Busy day in the E-minis

[Matt Bowen]

The Russell 2000 wins the Trade of the day with an afternoon sell signal. However, lets first look at the trend on the 60-minute chart and find out why we are only looking at short signals and what other signals developed.

[Matt Bowen]

Nasdaq kicks off the first trade..

[Matt Bowen]

Followed by two Breakeven ES trades...

[Matt Bowen]

The final trade....Russell 2000 with this afternoon sell signal.

[stevej]

Matt,

I don't follow this.

Save for the Russell trade the R/R is less than 2 - thus no trade.

On the Russell the Typ WPT is shown in the calculator as 3.8 whereas on the chart it is shown in the centre of the blue 2-3 RR band.

Do I misunderstand?

Steve

[Matt Bowen]

Hi Stevej,

Save for the Russell trade the R/R is less than 2 - thus no trade.

Huh? Call me...in the office I'll be happy to go over this with you. The Typical Wave C = is 2.3 (see chart) and the top of the 2-3 (Blue Box) makes this a 2/1 RR trade. I'm not sure how you came up with less than 2 RR on this trade?

[Matt Bowen]

I like the above messages as it shows how to properly "Directional Trade"...