ES does the business, with over +6R Profit on the day!

The second trade was a DP buy, that nailed the very low of the day !

As the ES reached the first profit target, the STF was at the strength band, so we swap to the ATRStop. You will notice that the ATRStop dots swapped from blue (below the bars) to red (above) the bar as the market pushed high on a wide range bar at 3:15EST. If this happens then just trail your stop below the bar’s lows. The reason for quick ATRStop swap as because of the very wide range bar.

The result was a very nice +3.8R Profit (ignoring slippage and commission), making over +6R Profit for the day as a whole on the 3min ES.

What a brilliant day, and again a perfect example of the Cyclical Nature of Trading, and how the good times have come round again, exactly as I said they would a few days ago. I keep on going on about this, because it is how markets unfold in the real world, so you all need to be aware of this.

Thanks, Steve

ES does the business, with over +6R Profit on the day !

Hi Everybody,

This what I mean by the Cyclical Nature of Trading, after a few hard days, the 3min ES comes up trumps with two trades yesterday, both of which made profits for over +6R Profit overall............ Brilliant, and is why you must always have patience during the hard and quiet times, as the good trades will just be round the corner :-)

The first of these was a TS1 sell. With the STF weak, profit was taken at the first profit target (which was the low of the day !) for a very nice +2.5R Profit (ignoring slippage and commission).

Thanks, Steve

3min Russell comes up trumps again

Hi Everybody,

Another hard day yesterday, but at least the 3min Russell cam up trumps with a nice trade mid morning for a very nice +3,7R Profit (ignoring slippage and commission), especially when you bear in mid how choppy and narrow range the swing were yesterday.

Yes, there was a -1R loss to start with, but this was small when compared to the +3.7R Profit. Small losses and Big profit – that is what is required for a successful approach to trading.......

Thanks

Steve

3min Russell

It was not all doom and gloom on Friday, the 3min Russell Index did have a nice +3R trade (ignoring slippage and commission) as it reached the DP level (form the prior wave b low).

Thanks, Steve

A hard day.......

Hi Everybody,

You all know about the Cyclical Nature of Trading by now, and yes, we have to all accept that there will be some hard days when trading, and Friday was one of them, mainly because there was no clear larger degree trend direction. And as such the markets just chopped around in a sideways day. Days like this happen, all professional traders know and understand this.

The 3min ES was a good example, with two -1R losses early in the day. But at least there was a nice VSA (high volume spike) setup later in the day. Notice how the low was at both DP and the Typical Wave C WPT for support – as such was a good setup. It was just a pity the rally off the low was only small. But then a +1.2R Profit (ignoring slippage and commission) on the close helped reduce the -2R loss from earlier.

As I say, you all need to know about (and accept) that markets do go in cycles, but the good news is usually after a hard time we get some good, and very profitable days.

Thanks, Steve

The reason this may be new to some of you ( the Cyclical Nature of Trading ) is that most Gurus and software developers are not traders and as such do not understand how the markets really work and unfold on a daily basis.

+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