Thank you for the chart. I guess that the supply/demand levels and the decision points work in a similar way. They are a place where the market lets you know what it is doing. I guess that's why it is called a decision point, it is a point where the market trend could change or carry on thus giving you reason to enter a trade or hold off from doing so. The advantage of waiting for the wave 3 setup is that it gives you confidence that the market is heading in a distinct direction and not whipsawing in a range.
There is a trade on the 9th November that doesn't follow the guidelines of this setup to the letter but maybe is an useful example of a decision point as a place to find an entry into a trend.
There was a high on the 7th November and prices fell afterwards. If you wanted to get into the downtrend you would want to do so at larger degree resistance. In this example there were 4 trades on the 2 min chart, the first two were losses but the 2nd two were profitable. I doubt I would have traded this but these trade signals have a passing similarity to the previous posts on this thread and are worth sharing.
This trade on the 19th November carries on the theme from the previous post; There was a major low and now you are looking to go long.
There are three trade signals on the 2 min chart and one on the 3 min chart. It's up to you and your personal style of trading to consider which you would take and on what timeframe. When managing multiple trades at the same time I do not want to take a loss than is greater than my initial stake. Therefore for each new trade, bring the stop loss level of earlier trades up to breakeven.
This is a good example of how allowing a trade to run with an atr stop can increase your overall profits, rather than exiting at a preset target.
November's stats are a mixture of trade types. Two speculative examples for advanced traders and some standard plays. The trades occurred on the 1st, 9th, 19th and 26th. The 9th and 19th were the speculative examples. Some of the trades may have moved too quickly to be entered and that does reduce the effectiveness of this approach given the low number of opportunities per month.
9 trades, 66% winners.
Exit at ATR for a total of 63.1R
2 trades, 100% win
Exit at ATR for 22.6R
2 trades, 50% win
Exit at ATR for 8.3R
This is an exceptional month and results may vary over different markets. I am aware of another trader who used this approach for the NQ, 6B and 6E. In July his monthly total was -2R, in August it +31R. I believe there has been little activity in December so its monthly total may be close to nil. It may require an actively traded market with sufficient volume.
"If we don't loosen up some money, this sucker is going down." -GW Bush, 2008
“Lack of proof that something is true does not prove that it is not true - when you want to believe.” -Humpty Dumpty, 2014
“The greatest shortcoming of the human race is our inability to understand the exponential function.” Prof. Albert Bartlett
Last edited by Zondor; January 1st, 2013 at 02:51 PM.
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I can't see any difference to vendor advertising too. If jorune said, all of the stuff is also shown on the MTP marketing channels, so there is no need to duplicate this at BigMike. I'm still curious why MTP is the own trading systems vendor at "Platforms and Indicators" main page. I hope that this isn't an sponsored link. But i'm sure BigMike has everything under control and verified this before.
I would like to say a Thank you to jorune for posting his analysis and work with MTPredictor. It is good to see MTPredictor customers using this section in Big Mike's Forum for sharing MTPredictor analysis and starting MTPredictor discussions...............Thanks
Last edited by Griff1; January 2nd, 2013 at 03:26 PM.
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