Learn to Day-Trade the Emini S&P Futures
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Trade Entry Question – for Aug 10th

TraderShark,

For my education I just watched the last daily video and you are showing a trade at 11:25 on Fridays video for 16 ticks but

1. I don’t understand what the entry is?
2. How could you go long when entry is under the Moving Avgs and in a tangled net area
3. From where the entry is, there is only an 11 tick move up so thats a max of 13 (assuming you bought the low of the bar shown and sold out at the high of the no trade zone and sat through a pull back to your entry) ?

Look forward to your reply
Regards
Simon

———————-

Hi Simon,

Thank you for the great question. I welcome the critique. It only helps both of us get stronger and help improve explanations. You will never offend me by asking questions and hopefully others will learn from this also.

I was talking everyone through this trade. We have black and white methods of trade setups, however, we also have to apply art form. In this case, we did not have a so called Black and White trade. I called the Green Dot out and said, we are below the MA’s, I’m going to wait.

We seldom take trades against the MA’s. However, never say never, as long as we have a compelling reason to go for it, we may have an opportunity to get into a good trade setup a little early.

“This morning gave us the tone of a market that was going to make a larger move by simply keeping the opening range low. We had a 3.5 pt opening range. Notice the breakout of the range and then the pullback. At the pullback, I was looking for a long entry. It took a couple hours, but it did eventually develop into a trade opportunity.”

Entry was after the Wave Trade setup, the green dot showed below the MA’s, so we waited. Then when the continuation of the bounce from the Shark Band confirmed, I was looking for an opportunity to jump on long. I waited for a continuation of the move just above to two primary MA’s. While the pullback to the MA’s was in a Tangled Net. The potential to go higher presented itself. Remember 70% of the time, moves in the lunchtime NTZ will move higher. The Tangled Net does not mean don’t trade, it simply means we tend to see a more choppy environment.

Did price actually get to overbought territory in order to consider a clear black and white long? No… but it was very close and was all the market was going to give us. There was no other way to explain this, except to step back to a bigger picture or time frame. This is exactly where I was saying aggressive traders will be considering this trade setup to get in long. This is also a bounce off the Shark Band I was waiting for all morning.

The profit on the move, was held into the NTZ. Remember, we do not enter new trades in the NTZ, but if we are already in a trade, then we want to hold that trade until we either hit our profit target, stop losses or trailing stops. In this case, we were expecting price to work it’s way to 1400. Entry on this trade was 1396.50. Exit was 1399.50 for 3 pts or 12 ticks. The first profit target was 4 ticks. (4+12=16) Final profit depends on how many contracts you trade with.

I hope that helps. Keep the great questions coming.

TraderShark

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