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. Today is Monday, April 29th, 2013.
The market opened up this morning here at 1582.25 represented by this white dotted line. We had a nice little hook pattern coming out of opening range. I want to show you from a higher timeframe chart the way our Shark bands work. Overhead resistance was met right here at the 87 to 88 level. And then we also had a hook pattern establish a target that established itself right here at around 10:30 in the morning Eastern Standard Time, and actually didn’t complete until right about 2:00 in the afternoon. Nice little selloff. This particular hook pattern had target 1 and target 2 hit. Target 3 was never hit.
So let’s take a step down to a lower timeframe chart. We generally don’t trade from 9:30 until 9:45 in the morning. However there’s one specific setup that we do have, we’ll trade it. Total of 6 ticks to the downside. Target 1 and target 2 are hit, working its way towards the half gap. In this particular case price action rebounded, 2 points off of the open, back to the open. And then generally we don’t trade around the opening price just because a lot of traders are told to fade it and they’ve been running through it as they did here. So we don’t trade usually around 1 point.
We also had a news report, pending home sales at 10:00 and so we generally want to be out of any trades. We don’t want to be initiating any new trades 3 minutes prior to the news report. Coming out the news report there was a nice little burst higher. Pending homes sales was within consensus range, but better than expected on the overall sales.
We did wait for a little bit of a pullback. Nice opportunity to get in. First target was hit for a total of 4 ticks and then got stopped out right to a tick. Right from where I entered for it to take off and hits profit. So then you don’t want to be chasing a trade. Nice pullback here. Opportunity to hit target 1 and target 2. And what you’re doing is with the lower volume we had today, we will see a lot more sideways motion before it moves in the intended direction.
Then we went into the no trade zone from 11:30 to 1:15 Eastern Standard Time. I don’t trade during the no trade zone. Some traders so, I want you to notice the auto waves were firing off in the no trade zone. Two opportunities to fire off to be able to scalp it. I don’t trade. I think it’s an opportunity to take a break, avoid the lower volume and the higher volatility. But I know we have some traders in the trade room that do follow those trades. 70% of the time we will watch the market move higher in the no trade zone.
Coming out of the no trade zone we have another timeframe on our time chart that the market tends to rise from 1:30 to 2:00. In this particular case it’s set up nicely. Target 1 and target 2 hit for a total of 12 ticks. And then at 2:00 we are out of any long positions. A lot of sideways motion. Pullback. I did not get in on this trade, but I want you to notice the auto waves firing off to the downside. So I did put a total of 8 ticks there. But the yellow arrows indicate that I did not take those trades.
Then, going into the close had another opportunity to get long. I did jump in this one. I want you to notice we’re below the moving averages. In hindsight it was a bad trade. Actually at the time we knew it was a bad trade. We got stopped out for a total of minus 8 ticks. I only took 1 contract and I told everybody in the room I was only going to take 1 contract into the close. We were expecting price action to work its way back up to the highs. And our market internals were telling us to get out and yet I still held on, took a total of 8 tick loss.
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
Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time. Past performance is not an indication of future results.