+9.6R Profit on the 5min DAX

Hi Everybody,

Yesterday was yet another great example of a trade unfolding on the 5min Charts, as well as the 3min charts.

Here this TS3 buy on the 5min Dax turned out brilliantly. With the STF strong, normally I would suggest just using the ATRStop for trade management. But when you are at larger degree resistance (not show) “and” you are sitting on almost +10R Profit (ignoring slippage and commission), then common sense tells you to protect a profit this large.

Along with the FTSE wave 5 low (earlier post) yesterday was a very good day for the European traders among you

Thanks, Steve

Against the larger degree trend ?

Hi Everybody,

I am asked sometime what to do if you know you are “against” the larger degree trend, or is you are “unsure” of the larger degree trend. My advice, is when you are not confident that you are “with” the larger degree trend, then look to protect yourself quicker by using the 100% initial risk guideline

A good example was on the 3min ES from yesterday, where it looked like the 15min chart put in a high (off DP resistance) but then a TS3 buy setup appeared.

Normally I would suggest avoiding these types of trades, but if you wanted to take it, then protecting it quicker by moving the protective stop to break-even as soon as the 100 initial risk level was reached would be a good idea.

Thanks, Steve

One for the FTSE traders

Hi Everybody,

Here is an Advanced setup on the 3min FTSE form this morning. I say it is advanced because it uses the Elliott Wave module.

But, and this still amazes me, can you see how the low of the day was right at the Typical Wave 5 WPT. Nailing the EXACT low like this was brilliant !

The 3min FTSE then rallied straight into the DP (from the prior Wave 4 high), exactly as taught in the Trading Course (which you have all read and carefully studied :-) ) for a very nice +4.8R Profit (ignoring slippage and commission.

Amazing – to nail the exact low so well, I love it :-)

Steve

Now for the Advanced Traders

The more Advanced Traders among you will have spotted that the decline from the high unfolded in 5 waves. As you will know, trend tend to unfold in 5-waves so once you are in the 5th wave the swing is nearing and end. Therefore it makes sense to tighten up on stops, particularly as this short trade had also reached its own DP target.

Trailing stops just above the bars high would have resulted in a slightly larger +4.2R Profit (ignoring slippage and commission). Again, showing how the more Advanced Traders among you can squeeze out a little more profit above and beyond the standard trade management guidelines. This is why we provide so much education to help traders move beyond the basic and standard setups and trade management to study and learn to become a more experienced trader....

Thanks

Steve

Perfect example of how to use the larger degree trend Part 2

OK, now we have established that the 15min Chart was at DP resistance, let’s see if any sell setups (DP’s) were unfolding ?

And guess what ? We have two, the first was just stopped out for a -1R loss. As usual, any losses are kept small and under control. Then we had another DP sell, which actually nailed the very high of the day for you ! But do you all see how these 3min DP sells were good to consider as they also fell in line with the larger degree trend, which was at DP resistance in this case ?

The Russell declined for there. The result was a +3R Profit (ignoring slippage and commission) as the ATRStop was used because the STF strength band was exceeded.

I hope you all remember this example as it has been a perfect example of how to use the larger degree trend in conjunction with the time frame you are actually trading......

Thanks, Steve

PS, onto the Advanced Traders in the next post and how they could have squeezed a little more profit from this trade.....

Perfect example of how to use the larger degree trend

Hi Everybody,

I keep going on about the larger degree trend, and in particular, why it is so important to only consider DP trades when they also fall at larger degree support or resistance. Well, yesterday was a perfect example on the Russell Index.

To show what I mean, lets first look at the 15min chart.

Can you all see how the high of the day fell at DP resistance ? Therefore, this was a good time to consider any shorter term (3min) DP short trades........... So let’s move to the 3min chart and see what we got :-)

Thanks

Steve

3min Russell

Some of the other e-minis did a little better than the ES, in particular the 3min Russell Index. Here the STF strength band was exceeded so the ATRStop was used, which ran the trade up for a nice +5.9R Profit (ignoring slippage and commission)

Thanks

Steve