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

Larger degree trend (15min Charts)

Hi Everybody,

As we have already seen from the main blog, we had a massive +10.8R Profit on the 3min ES as the markets collapsed into the close, so did the 15min Chart help us here ?

Well, the answer is a definite yes. If you look at the 15min ES, you can see how we had a TS3 sell earlier in the day. This set the “larger degree trend” to down. This then gave us extra confidence in the 3min TS1 short trade and also would have told us that because the larger degree trend was down to look to “run” any short trades.

The larger degree trend picture is not always clear, but when it is (like yesterday) make the best of it. It is not every day that we get massive +10R trades !

Thanks, Steve