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
Info@TraderShark.com
Good evening traders, this is Brian with TraderShark.com, an educational website to learn how to trade the S&P emini futures. Today is Friday, December 14th, 2012.
We are in the first day of the March contract. Nothing is surprising at this point. I want to show you a longer timeframe chart. This is our opening range. And I want you to notice how price action just stayed within opening range. And I do have a little webinar that we give talking about chum, or what’s called shark bait, and that’s exactly what we saw all day today. When price action remains within this opening range, there’s no break out one way or the other, a lot of indecisiveness. Volume was light. We’re going into a Friday afternoon. There’s literally no trades that went on today.
Now let’s look at a lower timeframe chart. Okay, so this is our lower timeframe chart. 9:30 to 9:45 we tend not to trade. It’s just a period of choppiness. And what you see here is this 1410.25 is the opening price for today. 1409.75 is yesterday’s low. And again, being the actually the second day of the contract. The contract rollover started yesterday at 9:30 in the morning. We didn’t really see the volume kick in until this morning when we have a full move over to the March contract.
Coming out of the no trade zone. What you saw earlier was a higher timeframe chart that kept us within a opening range. However, if you just simply use the auto wave indicator. Here the auto wave indicator fired off long, but we were below the moving average, so you would not have taken that trade.
This would have been a nice trade short. Follow just the auto wave trade long. Would have taken a little while, but there’s your long position. You’re below the moving averages. You may or may not have tried to get on this one. I know we were trying to work our way into the higher range, the opening range. And with that I would not have taken these trades either, but I want you to see how the auto waves, these little dots, push up higher into profitable trades.
Another auto wave short. Again, would have taken maybe first target off. Possibly gotten stopped out. First target off. Second target hit going into the no trade zone. We have a no trade zone from 11:30 until 1:15 Eastern Standard Time. I want you to notice how narrow this no trade zone is. That’s just showing there’s little or no volume. When you have low volume, the market tends to be choppy ripsawy if you will, and takes out your stop runs.
Here’s another auto wave short. This would have been a failed trade, 11.75, so it would have taken us out by 1 tick for a full stop out if you had taken that auto wave. Again, I was not taking any of these trades. Look at also, I want you to see, we’re stuck within 1 point of opening price and yesterday’s lows. This would have been a follow through once you broke through the moving averages. Nice pullback. Entry for a continuation or follow through. But there’s not an auto wave and that was pretty much it for the day.
So you saw the higher timeframe chart. I always encourage people to use a higher timeframe chart to see where the market’s going and then use your lower timeframe chart for entries and exit.
I hope that helps you for the day. Have a great weekend. Make sure you get all your Christmas shopping done. We’ll see you bright and early on Monday 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.