Learn to Day-Trade the Emini S&P and Euro Futures – live with a full-time trader.
This video is designed for educational purposes only and to show some of our trade plan setups to reinforce our daily trade plan review.
To successful trading,
TraderShark
Good evening traders, this is Brian with TraderShark.com, an educational website to learn how to trade the emini S&P futures, the Euro futures and the crude futures. I’m going to talk to you today about Tuesday and Wednesday, December 17th and December 18th. The week before Christmas.
The market opened up here at 1780.00 represented by this white dotted line. We generally don’t trade from 9:30 until 9:45. Coming out of the no trade zone we had a nice little push higher. Pull back. Thought we were going to continue higher and actually I forced myself out here at minus 8 ticks. Only to watch the market continue to go into a sideways motion or what we call a megaphone pattern. And the megaphone pattern is really not something you can recognize until after it’s already occurred. That’s creating higher highs and lower lows. And the only way to really play that is on the 5th break towards the downside. In this case just nothing seemed to be working. We did finally have a selloff into the lower side. Little pullback. Continuation. Got the first target off and second target stopped out early for a total of 6 ticks.
As we continue on into the lunchtime cautionary zone from 11:30 until 1:15 Eastern Standard Time. Generally it tends to be sideways to bullish during the lunchtime zone. Coming out of that lunchtime zone we had a nice little push higher. Pullback. Looking for a continuation. I didn’t really get a nice setup here. Setup seemed to work out nice right there at about 3:20 or so and got almost a full stop out at -12 ticks, so for the day we had a total of 3 trades, minus 14 ticks for the day. And then we went into the final cautionary trading zone at 10 minutes to 4.
Okay, so let’s go ahead and look at Wednesday FOMC announcement day. We didn’t expect much from yesterday or the day before FOMC announcement. And on the day of announcement we’ll generally see a push one way or the other. Actually we just saw a lot of sideways chop.
Had one opportunity here at about 10:00 for a shorting opportunity to get stopped out for minus 3 ticks. First target was hit got stopped out for minus 3. Continue on into the lunchtime cautionary trading zone with no trades this morning. As we worked our way towards the FOMC announcement at 2:00 Eastern Standard Time I want you to see the initial reaction was down. They sold off. This usually happens so fast, we don’t take advantage of that type of trade. We wait for the dust to settle.
Market took off, pulled back. Really expected this to be the selloff. Did not occur and the burst higher was not able to take advantage of it. This is more of a grind higher. And then once we reached our Shark band we had an opportunity to go short. Held on with 3 contracts, total of 33 ticks to the downside and then found support on another Shark band which you don’t see in this picture.
Working our way to the right-hand side and then right there about 2:30 another launch higher for a total of 14 ticks. Reaching up into the same Shark band we were talking about. Pull back, continuation lower for a total of 10 ticks on into the close and that was it for the day. 4 trades for a total of 54 ticks. And then we went into the final cautionary trading zone. I’m not expecting much more for the rest of the week.
I want to thank you for watching for more information on these type of trade setups or to learn more about the TraderShark trading methods, please visit TraderShark.com. Thank you. Have a great night and I’ll see you in the Shark Den tomorrow morning. Thank you.
Link to Video and Transcription
Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time. Past performance is not an indication of future results.
The Equity Indices products; ES rollover on Thursday the 12th at 8:30 am CST time from the December 2013 contract to the March 2014 contract. The month code for March is ‘H’.
We will be continuing to watch the December contract until the lunch time zone. After that, we will watch the December and March contract for the one with the highest volume. I do not usually trade the afternoon of contract rollover due to extreme volatility.
We will begin to trade the March 2014 contract on Friday. Please make sure both your charting and brokerage accounts are changed to the H4 contract, ESH4 or whatever format your platform uses.
Learn to Day-Trade the Emini S&P and Euro Futures – live with a full-time trader.
This video is designed for educational purposes only and to show some of our trade plan setups to reinforce our daily trade plan review.
To successful trading,
TraderShark
Good evening traders, this is Brian with TraderShark.com, an educational website to learn how to trade the emini S&P futures, the Euro, crude, and we’ll soon be adding gold to that. I want to thank you all for your patience; it’s been about a week and a half I think since I posted my last video. I recently moved from Orlando to Clermont, Florida. And with that move there is a lot of work involved. So I have not posted the videos. We are now grounded. The dust has settled and we’ll be posting these a minimum of three times a week. Hopefully try to get one every day.
I’m going to show you a higher timeframe chart to start out with. This is one day, from the start of the trading day, Friday, December 6th, 2013. This is the end of the day. And I want to show you just how the Shark bands are respected. Right here at 1801.25 is the opening price, and we quickly came down, did not quite touch our Shark band. Found congestion, consolidation here on our opening range. Dropped down for support. Continued on, got through the next Shark band. Again, this is within the opening range. Retraced, found support and worked its way back up to the next Shark band. Now this will make more sense on our lower timeframe chart. Let’s go ahead and check that out.
This is our lower timeframe chart. I want you to see right here at about 9:30 the market opened up, 1801.25 represented by this white dotted line. We had a nice little pullback into the open for a continuation down to a pro-range reversal. Got a total of 7 ticks on that particular trade. And then we had a lot of sideways motion. And as we continued back up through our moving average, a lot of consolidation area here within our opening range. And again, you can see what they were doing. Our internal indicators were telling us to stay out. Just a lot of sideways motion.
We finally broke away from our opening range down here, found support, retraced back up into our moving average for a continuation down in here. It actually penetrated our support level where we had what is called a Shark band. You saw that in the previous screen.
And then we had a nice opportunity to get long in through here. There was actually 3 opportunities to get long. There was actually a trendline wave trade counter-trend. There was a Fib trade. And there was a tidal wave trade. So depending on which trade you took you want to stay with the same parameters. A standard counter-trend trade we only go for 2 ticks and 4 ticks. Mostly because it’s a counter-trend. The Fib trade had its own profit targets there. I think we were at a total of 10 ticks on that trade. And the tidal wave trade yielded 28 to 32 ticks I think on that particular trade.
Broke through, worked our way back into the opening price. This right here is our lunchtime zone. Some traders prefer to trade it, I prefer not to. But I was still holding on to this position in the tidal wave trade for a continuation. Notice the sideways motion. Little bit of a break higher. Sideways motion, just like a runner after a long sprint, slows down. And right here, continued on up. Exit our trade right there around 1804, 1805, and 1806 for the high of the day.
And then here at 2:00, you’ll notice the vertical line. We generally don’t want to be holding on to any long positions, especially at the highs of the day. And this was another opportunity to short the market. This particular trade ran anywhere from 9 ticks, all the way out to a total of 16 ticks before a sell off from 2:00.
Again, it’s a pullback after a long run if they want to push this thing higher the market tends to pullback after that timeframe. And then we found support at a Shark band for continuation higher. And on into our final no trade zone of the day. So depending on when you exited or how long you held on to it, I did not take a final trade into the no trade zone.
To learn more about these and other more advanced trade setups, or to get a copy of the TraderShark trading manual, please visit TraderShark.com. Thank you. Have a great weekend and I’ll see you bright and early on Monday morning.
Link to Video and Transcription
Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time. Past performance is not an indication of future results.