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