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.
Transcript:
Good evening traders, this is Brian with TraderShark.com, an educational website to learn how to trade the S&P, E-mini and Euro Futures. Today is Wednesday, April 2nd, 2014. I am going to go ahead and cover the last three days. I have been very busy getting the new website up and running, we’ve got a new website launch next week. Working on some of the indicators in the coaching program has kept me very busy. Let’s go ahead and start with Monday March 31st. From 9:30 to 9:45 is a no-trade zone, and at that time we had a broad spread well over four or five points. I think that it was six and a half points on the opening range. With that, we knew that we were going to have a sideways chop that kind of indicated it to me early on. We also had Janet Yellen speaking here at around 9:55. When the talking heads are speaking we generally do not take any trades. I found myself getting into one trade here; I didn’t even get the first target off and stopped out for minus two contracts. As we went in sideways, you can almost see a lot of hesitation, uncertain about the commentary coming from Janet Yellen. Still a sideways motion with no real opportunities. We had a nice opportunity to get in here long at about 10:30. My first target got off and then got stopped out for minus four ticks. Into the sideways motion and on into the lunchtime trading zone. So there were no trades, what we are starting to notice during the lunchtime trading zone that these markets are setting up nice. Anchor chart, trigger chart, T1, T2, I had a little bit of a stretch there for a total of twelve ticks during the lunchtime trading zone. Coming out of the lunchtime trading zone, we were right around the moving average. There was a lot of sideways motion with not a lot else going on. My first target get off, and got stopped out for minus two ticks. That was it for the day so it was really a less then productive day.
Coming into the next day, let’s go ahead and look. I want you to see the broad opening range here on Tuesday. Again, that is a clear indication that I am going to have a sideways, choppy day. We had a lot of news reports come out this day. The PMI manufacturing index came out below the consensus range, and construction spending was within consensus range. I’m not a big news trader, I just kind of focused on whether it’s going to be within consensus range or not and it was. With that I’m not seeing many opportunities, what you are not seeing is that we had a nice thick Sharkband right here. Hindsight was 2020. I took a long against my rules, I took a full stop out minus sixteen ticks, and there’s a nice thick Sharkband here we talked about it. We also had higher highs on price action, lower highs on momentum. We also had some other opportunities for shorting. They are yellow, meaning that I did not take them. We just kind of sat for the day and watched a lot of sideways motion without further continuation. The lunchtime trading zone was again a lot more of the same. Pushing higher we got a move back above the moving averages for a continuation on into the close. I did not get any of that, so the SharkBands were so tight on this high side that trying to take a trade into that was just the kiss of death, so I chose to stand out on the sidelines.
As we come into today, Wednesday, we had an opportunity to do a pro-range reversal. Reached up, hit the first target and came back out and stopped me out for flat. Second pro-range reversal had a no-fill and it launched off just like expected. We had a narrow opening range this morning, about 3.75 points. We were expecting a burst and that is what I watched the first part of the morning. Factory orders were above consensus range, that’s kind of a bullish impact on the market and I was just looking for a nice clean setup. Nothing occurred here until right at about 10:30, nice launch higher. That’s our trending timeframe from about 10:30 to 11:15. I had three contracts on this trade, I think that it was a hook pattern at that point, first target, second target, and then the third contract stopped out at break even.
Here we had a nice little opportunity to get short, did not materialize and internal indicators got us out at plus zero. Going into the lunchtime trading zone, we were watching it. A nice clean trade, another opportunity again during this lunchtime trading zone. I’m making everybody aware, start watching this lunchtime trading zone. Where it used to be a no trade zone, this is where a lot of the moves are tending to occur. Plus six ticks here first part at about 12:10. Then another six ticks, I did not get this one but it setup nice for a total of six ticks going counter-trend. Then a lot of sideways chop. We’re working our way in towards the close, another opportunity for a total of ten ticks. Here on our anchor chart and trigger chart fired off for a continuation higher. We did not know that this was going to launch. We had a nice solid shot across the bow which gave me a nice selling opportunity going into the close. Wave trade long, chose to stay out in through here. Sideways chop and then your gradual sell-off into the close. A lot went on today; we’re starting to see the market come back into symmetry. Focus on that opening range. To learn more about these and more advanced trade setups, or to get a copy of the TraderShark Trading Manuals please visit TraderShark.com. Thank you, have a great night and I will see you in the SharkDen in the morning.
To successful trading,
TraderShark