**TS3 (Wave C) example: SHORT 3min. (Mar 04) NQ (e-mini Nasdaq-100®) - Mar 8 04**

This example shows how the new MTPredictor Real-time 4.0 simplifies the identification of potential low risk/high return trade set-ups on short-term and intraday charts.

Once this chart was drawn, the software updated the analysis automatically and displayed this potential trade set-up. Please see the chart below:

As shown above, on Mar 8 2004 the software automatically identified the three set-up criteria:

An ABC correction up, for a potential Wave C sell set-up
The corresponding minimum Wave C WPT (Wave Price Target) area (small orange zone)
The red sell reversal bar (the last price bar on the above chart).

All this analysis is automatically refreshed and displayed on the chart for the trader to assess.

This set-up was also found in the new RT 4.0 Trade Scanner, which works in the background, scanning all the issues selected on their own individual timeframes, simultaneously.

Clearly, the NQ (on this 3min. timeframe) appeared to be at an ideal price zone (minimum Wave C WPT) for this Wave C to end. As such, preparation can be made for a high, anticipating an NQ decline from here.

The Analyze function automatically evaluates the set-up, displays the Risk/Reward analysis on the chart and establishes that the first profit target (large orange zone) would generate a return of at least 2-3x the initial $ risk (blue zone above) needed to take the trade. Using the Initial Risk Calculator module to determine the position size to trade within the fund's risk parameters, a new short position should be entered on a trade below the sell reversal bar low.

For more information on the Wave C trade set-up please click here

Let's see how it turned out:

As can be seen, the NQ on this 3min. chart declined sharply off the Wave C high. In fact, the decline continued until the ES reached the larger-degree Typical Wave C WPT profit target (pink zone above). Using Standard trade management guidelines, trailing a protective buy stop on initial positions once the NQ had reached this profit target would have resulted in a profit of approximately 7.5 x the initial risk (excluding slippage and commissions).

However, Advanced traders were able to take more out of this trade. As outlined in the advanced techniques in the MTPredictor Trading/training Course, partial profits on multiple positions can be taken at successive profit targets. In this example, additional profits could be taken at a lower profit target (as projected by the software on Feb 24). Please see below:

As can be seen, the NQ continued to decline, reaching the larger-degree Maximum Wave 3WPT profit target (pink zone above). Using Advanced trade management guidelines, trailing a protective buy stop on multiple positions once the NQ had reached this profit target would have resulted in a profit of approximately 13.7 x the initial risk (excluding slippage and commissions).

However, the NQ continued to decline even further:

The final position unit could have been managed using the preferred 20-period exponential moving average. This would have kept the trader short all day and would have resulted in a profit of approximately 22x the initial risk (excluding slippage and commissions).

Does your current trading program identify potential trade set-ups with such impressive Risk/Reward profiles as quickly and decisively as this?

If not, then it is time to invest in the MTPREDICTOR 4.0 series!

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