A quiet day yesterday

Yesterday (Tuesday) was a quiet day. This can happen after such a big “gap open” where the markets opened sharply lower, before drifting sideways for the rest of the day.

But quiet days are OK, and just part of the Cyclical Nature of Trading. We had a good day on Monday, so a quiet day yesterday was OK.

Thanks, Steve

A good day on Monday

As we can see from the chart. The TS4 sell on the NQ “was valid” as the STF at the sell was black.

This then caught the fall into the close for a nice +4.5R Profit (ignoring slippage and commission).

Adding this to the +2.4R from the ES earlier in the day and Monday was a good day overall

Thanks, Steve

A good day on Monday

Hi Everybody,

Sorry I am posting the charts and comments for Monday a day late, but it was such a good day, I felt that they should be up.

It was an interesting day on the 3min ES, with a valid DP buy coming in around lunch time. This worked out nicely as the ES rallied into the first profit target, where a +2.4R Profit was available (ignoring slippage and commission)

This was a standard setup as the STF was Black. But the TS4 sell later in the day was “against” a blue STF so had to be avoided. But this was not the case on the NQ, see next post.

Thanks, Steve

History Triangles

Hi Everybody,

Yesterday, on the 3min ES, there was a good example of how the “History Triangles” are not always -1R losses. If you look at the history triangle on the 13:09 bar you will see that the “next bar” (13:12) the high of the 13:09 bar was exceeded “BEFORE” the low, so the short trade was invalidated “before” it was filled.

So even though there is a History Triangle here, there was no trade, so no -1R loss.

The code is not that intelligent to be able to “look into” the bars to see which happens first – the stop trigger or the trade entry. So you do need to use some common sense and look at prior setups yourself to decide how the market unfolded.

Thanks, Steve

5min ES

OK, now lets move over to the 5min Chart. As the STF was red, we should have been looking for just sell setups, and we got three of these later in the day. The first of these was “at the same time” as the -1R loss on the 3min Chart, so should not be counted here, on the 5min Chart. We then had a valid -1R loss just before the TS4 sell nailed the high perfectly.

The ES then declined into the close, where a nice +4.1R Profit (ignoring slippage and commission) was available.

So -1R plus +4.1R makes a nice +3.1R Profit for the day. But as we have seen, this came from the 5min chart, when the 3min signals were flat

Thanks, Steve

PS, please take a look at the Advance Blog for why this last TS4 sell was a “high confidence” trade.

3min ES

Hi Everybody,

Yesterday was an interesting day, that started off with a -1R loss on the 3min ES just after the open. Then we had a nice TS2 sell, that made +2.1R Profit (ignoring slippage and commission). But then we had a TS3 sell later in the day that would have lost -1R.

So overall, the 3min ES was flat on the day........................

But, this is why I always say that you should also follow the 5min Charts, because, as we will see in the next post, that is where the money was made yesterday.

Thanks, Steve

The Holy Grail of Setups

Hi Everybody,

Today I would like to look at the Holy Grail of setups. This is a setup that I talk about in the Trading Course, and for those of you who have been following me for a while, will know that it is my favourite setup.

We got this setup on both the NQ and YM 3min Charts yesterday. As you can see, with +8.3R Profit (ignoring slippage and commission), this was a massive Profit to have yesterday.

I will take a more detailed look at the setup in the Advanced Blog, but I also suggest you take a look at this Forum Post: where I look at the setup in more detail as well

This setup was the reason I designed MTPredictor in the first place – to catch the end of Wave (2) to then be able to trade the whole of the Wave (3) swing, I think that this is the best trade there is !!

Thanks, Steve