3min Chart of the Russell Index

The 3min Russell Index also got in on the act a bit later with a good looking TS4 buy setup. The Russell rallied nicely off this to reach the first project profit target where a nice +2.9R Profit (ignoring slippage and commission) was available.

Do you all see now how the larger degree trend was up (on the 15min Charts) so you should have avoided the sells and only taken the buy. The result was approx +5R Profit over the YM and TF buys. Compare this +5R Profit to the potential -0.4R loss the day before and now do you all see how MTPredictor does such a great job of keeping your losses small and Profits large. This is the key to long term success in this industry

Thanks, Steve

3min Chart of the YM

Exactly, as the 15min trend was up you should have avoided any sell set-ups and focused on the buys..........

And we got a nice TS2 buy later in the day that made +3.2R Profit (ignoring slippage and commission), please see the chart to the right.....

Steve

Trend again........

Hi Everybody

I hope you were all paying close attention to my comments in yesterday’s Blog posts, because yesterday was a perfect example of how to use the larger degree trend. So let’s take a closer look at the 15min YM chart as an example.............

Here we can see that the 15min YM put in a Wave 5 low, with the low right at the typical Wave 5 WPT. The YM then started to rally off this low. This set the larger degree trend to up for the rest of day as the 5min YM rallied up into DP resistance.

OK, with the 15min YM trend UP, what did that mean for the shorter-term 3 and 5min trades ?

Steve

Always think in “R” units

OK, in my last post we saw how there could have been -3R on the 3min YM, as I said, the ES was only -1R. BUT, and I have to say this again, these were not good buys to take as the 15min trend on the e-minis yesterday was more down than up, so sells should have been the order of the day (not buys).

So now let’s look at the 3min NQ, where a nice +2.6R Profit (ignoring slippage and commission) was found.

This is the important part, even on a bad day -3R plus +2.6R equals only -0.4R (ignoring slippage and commission) down. Compare this to the +8.7R Profit from Friday and can you all see why it is so important t keep the losses small. There will always be losses and bad day and yes, even losing days, but the trick is to keep these small when compared to the Profits., This is what makes a successful professional trader..........

Steve

Be cautious about DP’s

The DP set-up is a very good setup for nailing the “end” of a trend, but by definition because it is a “trend termination” setup, you need to have added confirmation that a higher degree turn is coming in. That is why I always say be very cautious about DP’s on day like yesterday when the larger degree trend was down on 3 of the 4 US e-minis.

However, let’s look at what the “worst case” would have been on the 3min YM (the ES was a lot better than this with only one -1R loss yesterday). As you can see, there would have been three -1R losses BUT, as I said in my last post, on days like this, when the trend looks to be more down than up, caution is advised on taking long trades, so the more experienced traders among you would not have taken these sell setups.

Steve

Trend, trend, trend.............

After a good week last week it looks like we are back in the harder part of the cycle, particularly for the definition of the larger degree trend. A good “rule of thumb” is that if the picture is unclear then be very cautious or even don’t trade. There are too many amateurs who “over trade” and think they have to trade lots each and every day, this is simply untrue. As I outlined in the Trading Course, there will be times when the picture is unclear. When this happens the best cause of action is to have the patience and discipline to wait until the picture become clear again before committing your valuable trading capital.

Yesterday the 15min trend looked down on all the US e-minis, apart from the 15min YM earlier in the day which looked to be making support at the DP. As such you should have been mainly looking for short trades.

Steve

Back now............

Hi Everybody,

I am back now after a wonderful and very enjoyable vacation.............

After looking through the charts, it was nice to see that there have been some nice trades while I was away, for example this massive +8.7R Profit (ignoring slippage and commission) on the 3min YM from last Friday...........

Thanks

Steve