Very Nice Long

9/2/2010

Today the TF had a very nice long signal. The TF opened up and completed yesterday's move up then had a very calculated correction. After the correction we are looking for the next green bar to tell us to enter the trade. Even getting filled at the top of the green bar the risk was 1.5 and the TF rallied 7 points into the close hitting the 631.90 minor wave target.

Even if you are a scalper it is very important to know to calculate the waves on the minute charts so you know your are scalping in the right direction. We know that most traders are only looking at small scalper charts but doing this you have more risk of trading against the trend and this will kill most traders confidence because only looking at the small time frame you are actually trading 75% counter trend and this is very risky.

Once the long signal fired off the bars stayed green all the way up for added confirmation to hold the trade or at least know NOT to go short inside the long signal.

Trading is not only learning what to do it is also learning what not to do. If you can know the direction it will make it easier to focus on the entry and then focus on managing the trade not talking yourself out of holding the trade!

Happy Trading,

www.eMiniSchool.com