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