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 Tuesday, September 25th, 2012.
The market opened up this morning here at 1454 where the white dotted line is. I want you to notice we generally don’t trade from 9:30 until 9:45. Just a period of higher volatility. Coming out we really didn’t see much movement. A nice little break to the upside. Pullback. It was going into a Shark band, so I didn’t take this trade. But it was a nice clean setup. You see that wave trade indicator here.
Price action still continued the sideways motion, so we were kind of riding right through this entire Shark band. Let’s see if maybe I can show you a screenshot of that. Right here you can see the first part of the morning, they appeared to want to selloff and then just ran sideways. And kind of got stuck in the middle of this upper Shark band. The next Shark band cut through like butter. Found resistance. Continuation. And then you saw a little bit of a bounce. Not much. All the other market internal indicators were just indicating pure bearishness. Now one should have tried to buy in through here. And then worked its way down. Finally found support on the third Shark band and even broke through that third before 4:00.
So the reason I showed you that was notice this sideways movement. You know, even a break below the moving average trend to get short, you don’t want to do that into the opening range. A break above the moving average. Pullback. Nice. It was actually 2 opportunities to get long. But kept our profit targets really tight. This was just from the past couple weeks that we’ve seen sideways choppiness. We kept our stops very tight and our profit targets very tight.
Then we went into the no trade zone. Now I want to let you know here we don’t trade. We don’t enter any new trades. I just want you to see we had a nice sell signal in the no trade zone and a continuation to the downside. Again, below the moving averages.
Coming out of the no trade zone the pressure was still to the downside. We had good news this morning, right. Housing stock prices were up. Consumer confidence was up. Nobody was expecting this. And it was the exact reason why we had the selloff. Look at these red dots below the moving averages. Red dots below the moving averages. Just continue to have bearish pressure to the downside. I was not here about this time, I had an appointment. So hopefully some traders inside the room were able to take advantage of these down moves.
This may have gotten a reduced risk stop out. Continuation. Continuation. Continuation. Look at the red dots. Just everything firing off. This is a yellow, this is one we talked about but I did not take it, it just happened so fast. Continuation. Look at our green dots. They’re below the moving averages. You don’t take the green dots. No waves to the long side.
And we had one nice clean, some people would have gotten in here. Taken a little bit of heat. A little bit of pressure. Finally a nice selloff for 15 ticks into the close. And then the pressure just continued to the downside. So the biggest thing that we learned today was really patience. Watch your market internals. And when not to be going long. You can be short and hold onto a short position, but with all of our market internals telling us don’t get in long you don’t want to try and call a bottom. Calling a bottom is devastating to your financial account.
To learn more about these and more advanced trade setups or to get a copy of the Trader Shark trading manuals, please visit TraderShark.com. Thank you 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.