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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.
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Good evening traders, this is Brian with TraderShark.com, an educational website to learn how to trade the emini S&P futures and the Euro futures. Today is Monday, February 3rd, 2014.
The market opened up this morning here at 1774.75. Just want to give you an idea from a higher timeframe chart, from a more aggressive, we’ll take these pullbacks. There’s a little more detail to it than that. But this initial hook pattern came about at 10:00 when the initial news of ISM manufacturing index came out, well below consensus range. So this is really difficult to get into. The second was certainly a much easier hook pattern to get into. That ranged anywhere from 22 to 43 ticks, just in that one trade.
The third hook pattern, got the first target and second target off. Third target did not complete. Would have gotten stopped out for a total of plus 9 ticks on that trade. And then we had a little break of a significant level here. Once the break of the significant level, we had a little bit of a retracement, and then depending on the lower time frame chart we’re going to look at here shortly you’ll see whether we were able to make any money on that little pullback.
Continuation, this was not a valid hook pattern into the downside. This was not a valid hook pattern. We did have a nice continuation here to the downside. This happened during the lunchtime trading zone. Some traders may or may not have taken advantage of that but I want you to see that the trade setups do occur, even in the lunchtime zone.
Here’s another little clean hook pattern, notice how the completion is down here, very symmetrical. And a continuation just kept hitting each one of our support levels. So I kept saying in the Shark Den, you know, keep this to the downside. Our market internals were just selling off. Bank index was below its average. Volatility index continued to be bearish.
And then we found our support level right here at around 36. I kept expecting 37.50 to hold and while it may have penetrated a little bit to the downside, we finished up right there at around 1633.
Okay, so let’s go ahead and look at the lower timeframe chart. Here’s the 1774.75 represented by this white dotted line. The market opened up and we initially started off in one direction. We had what’s called a pro-range reversal for a total of 8 ticks. And then we had another pro-range reversal, another pro-range reversal. These yellow ones are the ones I did not take, but I am showing you in the Shark Den for the rules that we do have setup.
Coming out of the no trade zone, we generally don’t trade from 9:30 to 9:45 except on that pro-range reversal. Notice that price action came through this moving average. Had a nice little pullback. Got into the trade and then the market internals got me out. I took a profit of one tick. I forced myself out based on the market internals. Had a pretty close stop here also. So actually this should have been either plus 1 or zero loss of commissions.
Here at 10:00 the news report of the ISM manufacturing index sold off. It happened so fast, there really wasn’t an opportunity to get in. And then a nice little pullback. Did not even get the first target off. Got a stop out for minus 4 ticks, 2 contracts at 2 ticks each. And then we had another clean pullback for continuation for a total of 10 ticks. Another pullback. I did not get ahold of this one, that’s why it’s colored in yellow. Nice clean pullback. You can see the trigger charts firing off. Pullback up into our moving average. Another opportunity to get short. Took our first target. Got stopped out for a total of minus 2 ticks.
And then we had a nice little retracement that we talked about in the higher timeframe video. Remember it broke this significant level. Pullback and continuation. Got a total of 9 ticks on that. And then there was another selloff above the moving averages for a continuation lower. Some traders may or may not have got ahold of that last trade, especially if you were on any of the hook patterns. And then a nice little retracement for a total of 7 ticks before going into the no trade zone from 11:30 to 1:15 Eastern Standard Time. We’re off the charts there.
And just a gradual grind lower. Pullback. These pullbacks were deep enough to run the stops. Continuation on the stops. Continuation on the stops. Again in the afternoons, a lot of traders don’t trade. Sideways motion. There really wasn’t any final trades. I had come back in around 3:30 in the afternoon. I tried to get a long position. Got stopped out for minus zero. And then another position, trying to get into a short. And I forced myself out for minus 3 ticks on that. All in all it was a very good day.
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 evening and I’ll see you in the Shark Den in the morning.
Link to the Video and Transcription