Hi Everybody,

Sorry there have been no Blog updates in the last few days but I am feeling unwell, so I will come back to the blog once I start feeling better

Thanks

Steve

FTSE 3min chart - question

Wow, this FTSE has been an excellent educational example today, with some perfect setups earlier, but now I ask you this question, see chart – “Should you consider TS3 sells on the 3min Chart, when the 15min Chart is UP off the Wave 5 low” ?

I hope you all know the answer to this one already :-)

Exactly – the answer would be no, as they would be against the larger degree 15min chart

Wow, what a brilliant series of education posts on the FTSE today. I hope you have all learnt from them

Thanks, Steve

FTSE 3min – follow up

Amazing ............

That is exactly what unfolded on this 15min Chart..................... A Wave (4) rally, that was then followed by a Wave (5) declined that made a low right at the Typical Wave 5 WPT – amazing :-)

Thanks

Steve

FTSE 3min – follow up

OK, what of the 15min Chart I hear you all say, how did this TS3 buy, on the 3min chart “fit in” with the larger degree 15min Chart?

Let’s take a look. As you can see, we are coming off WPT support for the end of a Wave (3) low, so we should anticipated some kind of Wave (4) type rally. But even if this does not unfold, some kind of rally off this 15min low should be anticipated.

So, yes the TS3 buy on the 3min chart was “in the direction of” the larger degree 15min chart

Thanks

Steve

FTSE 3min

Hi Everybody

Well, we did not have to wait too long for a good trade to come along. Here is a perfect example of my favourite trade, and is exactly the same as I was looking at in the Daily GBP only yesterday.

Yes, because this TS3 buy was against a red STF, it should be considered an Advanced Trade, but I do look for this setup regularly, mainly because the R/R is so good, because we are aiming for the Typical Wave 3 WPT, and not the nearer Wave C WPT’s

Although this trade did not quite reach the anticipated target (Typical Wave 3 WPT) is was stopped out with a very nice +5.9R Profit (ignoring slippage and commission), so was a good trade anyway

That is the Cyclical Nature of Trading :-)

Thanks

Steve

The Cyclical Nature of Trading

Hi Everybody,

The last few days have been very hard in the US e-minis with few setups as the market pushed higher with little or no reaction down. When a market does this, it does not give us a chance to enter on any ABC (3-swing) correction. But this is all right, because we had a good few days before this, so this is just the natural cyclical nature of trading, where we are now in the quiet period.

All professional traders know, and accept, that trading goes in cycles, where the good (profitable) times are followed by quieter times where a few small losses can unfold, before the good (and profitable) times come round again. It is only the Amateur (who does not understand how the markets really unfold) that demands the market give them money every day. This is simple not how the markets unfold in the “real world”.

This is why I will have to keep on reminding you all about the Cyclical Nature of Trading, and remind you all that there will be quiet days. But this is good, because after a few quit days, we should anticipate that a few good, and profitable days, should come around. Remember all professional traders must have the patience and discipline to succeed.

So let’s see how the next few days unfold

Thanks, Steve

FOREX – GBPUSD Daily Chart

Hi Everybody

For the Advanced Traders.........

I wanted to take a closer look at a daily Chart of the GBPUSD, as this is a very good example of when to look to the Wave 3 WPT’s for targets rather than the closer Wave C WPT’s.

As outlined in the Trading Course, this is my favourite setup because the ABC (TS3) setups comes as the “first correction” from the “first move” off an “important high or low”. In other words, this is more likely to be a Wave (2) in Elliott Wave terms. And what usually follows a Wave (2) – exactly, a strong Wave (3) type swing. As you can see, this is exactly what we have with the GBP.

As the STF strength band was exceeded as the Typical Wave 3 WPT was reached, the ATRStop can be used to carry on the strong trend.

Currently sitting on +10R Open Profit (ignoring slippage and commission)

Thanks, Steve