Gap Open Play

Hi Everybody,

As we have seen, the Standard Traders had a quiet day yesterday with few automatic setups. This is where the a little knowledge comes in for the Advanced Traders among you.

I have taken about the “Gap Open” play before. This is where we look for a market to reverse at DP sup[port/resistance shortly after the open. As you can see, we had a perfect example of this on the 3min ES yesterday. The ES then rallied nicely to the opposing DP, where a nice +2.8R Profit (ignoring slip[page and commission) was available.

This is a particularly good play when it “falls in line with” the larger degree trend, as this one did (as we say yesterday, the 15min ES was up).

Thanks, Steve

3min chart Part 2

Moving onto the afternoon on the 3min Chart. We have already seen that we had an “automatic” DP buy on the 3min YM, “and” we have also seen that the 15min ES charts was potting in a TS3 buy, so when the 3min ES made a low at DP support on a high volume (VSA) bar, this was the sign to go long.

As the 15min trend was up, this long should have been run into the close (avoiding the TS3 sell), this would have added another +2.5R Profit (ignoring slippage and commission) to the +1.8R Profit from the morning, making a +4R Day overall...........

Now do you see why I spend so much time trying to “educate” you all to help you become better traders.............. MTPredictor has the tools to find some great trades, you just need to take the time, and make the effort to “learn” how to use them !

Thanks, Steve

3min chart

OK, now we now that the “larger degree” trend was down in the first part of the day, this would have helped us “avoid” the first -1R long trade, then we could have considered the TS1 short trades.

As you can see, here were would have started with two -1R losses, but then after the high came in the ES decline nicely, for a potential +3.8R Profit (ignoring slippage and commission) as the TS3 buy came in. So -2R +3.8R = +1.8R so far.

Lets now take a look at the rally in the afternoon...........

Thanks, Steve

Larger degree trend

OK, as we have seen on the Standard Blog, the 3min ES had a hard day, so now let’s take a look with Advanced eyes !

As usual, let’s start with the larger degree trend using the 15min Chart. As we can see here, the Gap Up took the 15min ES right into the Typical Wave 3 WPT resistance zone, so we should have been looking for sell setups on the 3min Chart.

Then later in the day, a TS3 buy came in, so we should have swapped to looking at buy setups. So let’s now move down to the 3min chart to see what trades there were....

Thanks, Steve

hybrid trade management strategy

Hi Everybody,

On a day like yesterday some Advanced Traders may have looked to trade the TS3 sell in the 3min Russell as a “split position”. This is something Tony talks about as a “hybrid trade management strategy”, where you split your position to two, and manage the first aggressively, but look to let your second half “run”.

This would have been able to take advantage as the Markets entered free fall yesterday..............

Thanks, Steve

ABC’s

Hi Everybody,

Here is another great example from just this morning, of what I was talking about in the post below (please read first), where we had a good looking minor abc that was then followed by a sharp move.

This time on the 3min FST and for a nice +5.7R Profit (ignoring slippage and commission)

Thanks, Steve

PS, Chart using the new MTP RT add-ons for NinjaTrader 7

ABC’s

Hi Everybody,

Yesterday was a good example of how you can use the Elliott Wave tool “manually” to help find additional trade setups. We all know that the ABC is a pattern then once completes signals to continuation of the prior trend. And as sch represents a good “low $ risk” trade entry point. Therefore, if, you feel that the market is in a strong trend, then you can look for “minor” abc corrections.

There were a coups of good example yesterday, so let’s take a look at the 3min YM. Here we can see that the YM made a minor ABC, completing at 10:57EST. This nailed the low perfectly for you. The YM then rallied strongly from there................

A simple trade management strategy is to use the ATRStop, the that followed the market up for a nice +7.9R Profit (ignoring slippage and commission).....

Yet another example of how, with some experience, the tools in MTPredictor can be used to uncover some great trades.

Thanks, Steve