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,
Good evening traders, this is Brian with TraderShark.com, an educational website to learn how to trade the emini S&P futures. Today is Friday, September 28th, 2012.
The market opened up this morning at 1435.5 represented by this white dotted line. We generally don’t trade from 9:30 to 9:45. It’s a period of choppiness and the bulls and the bears trying to determine who’s going to take control today. I did actually have, the one exception to the rule is we’ll take a trade in the direction of the half gap fill if it sets up. It did set up in this case, however I didn’t have a momentum indicator with me and as a result I took a full stop out. So I know a lot of people had been expecting me to get caught one of these days. And I did. I got a full stop out here, minus 16 ticks. But you can’t let that affect you. You got to go on for the rest of the day.
Coming out of the no trade zone here at 9:45 we had a nice opportunity to get short. I did not get into this. I was pretty much waiting to see how price action was going to materialize. We just came after a 9:45 news report and then we’re going into a consumer sentiment report at 9:55, so I didn’t want to play around that close to the news reports.
Coming out of the 10:00 timeframe we blew through our moving average. Pulled back. Another opportunity to get long. Got target 1 off. Got stopped out for minus 2 ticks. As we continued on we saw price action drop below the moving averages. Now we had a trend break. So our trendline should be 2 ticks and 8 ticks. And in this case I scaled out a little bit early for 2 ticks and 6. Took a total of 8 ticks on that trade.
And as we continued forward, you notice how price action just kind of continued to revolve around this moving average. So we had a nice little wedge forming. Okay, we don’t know what’s going on on the right-hand side of the screen. But there’s 1, 2, 3, 4, 5, touches and then a breakout. We weren’t really sure whether this was a fake out break out or not, you know, it came back up and taught. We had a kiss good bye here for a continuation to the downside. Another setup on a momentum indicator. Went short. Did a little bit of flinching. No targets hit. And you know what, I just, bottom line is I got scared out. I didn’t feel comfortable with this sideways movement and the chop that I saw with other indicators. So I flattened out for zero. If I held on, probably would have hit my target 1 and target 2.
Our no trade zone is from 11:30 until 1:15 Eastern Standard Time. Now I call it a no trade zone. I don’t trade in it. However, our indicators set up and are still successful. So I’m not trading it. If you choose to trade it that’s a prerogative. I want you to see a nice break through the moving averages. Pullback. Continuation. And this thing just took off.
Coming out of the no trade zone the continuation to the upside was quite apparent, but there was no pullbacks so it really didn’t give me an opportunity to get in. I was looking to get long in through here. However, we started to get bordered by the clock and I do watch the clock. At 2:00 we take no further long positions we want to be out of any long positions by 2:00. Found a nice clean setup here. Momentum gave us a nice wave trade setup. Target 1 and target 2 were hit. In this particular case 4 ticks on the first target, 8 ticks on the second target. Total of 12 ticks with 2 contracts.
Broke through to the downside. Had a little bit of a pullback. Thought we may have an extension. Target 1 was hit, got stopped out for minus 2 ticks. As we continued on into the day each one of these met with pullbacks, which stay below the moving averages. Pullback. Stay below the moving averages. You could have scalped out coming back through getting ready to go into the close of the day breaking through. Working our way right back towards opening price. When you’re in within 1 point of opening price you know that just tends to be a choppy timeframe. And we close up the week.
I want to thank you for watching. To learn more about these and more advanced trade setups or to get a copy of the Trader Shark trading manual, please visit TraderShark.com. Thank you. Have a great weekend and I’ll see you 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.