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,
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, January 27th, 2014.
The market opened up this morning here at 1786.25 represented by this white dotted line. I’m showing you a higher timeframe chart here. I want you to see again, we have a lot of follow through. You got a lot higher volume today which the hook patterns work beautifully again.
Starting out here at about 9:30 we did have a hook pattern long, I chose not to do it that’s why I colored it in yellow. It was within our opening range. Now if you did try to get off on this particular target, you would have got your first target off possibly. It did hit T1 and then it did not follow through. This could have been a full stop out. Again, within our opening range. It was not a wise choice. There are, you know, this is where we do use discretion in the room.
And I want you to notice as we had another hook pattern. This is a very nice, clean one going on here. I only took 10 ticks on it with 2 contracts. With 3 contracts you could have got as much as 28 ticks on this particular trade.
Again, I’m looking at a higher timeframe chart. We’ll look at a lower timeframe chart here in just a moment. Had another hook pattern, working its way down to the lower side. This would have eventually gotten stopped out, but it would have gotten its first target and second target here. This hook pattern, first target and second target. There was another hook pattern here that was invalid. Continue on, another hook pattern.
I want you to see I was finding a lot of sideways chop and bouncing in between these two shark bands, so it’s really a choice as to whether you want to take a trade while fighting through Shark bands. Once we got out of these Shark bands, I want you to notice like the nice clean hook setup and the dark area is called open water for a continuation lower.
Found our way down to the support level. We said this way ahead of time. We even drew these lines. You see these horizontal lines here at 67.50 and 75, these were drawn inward at around 9:30 this morning. Support area or let’s say a resistance area, prior to a pull-back and continue on down to the Shark band, which was there at 1770. And then the penetration even deeper, 67.50. And this is in a no trade zone, I want you to notice. We started to say, hey, looking for buying opportunities, looking for buying opportunities, looking for buying opportunities. And these were all firing off long for a nice bounce because this is an outer edge.
This also hit our Globex range level. And we saw that on another chart. And a nice bounce up back into our opening range. It gets a little choppy once you get above the Shark bands and into the opening range. There’s your opening price again, tested it for a selloff into the close.
I’m going to go through this relatively quickly. The opening range, we have from 9:30 to 9:15 no trade zone. Coming out of that, opening range, I want you to see a lot of sideways motion. This is where it’s very challenging for some traders to sit and do nothing and be patient.
Once we started to get a little bit of a break out of that opening range we had a nice trade for 10 ticks, nice trade for 6 ticks. Again that hook pattern that I showed you on the higher timeframe charts, 10 to 28 ticks. We have what are called EWT’s or extended wave trades here. Going on short. Another opportunity to get in 8 ticks.
Now you’ll notice why were there only fixed targets because other market internals or indicators were telling us to exit our trade slightly early. Again, if you don’t want to weather any of these pullbacks, a little more conservative. Take those fixed targets. If you put on a trial stop, did very nicely today.
We want you to notice when we started to get our first little indication of a pop higher, these auto waves were firing off. Navigating through these moving averages, working our way sideways again, another couple opportunities to try to get long, minus 2 ticks. Another opportunity, minus 3 ticks. Not a big deal, before we went into the no trade zone there at 11:30.
11:30 to 1:15 Eastern Standard Time, nice little selloff here, continuation lower. Again, some traders like to trade during this lunchtime trading zone. And here’s where I, I even poked my head in during the lunchtime and said, hey look for opportunities to be buying in. Look for opportunities for buying in as we pushed higher.
Coming out of the no trade zone, an opportunity to get short. Got stopped out for minus 2 ticks. Another opportunity to get long. This was probably a fear based trade because we were working our way back up into Shark bands. But you know, 6 ticks here, 6 ticks there, there’s $150 without even blinking an eye. And then you can see how they were hunting for the stops and you had to have a little bit of wherewithal to hold on to these trades if you were pushing it higher on into the close.
And then as we went sideways, right here from 3:30 on, there was no real clean setups, so I pretty much sat and watched as this market tumbled off into the close.
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 evening and I’ll see you in the Shark Den in the morning.
Link to Video and Transcription