Hi Everybody,

Here is a great example of how the High Volume (VSA) spike indicator helped confirm a TS3 buy on the 5min NQ on Friday. As you can see, this nailed the low nicely. The NQ continued to rally, to reach the first projected Profit target, where a nice +4.9R Profit was available (ignoring slippage and commission)....


Thanks


Steve

+5.7R On the YM yesterday....

Hi Everybody

Here is a Video showing how you can look for Advanced Trades, using the tools in the MTPredictor software

http://www.mtpredictor.com/Videos/2010-Nov23-2/2010-Nov23-2.html

Here we managed to nail the very low of the day yesterday on the 5min YM for a lovely +5.7R Trade (ignoring slippage and commission)

Thanks

Steve

Dax sharp fall

Hi Everybody,

Here is another great example of how the DP combined with the MTP VSA (high volume spike) can nail brilliant turns for you.

As we can see, this nailed the high of the day on the 3min Dax this morning, that had you short as the Dax started to decline sharply !

As I keep on saying, the tools are in MTPredictor to be able to uncover some amazing trades, whether you decide to take the time and make the effort to learn how to use this is up to you !

Thanks, Steve

DP and VSA nails high of the day !

Here is a great example of our MTP VSA (High volume spike) indicator, and when the market reverses at a high volume spike at DP resistance it can very often give us a great trade, and on many occasions nail the very high (or low) of the day, as it did on Friday for us on the 3min Russell Index. Now, I find this amazing that we can nail the very high and low of the day on the US e-minis so often with the tools you have in the MTPredictor software. MTPredictor is an absolution amazing piece of software if you only take the time to learn and understand how to use it......

As we can see, this nailed the high of the day for a lovely +2.4R Profit (ignoring slippage and commission).......

The trades are here, day after day, whether you take the time to learn how to use MTPredictor to its full potential us up to you !

Thanks, Steve

Larger degree trend with the 15min Chart

Hi Everybody,

As I always teach, Advanced Traders should always have an eye on the “larger degree trend” using support and resistance zones on the 15min Charts. In this way they can tell if a trade on the 3min chart is against or with this trend.

As you can see, the 15min ES hot DP resistance (which nailed the high) and as such the 15min ES was declining at the time the TS1 buy came in on the 3min Charts. So this trade was “against” the 15min trend. That is why the 100% initial risk guideline should have been used.

Thanks, Steve

When to take DP’s

Hi Everybody,

As an Advanced Trader you have the additional skills to be able to further evaluate more advanced setups. For example the DP buy on the 3min YM off the low of the day. Yes the STF was red, which it will be with DP’s a lot of the time as DP’s are “trend termination” setups, so why was this a god one to consider ?

Well, first, this DP buy came at the end of a “good looking” 5-wave decline, with support at the minimum Wave 5 WPT as well as the DP zone. Then we had good clear Stochastic divergence at the low. Then the low was also a High Volume Spike. So all these things added together to give “added weight” to the setup.

This nailed the ,low of the day for you, and enabled a trade off the lows for another +3.7R Profit (ignoring slippage and commission). Add this to the +9.7R and +2.5R Profits from earlier and you had a massive day on the YM yesterday....

As I have already said, it still amazes me when we get days like this, I just wish more people would put the work in to understand and fully appreciate how markets really work, so more people can have days like this......

Thanks, Steve

DP nails the low...

Hi Everybody,

As we have seen in the Standard Blog, the YM declined nicely off the TS4 sell on the 5min Chart. But (as I always say) Advanced Traders must always keep an eye on the “larger degree” (15min) support and resistance zones. Well, just look where this decline stopped on the 15min Chart – right at DOP support.

These levels (DP and WPT) are very very powerful because they project “in advance” levels of support and resistance, and as we have seen, they are very powerful indeed, with markets making highs and lows at these levels all the time !

But the point being is that you should have been “prepared in Advanced” for the level at which the YM made its low yesterday – well before it even got there ! Now that is powerful stuff !

Thanks, Steve

Stochastic Divergence

Hi Everybody,

I talked about using more “standard” technical analysis, like oscillator divergence a few days again,. So I would like to share another great example on the 3min YM form yesterday.

Here we can see how the YM made a reversal at DP resistance, but the important point is how this was also on very clear Stochastic divergence. This nailed the high for you, just before a nice fall.

With +3.4R Profit (ignoring slippage and commission) available at the opposing DP target, this was a nice trade, and shows how the MTP tools (DP) can be used in conjunction with more standard analysis techniques, like oscillator divergence.

Thanks, Steve,

Holy Grail trade on the 3min Dax Part 2

Hi Everybody,

On the Standard Blog, I took a look at what I call the “holy Grail” setup. This is where the abc correction (TS4 sell) come in as part of the “initial correction”, to the “initial move” off an “important high or low”. In Elliott Wave terms, this is a Wave (2) correction. So let’s take a look at this chart, using the Elliott Wave module in MTPredictor.

As you can see, the software found a Major Wave (2) high at the TS4 sell, which was followed by a string Wave (3) decline. This is a perfect example of this Holy Grail setup.

With a +14R Profit available as DP support came in, this was a brilliant trade and yet another example of why this is my favourite setup......

Thanks, Steve

Elliott Waves and DP tools

Hi Everybody,

Please remember that MTPredictor contains some great tools and modules in the software, for example the DP and Elliott Waves. Yesterday, on the 5min YM, there was a great example of how these combined together with a standard technical analysis techniques of oscillator divergence to nail the high of the day for you yesterday. The important points are how the reversal came after a “good looking” 5-wave rally, with the high unfolding at both DP and WPT resistance, and all on very clear Stochastic divergence. As you can see, this nailed the high of the day for you !

The YM then declined nicely into the close for a lovely +6R Profit (ignoring slippage and commission).

There are too many people who simply rely on the Automatic signals, without taking the time, and making the effort, to learn how to use these more Advanced techniques. When you do, you will be amazed at what additional trade opportunities you can uncover !

Thanks, Steve

Gap Open play on the NQ

Hi Everybody,

For those of you who have read the Trading Course and have followed this Blog for a while will already know that I like to look for a “Gap Open play”, where the markets makes a Gap open but then reverses immediately at DP support/resistance. Well, we had a brilliant example on the 3min NQ yesterday.

As you can see, this nailed the low, just before the sharp rally in the morning. As the STF was strong as the initial DP target was reached, Advanced Traders would have swapped to the ATRStop. This would have held the long into the highs of the day for a very nice +6R Profit (ignoring slippage and commission)

Thanks, Steve

Manual Analysis

Hi Everybody,

Today I would like to remind you all that both MTPredictor v6.5 and the NinjaTrader 7 RT add-ons have a number of additional “manual” tools that you can use to uncover additional trades. Here is a good example form just this morning on the 3min Dax.

Here we had support at both the DP and the minimum Wave C WPT. This signal a potential long trade The Dax then rallied nicely. The ATRStop was then used to lock in a very nice +3.1R Profit (ignoring slippage and commission).

But the point is that MTPredictor is not just the automatic setups, you do have the tools to be able to perform your own analysis and as such find additional trades.

Thanks, Steve

The Holy Grail

Hi Everybody,

Yes, the 5min NQ that I looked at in the Standard Blog had the backing of the STF, But I always like to see a nice “pattern” and the abc correction on the NQ was a littler “flat and choppy” for my liking. As you all know, my favourite trade (I call the holy grail), is when we get an “initial” correction off an “initial” move off an “important” high or low. So for this I like to see a nice “pattern”. For me the 5min YM had a batter looking “pattern” than the NQ so was the better play for the Typical Wave 3 target. In particular the way we had good support at the initial low (15min support, not shown), and the abc was more of a “correction” to the initial rally, rather than just a drift sideways as in the NQ.

As you can see, this indeed worked out with the 5min YM reaching the Typical; Wave 3 WPT perfectly for a lovely +8.7R Profit (ignoring slippage and commission).

What I also liked about this trade was the way the rally off the TS3 buy unfolded in 5-waves, giving yet more confirmation to hold the trade into the targets.

Again, all this gets easier with experience and knowing what to look for, but as I keep on showing this is why I call this trade the “Holy Grail” and is the one I look out for all the time.............

Thanks, Steve

When to take DP setups, Part 2

OK, here is the 15min Chart. As you can see the TF was at DP resistance on this 15min Chart at the time the 3min DP sell was coming on. Thinking about my train example again, this is like the rails coming up against a set of buffers that signal the end of the track. As the “larger degree” 15min Chart was at resistance then it was “OK” to go against the STF colour on the 3min Chart as a “larger degree” trend reversal was indicated.

The DP’s and WPT’s are very powerful and this is why I suggest that all traders should always be aware of DP support and resistance zones on their “larger degree” (15min) charts “before” the 3 or 5min Charts get there......... This is just part of the daily routine that all traders must do. Saying you are too lazy to do this “prep work” is no excuse. It does not take any time at all to have a “quick look” at your 15min charts at regular intervals during the day so you all “know” where these areas of “larger degree” support and resistance are.

Thanks, Steve

When to take DP setups

Hi Everybody,

This is a question I get asked a lot, and that is when to consider DP setups. The reason this is not as easy as the other setups is because the DP is a “trend termination” setup. So it is like standing in front of a train, in that you will get squashed if the current move is a strong trend. So when should these be avoided and when can you consider taking them ?

As always, the answer is in the “larger degree trend”. Yes we have the STF on the “current chart, but as well all know, all indicators are lagging (by their very nature), so we look to the larger degree chart for DP’s and WPT’s. Let’s take a look at an example on the 3min TF (Russell Index) from yesterday.

As you can see, this was a very good looking DP sell setup, that had a number of other techniques all pointing to a high as well. But the STF was blue. So normally I would suggest “Standard” traders avoid trades that are “against” the STF colour. BUT, lets now take a look at the 15min Chart.

Thanks, Steve

“day session” or 24hr charts

Hi Everybody,

As you have already seen, I have taken a look at the DP sell on the 3min YM chart. But as the STF was blue at the time, Advanced Traders needed “larger degree resistance” at this level to justify ingoing the STF colour.

Now, when we look at the normal “day session” 15min YM chart, there is no obvious resistance. When this happens, I also take a quick look at the 24hr session data just to see. And in this example, using the 24hr chart, not only was the YM at DP resistance at this high, but there was also an automatic DP sell set-up as well ! As such, this gave the Advanced Traders among you permission to consider this trade.

As we have already seen, this nailed the high of the day for you ! Then stopping and reversing at the TS4 buy (using the standard rules) nailed the low for you ! I don’t think the newer traders among you fully appreciate how amazing this is, to be able to nail both the high and low of the session is absolutely brilliant. All the tools you need are in MTPredictor, it is up to you whether you wish to take the time and make the effort to learn how to make full use of them....

Thanks, Steve

VSA and DP nail the low !

Hi Everybody,

Here is yet another great example that I was following yesterday on the 3min FTSE. Here we had a High volume (VSA) spike that unfolded right at DOP support. This nailed the low of the day !

The FTSE then rallied nicely to reach the initial DP target, but as the FTSE reached this target the STF (not shown) was strong, so this suggested that the rally would continue higher..... But then I noticed that the rally was unfolding as a very nice Elliott 5 wave sequence, so when the FTSE reached the minimum Wave 5 WPT and the open Profit was a nice +6R (ignoring slippage and commission) the “sensible” course of action would have been to protect this Profit.

As you can see, this not only nailed the low of the day for you, but also caught a very nice rally. You already have all the tools in MTPredictor to be able to uncover brilliant trades like this, whether you make the effort to learn how to do this is up to you.

Thanks, Steve

The Holy Grail

Hi Everybody,

The 3min FTSE yesterday gave us another brilliant example of my favourite trade, where I look to play the Wave (3) swing, following an “initial correction (Wave 2) after the “initial rally” (Wave 1) off an “important low”. You have all seen this many times before, so you should be familiar with this play by now....

The result was amazing, with a massive +7R Profit (ignoring slippage and commission) as the 3min FTSE reached the Typical Wave (3) WPT.......... brilliant !

Thanks, Steve

High volume (VSA) spike nails the high of the day !

Hi Everybody,

The 3min Russell Index yesterday made a classic high volume (VSA) spike reversal at double DP resistance top nail the very high of the day yesterday ! The Russell then decline into the opposing DP, where another high volume (VSA) spike unfolded, but this time the bar’s high was not exceeded, so your stop would have been trailed as the Russell continued lower.

The short trade would have eventually been stopped out for a massive +9R Profit (ignoring slippage and commission)

An amazing trade and a brilliant example of how the high volume (VSA) spike and DP combination can nail brilliant trades for you – in this example, short from the high of the day ?

Thanks, Steve

5min DP sell nails the high of the day !

OK, as we have already seen, as the 15min ES was at DP resistance it was OK to look for DP sells on the shorter time frames (even if there are “against” the STF colour). And guess what – the 5min ES chart gave us a DP sell at the very high of the day ! Yes there was a -1R loss before this 5min DP sell as the 3min ES give a 3min DP sell just before, but then you should all have been following the 5min charts as well, so re-entered on the 5min Charts.

As an Advanced Trader and knowing that the “larger degree” trend was down, should you have been looking to come out at the first target, or look to run the short trade further ?

Exactly, the ATRStop was a good choice as that enabled the short trade to run as the ES declined for most of the day. The end Result as a nice +5.2R Profit (ignoring slippage).

But what has amazed me over the last few days is how well the DP’s have been working on the 15min Chart, and as such have enabled us to maximise trades on the shorter time frames. The results have been brilliant - it is always a great feeling to be long or short form the very bar of the high or low of the day – as that is the very best any day trader can do !

Thanks, Steve

15min DP nails the turn – yet again !!

Hi Everybody,

We have been following the DP on the 15min Charts for the last few days now, and we have seen what an amazing job it has done, nailing most turns in the market for us. Well, yesterday was no exception, with the high of the day coming in at DP resistance on the 15min ES chart.......... Seriously people, I something think that many of you do not fully appreciate how amazing this is. To have a piece of software that is capable of nail turns this accurately and this often is absolutely amazing, and just shows how good the tools in the MTPredictor software are !

Anyway, knowing that the 15min ES was at DP resistance you should have move down to the lower time frames, so let’s see what unfolded on the 5min ES in the next post.

Thanks, Steve

15min DP support nails the low !

Hi Everybody,

As you have already seen, we had my “favourite setup” as the TS3 buy that unfolded on the 3min ES., But how did you know to look for a trade that was “against” the STF colour. Well, again, it all comes down to the “larger degree” trend. So let’s take a look at the 15min ES chart.

Here you can see that the ES found support at the 15min DP and was staring to rally. This set the “larger degree” trend to up, and as such alerted all the Advanced Traders among you to start to favour the long side of the market. Hence the TS3 buy setup on the 3min Chart

Thanks, Steve

Elliott waves and DP’s nails the turns

Hi Everybody.

I could not resist sharing this chart of the 3min NQ with you all............. As you can see, MTPredictor with its Elliott Wave module and DP tool managed to nail virtually every high and low in the market yesterday.

I find that absolutely amazing, and just shows how brilliant the tools that you all have in the software really are !

Thanks, Steve

DP and VSA nails high ...

There were also a number of other good Advanced setups yesterday. The one I liked was the high that unfolded at 14:15EST on the 5min Chart. As you can see, this was a high volume (VSA) spike that unfolded at DP resistance. This nailed the corrective high to take advantage as the ES declined into the close.

For those of you who also follow more “standard” indicators, this high unfolded on a classic Stochastic divergence as well. This added weight to the DP/VSA sell setup.

As you can see, MTPredictor has the tools that will take your trading to the next level.

Thanks, Steve

5min DP nails high !

OK, let’s now take a look at the 5min chart. Here you can see how the 5min ES reversed with a red (sell) reversal bar that nailed the very high of the day for you. Advanced Traders could have take a short trade off this high. The target would have been the opposing DP support zone for a nice +4.4R Profit (ignoring slippage and commission).

Yes, the DP’s don’t work this well all the time (no analysis technique does), but when they do they allow you to enter trades with a small controlled risk, to then make profits that are larger than the losses, and that is the key to successful trading.......

Thanks, Steve

15min DP’s – amazing !

Hi Everybody,

I hope you were all flowing this blog yesterday where I looked at the 15min ES and showed how the DP nailed the low of the day on Friday for you. Well, just look where the 15min ES put in a high yesterday – right at DP resistance. I still find it absolutely amazing how the markets reverse at these levels !!

OK, not we had this reversal nailed, how could have the Advanced Traders among you made use of it ?

Let’s turn down to the 5min chart in the next post

Thanks, Steve

5min DP buy nails the low !

OK, as we have already seen, because the 15min Charts was at DP support, the Advanced Traders among you should have been looking for automatic buy setups. As you can see, this DP buy on the 5min ES nailed the low of the day perfectly !!

The ES then rallied nicely to reach the first projected Profit target, where a nice +3.5R Profit was available (ignoring slippage and commission).

But do you all see how this DP buy was OK to consider, even though the STF was red, because it was also at 15min (larger degree) DP support as well......

Thanks, Steve

15 Charts for larger degree trend....

Hi Everybody,

Friday was another good example of why all the Advanced Traders among you should always keep an eye on DP (and WPT) support and resistance areas on the 15min Chart./ Here we can see that the DP on the 15min ES nailed the low of the day beautifully. This set the “larger degree” trend to up. As such, not only should you have then be focusing on buy setups, but this also gave you permission to look for shorter-term buys as the 15min DP low was coming in...........

For this let’s look at the ES 5 min chart in the next post.

Thanks, Steve

15min trend on the NQ

Hi Everybody,

We have already seen on the 3min NQ charts Standard Traders would have made money overall, but it would have been nice to avoid the losing trades yesterday, so let’s take a look at the 15min Chart to see whether that was possible.

Well, as you can see, “at the time” of the first 2 -1R sell setups the 15min NQ chart was on the way UP form a Wave (4) low into a Wave (5) high, so both these sells were “against” the 15min UP trend so could have been avoided by the Advanced Trader. But the TSD3 buy was “with” this 15min up trend so could have been taken., In fact, it could have been run slightly further, increasing its profits a bit.

Then the last buy was “after” the 15min Wave (5) high so again was “against” the new down trend should could have been avoided.

So, in this example, by using the 15min trend, the 3 losing trades could have been avoided and the one winner could have been made larger.....

I have to say, that using the 15min Charts is not this clear all the time (I wish it was), but when there is a clear and obvious picture, then the Advanced Traders should make use of it....

Thanks, Steve

15min trend anticipates the 3min DP sell

OK, as we have seen, the 15min TF was at DP resistance, so when this automatic DP sell came up on the 3min Chart, it was OK for the Advanced Traders among you to consider. This nailed the high of the day for you !

The Russell then declined nicely to reach the first project Profit target. At this level, although the STF was strong (beyond the strength band), we had a high volume (VSA) spike. Taking into considering how larger the profit was at this level (+10R), it would have been a good idea to look to protect this profit. This nailed the low beautifully !

The result was a massive +10R Profit (ignoring slippage and commission).

But what amazed me was how well the DP nailed the turns and as such enable you to capture such a huge profit. The Tools in MTPredictor are amazing sometimes....

Thanks, Steve

15min trend anticipates the 3min DP sell

Here is another perfect example, this time on the Russell Index (TF).

As we can see from the 15min TF charts, after the Russell had rallied off the DP low (which nails the low perfectly !), it reached a DP resistance level. So, knowing that the 15min Chart was at a DP resistance zone, and as such a high was possible. You were then OK to look for any sell signals on the 3min Chart.

So let’s now take a look at the 3min Russell and see what unfolded at this high............

Thanks, Steve

15min trend

Hi Everybody,

As we have already seen, there were a few losing trades on the 3min ES chart yesterday, but could these have been avoided ? Well this is where the 15min trend comes in.

As you will all have read in the Trading Course, the STF does a good job of the “larger degree trend” most of the time,. BUT (like all indicators) it is lagging in and around turns in the market. This when we use the DP’s and WPT’s. DP’s and WPT’s are “leading” indicators so they can be on the charts “before” the market even gets there, and as such can nail turns in the market beautifully.

Here we can see that the low on the 15min ES chart was nailed perfectly by the DP. This then set the 15min trend to up, therefore helping avoid the two losing 3min sells in the morning.......

Thanks, Steve

Absolutely amazing !!

Hi Everybody,

This was a trade I was following myself yesterday on the 3min FTSE, and shows the true power of MTPredictor.

Here we had a high on the 3min FTSE, where we had a “larger degree” Wave C, of which the Wave C swing “subdivided in a lesser 5 waves”. This is text book Elliott. Then the high unfolded at the coincidence of the DP and the Typical Wave C WPT – absolutely perfect.

I had the “initial target” at the DP low, and the FTSDE dropped straight into this level for a massive +10R Profit (ignoring slippage and commission).

It still amazes me how well this stuff works, once you truly understand what you are looking for, and shows the true power of MTPredictor once you become and experienced trader – Amazing !!

Thanks, Steve

My favourite setup

Hi Everybody,

Sorry for not posting for a few days, but I have been away on a well needed vacation.........

As we have seen in the Standard Blog, the 3min ES gave us a brilliant +10.4R Profit (ignoring slippage and commission), but it was against the red STF, so I would like to take a look at this now.

As I have explained many times before, because this trade catches the “first correction” against the “first swing” off an “important low”, it is very often “against” the STF (I cover this in the Trading Course as well). But as you can see, because we are catching the very end of the Wave (2) correction, we are looking to play the Wave (3) swing. And because Wave (3) is usually the strongest and longest swing, this setup represents the highest profit potential.

This is why this is my favourite trade and one I look for all the time.............

Thanks, Steve

DP nails the low !

Hi Everybody,

Friday was another example of the “Gap Open” play that I was talking about in my last post. As you can see, yet again the DP nailed the low just a few bars after the open off which a strong rally occurred. The only difference this time was that the gap was “closed” when the automatic TS3 sell came in, so this time it was a good idea to look to close the trade at the automatic signal. This was not the case the last time.

As you can see, this resulted in a nice +5R Profit (ignoring slippage and commission). Add that to all the other automatic trades that unfolded on Friday and Friday was a very good day indeed....

Thanks, Steve

A lovely Gap Open play on the ES

Hi Everybody,

For those of you who have read and studied the Trading Course, as well as followed this Blog for a while will know that when the markets “gap up or down” on the open, I look for areas of DP support or resistance for a reversal. This happens loads of times where the initial Gap Open is reve4rsed within a few bars of the open. This is exactly what happened yesterday on the 3min ES. Target is this the “opposing” DP zone.

As you can see, this higher DP nailed the high beautifully just before the ES started to decline just after the open. Then ES then continued to decline until it reached the opposing DP where a lovely +6R Profit (ignoring slippage and commission) was available.

As a PS, for those of you who are very observant will have noticed that the STF was “strong” as this target was reached, so “strictly” I should have been looking to “run” this short trade. And in fact, if the ATRStop was used, the profit would have been slightly higher at +7.7R. But wither way, this was a nice trade, and a great example of the Gap Opening play.

Thanks, Steve

Amazing Patterns Part 2

OK, as we have seen in the last post, the YM made a high at 13:00EST at DP resistance, but it is what happened next that amazed me. If you look at the chart, you can see how the YM made a decline from this high, but just look at the minor pattern – a minor 5 waves. This was then followed by a minor abc. This is perfect Elliott and as such this minor Wave C high was a great place for a new short trade.

This minor wave C high was also a Intermediate degree Wave (2) high, and as you should all know catching the Wave (2) is my “favourite trade”. The YM then made a normal 5 wave decline, and there was a lovely +4.4R Profit available at the Typical Wave 5 WPT (ignoring slippage and commission).

This just goes to show what amazing trades are available for those of you who take the time to learn how to become an Advanced Trader.

Thanks, Steve

Amazing Patterns

Hi Everybody,

How these markets unfold sometimes still amazes me, just look at this example on the 3min YM. Let’s start with the “overview”. Here we had the YM rally up into DP support and made a high at 13:00EST. While this could have been an opportunity for a short trade here to take advantage of the next 5 wave decline, it is what happen next that truly amazed me.

We will take a look at this in the next post.

Thanks, Steve

Advanced trade management...

Hi Everybody,

The TS3 sell on the Russell Index yesterday was a good example of how the more Advanced Traders among you can use the additional tools in MTPredictor to help in their Trade Management.

As you can see from the chart, the TS3 short trade on the Russell was “within a whisker” of the first main profit target, but it did not quite reach it. So how could have you managed the trade ? Well, we all should know that “impulsive” waves unfold in 5 swings, so what we can do is look at the decline from the TS3 sell using the minor Elliott waver to see the minor pattern. Here we can see that the TF was in the 5th wave, so we knew that this decline was probably nearing an and, even though it had not quite reached the main profit target.

So the sensible thing to do was to simply trail the stop at the bar highs. This would have banked a nice +4.7R Profit (ignoring slippage and commission). AS we have seen form all these posts, sometimes trading is about using a “sense” and feel for how the market is currently unfolding, rather than following a strict set of rules. This is why good trader, with experience, will always be able to outperform a computer that only can follow one set of rules. And in MTPredictor you have the tools to use to help you grow into that advanced and experienced trader.

Thanks, Steve

Advanced Analysis

Hi Everybody,

We have all seen the massive +8.5R Profit on the 3min YM that I posted on the standard Blog using the “standard” trade guidelines, but could an Advanced Traders squeezed out some more Profit on the trade ?

Well, yes, because the rally off the TS4 lows as a minor 5 waves, so when the Wave 5 high came in at WPT resistance on a high volume (VSA) spike, protecting an open +10.2R Profit (ignoring slippage and commission was the4 sensible course of action.

Also, note how the TS4 buy (ABC correction) came after a 5 wave rally. This gave extra confidence in the TS4 buy as well.

In MTPredictor you have the Advanced tools that not only give you move confidence in the setups, but also help you in their management.


Thanks, Steve

Stochastic Divergence

Hi Everybody,

A lot of traders like to use standard technical indicators, for example Stochastic Divergence. But what these standard indicator lack is the “price level” at which to anticipate a reversal. Well, this is where MTPredictor comes in with the DP level !

As we can see on this 3min NQ chart, we had lovely Stochastic divergence going into the 13:54EST high, but then we also go a red (sell) bar at DP resistance. This was the signal that a high was coming in and Advanced Traders should be preparing for a new short trade. This nailed the high before the NQ declined sharply.

Simply using the ATRStop would have locked in a lovely +9R Profit (ignoring slippage and commission).

But this shows how the tools in MTPredictor can enhance your use of the standard indicators that are available in the industry.

Thanks, Steve

15min UP trend

Hi Everybody,

As we have already seen, form the Standard Blog, the losing trades were on the short side yesterday and the Profits were on the long side. So could the 15min Charts have helped us ?

The answer is defiantly YES !

The 15min DP support just after the open can be clearly seen on the 15mion chart, where not only did the low come in at DPO support, but also we had an automatic DP buy setup. So this set the “larger degree” 15min trend to UP.

Therefore Advanced Traders among you would have avoided the losing short trades yesterday and also look to “run” and maximise the long trades

Thanks, Steve

PS, This has been a good example of how to use the 15min charts for the “larger degree trend” for your 3 and 5min trades.

TS3 sell nails the high !

OK, now we have seen that the 15min trend was down, let’s take a look at the 3min TF chart.

Here we had three attempts as selling the corrective rally off the low. The first two resulted in -1R losses, but the third nailed the high perfectly. The Russell then declined sharply form there to reach the first projected profit target perfectly. Again, on the 15min Chart, as a Wave C low (TS4 buy) was coming in, we should look to the first target and not the ATRStop, even though the STF was strong.

The result was a nice +6.7R Profit(ignoring slippage and commission). Even taking off the two -1R losses earlier, +4.7R Profit yesterday was a nice result, especially when the other e-minis where having a hard day. This is yet another reason why I say that users should follow all 4 of the US e-minis.

Thanks, Steve

Russell Index – 15min Chart

Hi Everybody,

AS we have seen, it was a hard day on the standard setups yesterday, but there were hints that the larger degree (15min) trend had turned down. If we look at the TF 15min Chart, we can see that a Wave 5 high had come in, so the Advanced Traders among you should have been on the lookout for short trades.

So let’s move down to the 3min Chart, to see what unfolded.

Thanks, Steve

DP form prior Wave 4 high

Hi Everybody,

This is a “refresh” to check how many of you have read the Trading Course, especially as I coved this in the last few week as well :)

If you all remember, in the Course I teach how the “initial move” off a Wave 5 low is the DP from the Prior Wave 4 high. So when this DP “aligns” with the Wave C WPT’s after a 3-swing ABC move from the Wave 5 low, then this represents a “high confidence” trade.

Well, that is exactly what we got on the 3min ES yesterday, where the TS4 sell also fell at this DP resistance zone, this gave extra confidence in the TS4 sell

Thanks, Steve

5min charts

I have said many time not to forget the 5min charts, that is because they are slightly longer time frames, their swings are slightly larger. In this case this cave projected targets “higher” than on the 5min Charts. Combine these higher targets with a break above the DP on the 3min chart, and again it could have helped you decide to let at least part of your position “run” into the close with the ATRStop.

There are too many people that get “too close” and try and “micro manage” charts with very short time frames, when in reality using slightly longer charts, like 5min actually let you capture some of the bigger moves, and as such gain larger profits.

I agree, this was a hard call to get right “at the time”, but even with “standard” trade management, the profit on this 5min long trade would have been approx +5.4R (ignoring slippage and commission) at the first 5min target.

Thanks, Steve

Signs of a strong trend

Hi Everybody,

This was a slightly tricky call, as it would have been a lot easier if the STF was strong, but then the market does now always give us what we want all the time !

But if you look at the 3min Chart, the market did shows signs of strength as it continued “above” the DP target level. Remember the DP stands for “decision point”, i.e. the point the market will make a decision to reverse or continue. Strength “beyond” a DP level usually indicates a continued trend.

With this in mind, you could have decided to let al least “part” of your long trade run with the ATRStop.

I know you had to make this decision “before” you got confirmation of strength beyond the DP, so was there anything else that would have help, lets take a look at the 5min chart in the next post.....

Thanks, Steve

2min ES Chart

Here is another “tip” for what I do here myself. When I have a confident picture of the “larger degree picture” like yesterday, I then aggressively look for any setup that falls in that direction. For this I use the Elliott Wave tool as well as the automatic setups, looking for ABC corrections.... But when I see an “manual” ABC pattern, I like to look at the “lower” time frame to “gain confidence” in the setup. Here I look for the “manual” ABC on the 3min Chart to be an “automatic” setup on the shorter term 2 or even 1min charts. I do not use these shorter term charts to actually trade from, I just use them for “confidence” in the pattern.

Here we had an automatic TS3 sell setup on the 2min ES at the same time as the manual ABC high on the 3min. In this way, we had extra confidence in the 3min ABC pattern. As you will have seen form the Standard Blog, this had you short as the ES continued to decline.

Thanks, Steve

24hr charts vs. day session

Hi Everybody,

As you will have read on the Standard Blog for today, I said that sometimes I look at the “24 hr” sessions as opposed to the “day session” (9:30 – 16:15 EDT) for the US e-minis. I normally only take a look at the 24hr session for larger degree support/resistance when there is no clear picture on the normal (9:30 – 16:15 EDT) charts.

Yesterday was a brilliant example of this, where the high yesterday came in right at 15min DP resistance on the 24hr chart. This set the larger degree trend to down, which then allowed you to focus on short trades as the markets declined yesterday.

So the guideline is, normally use the 9:30 – 16:15 EDT 15min charts, but if the picture is not clear, then just check the 24hr charts as well

Thanks, Steve

Two more amazing trades !

OK, if you missed the DP buy form the low of the day, then all the Advanced Traders among you should have got the TS1 buy that unfolded a bit later. As this was one of my “Holy Grail” setups. We should all know about these by now, where the abc unfolds as part of a Wave (2) correction. You then look to tarde the Wave 3 swing. And this was an absolutely perfect example as the “major low” was our perfect DP buy form the last post, and then the Wave 3 high stopped right at the Typical Wave 3 WPT – truly amazing !!

The result was a lovely +7.8R Profit (ignoring slippage and commission).........

Add this to the +8.7R as a “pyramid trade” as well as the +4.2R and +3.9R Profits from the standard trades earlier in the day and you have a possible +24R profit and all in just one day !!!

I don’t think that many people realize how absolutely brilliant this is, and how brilliantly MTPredictor did on nailing these trades for them. In a industry where there are so many rubbish trading systems around, I find it hard to fully get over to you all how brilliant days like this are and how well MTPredictor can do for you, once you take the time and make the effort to “learn” all that it has to offer !

Thanks, Steve

Two more amazing trades !

Hi Everybody,

we have already seen from the standard blog that the 3min YM gave us a nice +4.2R and +3.9R Profit, so the standard traders were already doing well on Friday. But, it was as the low of the day came in that the Advanced Traders had two more amazing trades.

First, there was the automatic DP buy that nailed the low of the day. This was not just a DP buy, it was also a Wave 5 low (at WPT support), as well as a perfect high volume (VSA) buy. So all the Advanced Traders among you should have been all over this low !

The YM then rallied strongly to reach the initial DP taerget5, where the STF was sting, so we look to “run” the trades further. Normally this means this ATRStop, but when we get such a huge profit as the Typical Wave 3 WPT is reached it seems sensible to lock in the massive +8.7R Profit (ignoring slippage and commission).

But the good trades do not stop there !!

Thanks, Steve