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
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Transcription:
Good afternoon traders, this is Brian with TraderShark.com an educational website to learn how to trade the EMini S&P 500 futures. Today is Friday May 23rd, 2014. I’m going to review both Thursday and Friday’s trade setups. I want you to notice that on Thursday May 22nd, the market opened up at 1885.75 as represented by this white line. As soon as we get over this 1885 level we have kind of a bullish bias until this market reaches the 1900 level. We had a pro range reversal opportunity. I took a loss for minus two ticks. I forced myself out based on the market internals. Then once we got out of the morning no trade zone, we had an opportunity.
There was a nice little pullback, just very quickly got three ticks and got three ticks out of our trade. Then continuing sideways, as we continue onto the morning. We watch for a reversal particularly at 10 o’clock in the morning or also at ten-thirty. In this case, there was no reversal. There was actually a hook pattern setup and in that regard, there was actually I want you to see the internals on the lower timeframe chart were all firing off long, and I got out at four and seven ticks. If anybody held on for the third contract it would have been a total of 19 ticks on the complete hook pattern here. I’m exiting early on my trades mostly because of the lower volume and the lower range that we’re seeing today. It did take off right into the lunchtime trading zone and you’ll notice the sideways motion here. Coming out of the lunchtime trading zone, we generally look for a potential run from 1:30 to 2 o’clock. Nice internal setup, long seven ticks. That was pretty much it for the day, if you take a step back and your looking at this timeframe chart you can kind of see the sideways motion. While there may have been some smaller opportunities in between there, I chose to stay out for the day.
Ok, so here we are on Friday May 23rd, 2014. We have a no trading zone from 9:30 to 9:45. No trades coming out. Looked for some type of opportunity here around 10 o’clock. I think there was a news report on new home sales came within a consensus range; a really non-market moving event. Again, the volume stayed very light before the three day weekend. I’m exiting my trades with two and four ticks, didn’t really expect to see much more movement than that. I wasn’t into putting a trail stop on any of these trades. However, as we pushed our way forward we had the opportunity for a trend line wave trade here for a total of six ticks to the long side. On the higher timeframe chart we actually have a hook pattern to develop for a total of four and four and I did not take the third contract, but if you held on for the third contract you would have had a total of plus eleven on that hook pattern. As we progress forward a little bit of a pullback, another opportunity to get in at four. Took a little bit of heat here, but in the overall big scheme of things it was not much heat at all. A total of four ticks. Again, out really quickly and I’m playing it safe mostly because of the lower volume, and the lower range. Going into the lunchtime trading zone you can see the sideways motion, the narrower band, absolutely nothing else going on here. Here around two o’clock we tend to look for a potential selloff with bond traders stepping into the market, and equities getting pushed. We had an indication to short, but with the lower volume we’ve seen this market, you’ve always heard the adage don’t short a dull market, or slow and quiet equals bullish. That’s exactly what we watch for this day Friday going into the close. Then, not even wanting to hold on very long there was a nice quick trade here. Another trend line trade long into the close. Anyways, not much but we’re staying conservative, staying safe, and booking minor profits. I wish you the best Memorial Day weekend and enjoy, see you bright and early on Tuesday morning. Have a great weekend everybody.
The information herein has been prepared solely for general information and educational purposes and is not an offer to buy or sell, or a solicitation of an offer to buy or sell the securities or financial products mentioned in the content, nor a recommendation to participate in any particular trading strategy. Please consult your broker for trading advice. All trading requires risking money in pursuit of future gain. Do not risk money you cannot afford to lose. Past performance is no guarantee of future performance. The instructor is not a broker or a licensed investment adviser and is therefore not licensed to give trading advice of any sort, nor make specific trading recommendations.