Break-even trade

If you all remember last week I talked about using the DP from the minor minor Wave 4 swings as an “initial target” off the end of a Wave 5 Swing. Well, the same applies from the end of a Wave C from the minor Wave B swing. As we can see on the 3mon NQ yesterday, this nailed the low before the NQ reversed. So how can this be used ?

In this example, as you were short from the prior TS3 sell, you could have used this DP to lower your protective stop to at least break-even once the DP level was reached. AS you can see, this helped avoid what would otherwise have been a losing trade.

Again, all these techniques are in the Trading Course for you to study in your own time.

Thanks, Steve

Another quiet day

Hi Everybody,

As I suggested in yesterdays post, yesterday was another quiet day, with few trades, this is just all part of the Natural Cyclical Nature of Trading. Having said that, there was a nice TS4 buy setup late in the day on the 3min ES. As you can see, this nailed the low, just before a nice rally into the close.

The result was a +2R Profit (ignoring slippage and commission).

So even though it was a quiet day, the 3min ES ended up with a nice profit.

Thanks, Steve

A quiet day

Hi Everybody,

Friday was a quiet day on the US e-minis. But this is OK as the earlier part of the week was so good, with some fantastic trades.

This is just the natural Cyclical Nature of Trading, where the good times are followed by quieter times and some small losses before the good time come round. So having a quiet time on Friday should have come as no surprise at all.

It will not be long before we get back into the good part of the cycle, but we still may have a few quiet days yet.

Thanks, Steve

A good day on the e-minis

OK, let’s also look at the 3min NQ...........

And here we can see that the STF was black at the time of the TS4 sell, so this could have been taken using the standard guidelines.

The NQ then declined nicely into the DP target, where a nice +3.9R Profit (ignoring slippage and commission) was banked. Add this to the +1.4R Profit form the ES and it was a good day on the e-minis yesterday..........

Thanks, Steve

A good day on the e-minis

Hi Everybody.....

Yesterday was a good example of why you all need to follow all 4 US e-minis, as we will see in the next post. But before we get there, let’s start with the 3min ES where we had a -1R loss. Yes this was only one -1R loss as the low was taken out after the first signal “before” it was filled so no trade. So only one -1R loss here.

Then we had a DP buy that nailed the low. The ES rallied nicely to reach the DP target where profit were taken (as the STF was weak) for a nice +2.4R Profit (ignoring slippage and commission).

It would have been nice to then “stop and reverse” to the TS4 sell, but the STF was blue. But, let’s look at the NQ in the next post.........

Thanks, Steve

PS, please also see the Advanced Blog, for an “experts” eye on the TS4 sell......

3min ES.

Hi Everybody,

It was a fairly quiet day on the 3min ES for the Standard Traders among you. As the STF was blue, you should have only been looking for buy setups (no sells), and we did get a nice TS4 buy later in the day.

As the STF was weak, profits were taken at the WPT target for a nice +2.1R Profit (ignoring slippage and commission).

Now, we all know that the market actually went much higher, so could you have caught that rally ? Let’s take a look in the Advanced Blog.

Thanks, Steve

Mind the Gap...........

Hi Everybody,

When markets make a BIG gap opening, like yesterday, it is always worth viewing this with caution. When this happens, the first think I do is check the “larger degree” DP’s on the 15min Chart. Here the normal “day session” charts did not give any good information, but the 24-hr chart did (please see the posts on the Advanced Blog).

As you will see, the ES not only made a big gap up yesterday, but ran into 15min DP resistance. When this happens then the “most likely” outcome is for the market to fall as the market attempts to “close” the gap. This is why all potential buy setups failed yesterday and the best trades were on the short side.

I know this is the Standard Blog, but I would like you all to see this “Advanced” short on the 3min ES to show what is possible, once you become more experienced. As you can see, mid morning we did have an abc correction, as found by the Elliott Wave module. The only reason this was not a automatic setup was because of the increased initial risk, but as we were anticipating a big decline, this could have been taken.

As you can see, this managed to capture most of the decline yesterday.

Please take a look at the Advanced Blog, to see now only how the “larger degree trend” was down, but also the 2min chart helped “give confidence” in this ABC manual trade.

Thanks, Steve