been focusing on the long side for our trades.

Thanks, Steve

PS, we are now on the June (M0) contracts