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
Good evening traders, this is Brian with TraderShark.com, an educational website to learn how to trade the emini S&P futures. Today is Wednesday, October 16th, 2013.
I’m going to open up with a 30 minute candle chart, and I want you to see sometimes when you get this sideways consolidation and you’re more of a day trader, you don’t see the bigger picture. So I always like to tell people to take a step back to a higher timeframe chart, 30 minute, 60 minute chart, whatever works for you. And in this particular case I want you to see this opening candle was quite bullish obviously and the trend continued higher until our signal candle right here at what, 1:00 in the afternoon, gave you a nice indication it may be pulling back. And then your next signal candle right there at about 3:30 for a run into the close. So you got an action, you got your reaction and you got your continuation. So it happens on all time frames.
Let’s go ahead and work our way over towards the lower timeframe chart. Okay, this is our lower timeframe chart. Price action opened up here at 1702.25 represented by the white dotted line. We generally don’t trade for the first 15 minutes. I’m not a breakout trader but you can see the momentum had worked its way to the high side for a breakout, continuation. I’m not much of a breakout trader. This pullback was right there at 10:00, so I did not take this trade, but the setup was very nice. In the meantime, fortunately, we did not take the trade, it would have been a minus 2 tick stop.
Waited for a little bit deeper pullback. Back in below our moving average for a continued pullback that eventually paid off here. The yellow numbers are the ones that I did not take. I took the white one right here at 17. If you took a wave trade, there were three different setups that occurred right at this level. The wave trade occurred, would have been a 10 tick trade. I took what’s called a tidal wave trade, I exited up there around 1714.50, which was an hourly range high level. And then plus 25 is if you worked your way all the way up to the Shark band which is at around 1717.
As we continued through, this is all the waiting periods. This is quite a long trade, and then we had another pullback. This was a wave trade setup. Notice the auto wave kicked in. First target was hit, second target was hit, total of 10 ticks. And then up here was the profit target for the tidal wave and so you have to independently separate your trades such that your profit targets are different on each trade according to what’s in the trading manual. The high of the day we talked about that at the opening of the day, we were talking about where the Shark bands were. If we broke above our level, next target was 1717.
And then on the retracement there was a nice clean opportunity, pullback, right here at about 11:22 for a continuation. It is a counter trend trade. When you do a counter trend trade your profit targets are a little bit shallower or tighter. So I only got 6 ticks on this trade. And then we went into what’s called a cautionary trade zone from 11:30 until 1:15 Eastern Standard Time. Looking to notice the sideways movement. Coming out of the no trade zone, there’s a little bit of a burst higher up into the 2:00 timeframe. And then as it reversed at 2:00, we generally don’t want to be in any long positions. It was a nice little scalping opportunity right there at around 2:15 Eastern Standard timeframe. That was 6 ticks.
Continuing on into the afternoon. I don’t generally trade from 2:30 to 3:30. There’s a little bit of a setup for a continuation long. This also would have had a reduced risk stop out. Did not take it. Another opportunity to get long right in here. Again, I was not trading at this point, by 3:30 in the afternoon it did finish up higher as we saw on the 30 minute candle.
To learn more about these and 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 Video and Transcription