DP’s on the GBP 60min Chart

Hi Everybody,

The DP’s (Decision Points) are very useful for pinpointing areas of support / resistance. These work particularly well in a narrow range bound time lime we have had recently on the 60min GBPUSD Chart.

When there is a “fake out”, a rally in this case, notice how the DP pinpointed the area where the rally reversed. The GBP then declined straight down in opposing DP support.

As such, there was the opportunity for a nice +3.8R Profit (ignoring slippage and commission) as this decline unfolded

Thanks, Steve

Don’t forget the longer term Charts

Hi Everybody,

Just as I said in the “Day Trading” Blog, sometimes the longer time frames charts give you great results. A good example is on the 240min GBPUSD, as you can see, the recent TS3 sell has just reached the first projected profit target for a very nice +5.2R Profit (ignoring slippage and commission)

Again, another good example on why you should not forget the longer time frames charts, particularly on FOREX

Thanks, Steve

Absolutely Perfect !

Hi Everybody....

Before you read this post, please re-read the post on the 15min GBPJYP below where I “forecasted” IN ADVANCE, where I thought the TS3 long trade should go. Yes (and I have to stress this again), this was posted IN ADVANCE, before the market unfolded. So no hindsight at all !!

As you can see, the GBPJPY did indeed rally and then make a high exactly at the Typical Wave 3 WPT, EXACTLY as I said it would :-)

The result was a lovely +7.2R Profit (ignoring slippage and commission).

I hope this has been a good example for you all that shows when (and only when) shorter terms charts can be used on FOREX and then how well they work, as long as the pattern is good and it falls in line with the larger degree position.

Thanks, Steve

Advanced Analysis using the Elliott Wave module

Hi Everybody,

MTPredictor v6.5 contains many modules that the Advanced Trader can use. These include the Elliott Wave module that uses my “unique” Isolation Approach to Elliott Wave.

Here is a good example of not only how the trade entry (at the Wave C high) could have been identified, but also how the Elliott Wave module, helped manage the trade with profits being taken at the maximum Wave 5 WPT.

The Elliott Wave module is only available in the full MTPredictor v6.5

Thanks, Steve

The only time to look to shorter term Charts

Hi Everybody,

As I said in the post below, FOREX is best on the longer term charts. However, for the more Advanced Traders among you, you can consider shorter-term charts “only” when it “fits in” with the larger degree chart “and” the pattern is “clear”.

Here is a good example on the GBPJPY again, this time using the 15min Chart. BUT the big difference here is that we have “confidence” that a important low is now in place on the “larger degree Charts, therefore a rally is anticipated on this short term 5min Chart.

“Ideally” a rally into the DP that coincides with the Typical Wave 3 WPT would be perfect, but we will have to wait and see....

Again the best time frames for FOREX are normally 60, 240, 480 and Daily..............

Thanks

Steve

GBPJPY – 480min short

Hi Everybody,

This post is a reminder not to forget the longer time frames when trading FOREX.

Forex can be a very choppy and unpredictable market on the very short time frames, so very often the best trades can be found on longer time frames, like 60min, 240min and here is a great example on the 480min Chart of the GBPJPY.

As you can see, this caught the recent decline beautifully....

Thanks

Steve

GBPUSD – 240min TS3 long

Hi Everybody,

The GBPUSD on a 240min Chart has just completed a nice +5R Profit (ignoring slippage and commission). Yes there was a -1R loss first, but as usual, this was kept small, a lot smaller than the +5R Profit, and that is what makes money over time, keeping the losses small and the profits large....

Thanks

Steve

Larger Degree trend - Video

Hi Everybody,

I know a lot of you can find the transition from “standard trader”, (where you follow the STF colour and just look at the automatic setups), to becoming a more “advanced trader”, (that looks at the larger degree chart, using the DP levels, as well as moving onto more advanced manual analysis), a little tricky. As with learning any new skill, this transition takes time.

My advice is to keep following my Blog, re-reading the Trading Course, watching the videos and most of all, practice and study your charts.

It took me many years to become a expert trader, so to expect this in just a few days or weeks is silly. MTPredictor is a very powerful piece of software. We have the automatic setups, and this is where most of you start. But then, as you learn more, you begin to use more modules and routines in the software. The Russell Index trade (shown below) is a great example of how the more experienced trader can use the other modules in the software to improve their results. So learning to become a better and more experience trader is more of a “journey” rather than a once stop solution.

This Blog will help in that journey, so today I have put together a help video on the larger degree trend for you:

http://www.mtpredictor.com/help/videos/LargerDegreeTrend/LargerDegreeTrend.html

This will help show you how I use the larger degree charts to determine the larger degree trend

Thanks, Steve

Position Sizing

Hi Everybody,

Here is a great example of how correct Position sizing is used in MTPredictor to keep your losses small. If you look at the attached JPYUSD 60min Chart, you can see how there was first a losing trade, but this was kept small at just -1R (or risk until). Then there was another sell setup (that nailed the very bar of the high), but again correct Position Sizing kept the initial risk on this small.

The result was that the eventual Profit on this second trade, as much larger than the loss on the first trade. Meaning that overall, even after a losing tarde money was made overall.

This is the key to successful trading - keeping your Losses small and Profits large. If you ever were struggling with how to do this, then the correct Position Sizing used in MTPredictor will help you :-)

Thanks

Steve

GBPJPY – update

Hi Everybody,

In my last post we saw how the GBPJPY 60min Chart had just made a Wave 5 high. Well, from the Trading Course, what should we be looking for after a competed Wave 5 high ?

Exactly, an ABC “correction”............

And that is what unfold, with the low right at the minimum Wave C WPT. The GBPJPY has since rallied nicely off this low.

Thanks

Steve

GBPJPY – analysis part 3

Using our more normal DP and Intermediate degree Elliott Waves, we had support at the DP.

The GBPJPY then rallied strongly off that low. But did you all notice in the post below that I included the Typical Wave 3 WPT on the major degree ? Well that was to show how this major Wave 3 rally “sub divided” into 5 waves. This is classic Elliott Wave.

A nice +4R Profit (ignoring slippage and commission) was available as the minimum Wave 5 WPT was reached.

Steve

GBPJPY – analysis part 2

OK, now we had the larger degree DP support, we need to look for a low risk buying opportunity.

Using the Major waves, a possible Wave 2orB unfolded after an initial rally then decline off the DP support. This was worth further investigation.

Steve

GBPJPY – analysis

Hi Everybody,

Today I would like to look at how to Analyze a Cross rate “from the top down”. As usual, we start with the larger degree trend. We are looking for areas of support / resistance. Once we have found there, we can then move down to the shorter time frame to see if a low risk setup appears.

So on the GBPJPY let’s start with the 240min chart. Here can you see how there was DP support a while ago, this set the larger degree trend to up, so now let’s move forward to the shorter term, 60min chart and look for a setup.

Steve

Now for the Advanced Traders.....

The Advanced Traders among you will know (form carefully study of the Trading Course), that the “initial target” from a Wave C low is the DP from the prior minor Wave B swing. This was hit on the 240min chart (post below) perfectly.

So this was the perfect place to look to lock in a massive +9.9R Profit at this same DP on the 60min Chart.

So there we have it, another +9R Profit on FOREX in the last few days using MTPredictor

Steve

Larger degree trend

As you can see, the 60min DP buy came at a 240min Wave C low, so fitted in perfectly with the larger degree tend. Also the DP was at a Wave 5 low on the 60min Chart (not shown). As such, this was a good trade to consider.........

Steve

DP buy on the GBPJPY 60min

Hi Everybody,

Here is another great example on the 60min Chart of the GBPJPY, where an automatic DP buy unfolded recently. The STF was strong as the first target was reached so the “standard” traders among you would have used the ATRStop from there.

The result – a very nice +7.4R Profit (ignoring slippage and commission)

But what of the larger degree trend ?

Steve

But what of the larger degree trend

As you should all know by now, we always have to look first at the larger degree trend to see how the trades “fit in”. On the 240min FOREX , I then look to the 480min, then Daily charts......

As you can see here, the Daily GBPJPY had just put in a nice Wave C low, with the low right at the typical Wave C WPT, as such the ABC low was “in the direct of” the new Daily up trend............

Thanks, Steve

Brilliant rally off the lows

Hi Everybody,.

Here is a great example that unfolded while I was away on vacation on the 240min GBPJPY Chart. An ABC low, off which a 5-wave rally unfolded. If you look at the chart, you can see how this 5 wave rally not only reached the initial DP target, but also how the rally unfolded in 5-waves with the high right at the Typical Wave 5 WPT. As such this was the perfect place look to lock in Profits for a massive +9.8R Profit (ignoring slippage and commission).

I still find it amazing when markets unfold in such perfect patterns like this again and again :-)

Thanks, Steve

Pop Quiz – the answer part 2

And as you can see, by moving your stop to break-even quicker ion this 60min long trade would have avoided an otherwise losing trade............

I hope this has been a good example on a setup that was in the process of unfolding (so I did not know the outcome :-) )

Steve

Pop Quiz – the answer

Hi Everybody,

Here is the 240min Chart, which is the “larger degree” chart to the 60min in the last post. As you can see, the JPYUSD had just put in a Wave C high, so the “larger degree” trend was now down, making the TS4 buy on the 60min chart “against” this larger degree trend.

An when a trade is against (or unsure) the larger degree trend and you want to take it you must protect it quicker using the 100% initial risk guideline.

OK, onto the 60min chart in the next post

Steve

Pop quiz

Here is a quick pop quiz for you all :-)

The JPYUSD 60 has just given a TS4 buy setup. BUT, and this is for you just to think about yourselves, please do not email me, on this long trade, should you be using the 100% initial risk level to bring your stop to break-even or not.

Again, please do not email me with your thoughts, just look at the longer term charts yourselves and decide.

Thanks

Steve

EUR – 60min Chart

Here is another example, this time on the 60min EURUSD Chart.

Here the TS1 sell unfolded nicely, but this was “against” the larger degree up trend, so you should not have been looking to “run” this short trade, but bank the profits early, either as soon as the first projected profit target came in, but especially when a DP buy setup came in a little later.

Thanks

Steve

100% initial risk level

Hi Everybody,

For those of you who have read my DAX post on the Day Trading Blog will have seen me talk about when to use the 10% initial risk guideline. Well here is a good example of when to use it – when you are “against” the larger degree trend.

Here this “manual” DP sell on the 60min AUDUSD chart made a nice +3.6R Profit (ignoring slippage and commission), but it was against the larger degree 240min chart. When this happens or you are unsure of the larger degree pattern, then as soon as the trade exceeds the 10% initial risk level, move your protective stop to break-even. This means you are protected quicker....

Thanks

Steve

GBPUSD – 240min Chart

Hi Everybody,

Well it is nice to see the GBPUSD 240min reach the projected DP target I had in yesterdays post :-)

I hope this has been yet another good example of how the DP’s can be used on your FOREX Charts............

Steve

GBPUSD – 240min Chart

Hi Everybody,

Any of you wondering why the GBPUSD has been rallying ? Well, it is because of the recent DP support, please see the chart to the right. Can you all see how the DP nailed the low perfectly for you :-)

Any longs off this low are now protected as a “break-even” trade as the market has now rallied past the 100% initial risk level.

But this is yet another example of how well the DP provides support and resistance in the FOREX markets.

Thanks, Steve

JPYUSD – Advanced on the 60min

As a PS for the Advanced Traders among you on the original 60min JPY Chart.

Do you see how the rally into the high also unfolded in 5-wave, with the high at the Typical Wave 3 WPT. This was another reason to look to bank profits at this level.

Thanks, Steve

JPYUSD – Check on 240min Chart

As I said in the post below, you should always check the larger degree trend. Please see the chart to the right. Do you all see how the Typical Wave 3 WPT target was “in the same area as” the DP target on this 240min chart. Therefore you should have been looking to run your 60min long into this larger degree target.

This is how “multiple time frames fit together”, and as such was one of the reason to run your 60min long into the higher (Wave 3) price target...

Thanks, Steve

JPYUSD – TS1 long on the 60min

Hi Everybody,

I hope that you always check the “higher” time frame when you are look for (and then managing) your trades ? A great example was the recent TS1 long on the JPYUSD 60min chart.

As you can see, the long trade exceeded the two initial (Wave C) targets to reach the Typical Wave 3 WPT, where a profit of +11.9R (ignoring slippage and commission) was available.

So why look to this further out target ? Well there are two main reasons, first, the TS1 is usually the Wave (2) or larger degree, so this is “usually” followed by a strong Wave (3) type swing.... and secondly the larger degree trend, see next post.

Thanks, Steve

GBPUSD – Update

Hi Everybody,

It is nice to see the 60-min GBP continue to decline following my last post :-)

As you can see, the GBP has pasted the first DP support zone only to reach the second.

But – how does this short trade “fit in” with the larger degree trend ? I will let you all draw the 240min Chart to see the larger degree DP’s

Thanks

Steve

GBPUSD – manual DP’s

Hi Everybody,

Yesterday I posted a 60min Chart of the GBPUSD, showing a “manual DP” as a profit target for a manual long trade. Well, here we are 24hrs later and that DP (posted “at the time”) nailed the high perfectly........... No hindsight there :-)

So this is what I am trying to show – The manual DP’s work very well on FOREX Charts, so should become part of your daily analysis as well as just the automatic setups.

Thanks

Steve

GBPUSD – manual DP’s

Hi Everybody,

Here is a great example of what I mean by using the “manual” DP’s on FOREX charts. Can you see how the recent rally on this 60min GBPUSD chart started right from DP support, and has now just reached the “opposing” DP as an initial target.

Notice the triple divergence on the Stochastic as well adding weight to the low at DP support.

Thanks, Steve

GBPJPY – DP low Part 2

As with all charts it is always very important to see how your analysis “fist in” with the larger degree trend, this is particularly important with manual DP’s.

As you can see in this example, the 60min DP is actually at a 240min Wave C low, so support is confirmed. Obviously the market can do as it wishes, that why all traders have to have stops in place, but at least we have the back up of the larger degree chart position.

Thanks, Steve

GBPJPY – DP low

Hi Everybody,

Welcome to this new Blog where I will take a look and follow trader on FOREX specifically.............

I would like to start with the GBPJPY 60min Chart. With FOREX you have to use the manual DP’s a lot more and they do catch turns very nicely

As you can see, we have DP support on the GBPJPY, so let’s see whether the current rally can continue

Thanks, Steve