RollerCoaster & ElliottWave
Quick Video using a live trade on Emini S&P500 Futures combining our RollerCoaster and ElliottWave trading indicator suites to achieve multiple trades in a single trading session. Below Video is the Trading Journal for the Elliottwave 5th wave trade I was discussing in the video with screenshots as Paul traded it live.
ElliottWave Trade as it Happened
5th Wave Trade on S&P500 Futures using the 3 minute timeframe. First of all, the rules for the entry on a 5th wave, that I mentioned on the above video, were all met. So next is the entry strategy! Firstly the long entry has to be above the 6/4 MA High (green MA on the chart below). We must also look left and observe any pivots that we would sensibly like to be over. In this case my entry was 1799.25, just above the pivot highlighted in yellow on the chart. Below this chart are the steps I took to manage the trade into the 5th wave target and take profit. For this trade, I trade 3 Micro Es contracts (My live trading account dome is included on all screen shots)
Making the Trade Risk Free!
Managing these 5th wave trades is pretty box standard for me. I wait until I get a Close above my 50% reward line (cyan line on chart below). In this case the instrument had a big move up and hit the 100% line and closed. This was the time to make the Trade Risk Free, 1 tick above the entry, at 2799.50 (As seen on the trading dome on the chart below.
Next up, “Two Candle Behind Trade Management”
As the price was reaching the previous Wave 3 pivot, which is always going to act as a little resistance, I started to employ my “2 Candles behind trade management strategy” – So as a candle closes I take this and the previous candle and then lace the stop 1 tick below that second candles low. In this case it was 2800.25 as can be seen on the chart and dome below.
Continuing the Trade Management
Discipline and patience is now key when using this trade management strategy for 5th wave moves. You have to give the trade room to breath but lock in profit along the way. So on this trade the next candle closed and the new candle made a slightly new high and our software labelled the 5th wave. No panic, I just moved the stop up, 1 tick below the low of the next candle up from my previous stop. As can be seen below, new trailing stop position was at 2803.75, locking in 18 Ticks of Profit!
Still Staying Disciplined on Trade Management
AS the next candle was closing the price was getting real close to our automated 5th wave target, but I kept disciplined and adjusted may stop 1 tick below the next candle up from my previous stop position. Now the Stop was at the 100% profit line at 2805, locking in 23 ticks of profit as per the chart below…
Elliottwave 5th wave target zone Hit – Profit Taken
With the Next Candle in the 5th Wave Zone, I flattened my trade and took profit of $157.50 on 3 Contracts of Micro ES. The trade lasted approximately 27 minutes! This was during the pre-market session leading up to the US markets open and we find that 80% of our 5th wave trades have a correction after hitting our automated target zone. So staying disciplined and not greedy it is a simple choice to take profit! 40 Ticks Profit and a text book trade. As per dome and chart below.
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