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, May 7th, 2013.
The market opened up this morning here at 1616.50 represented by this white dotted line. We generally don’t trade from 9:30 to 9:45. It’s just a period of higher volatility. There are a couple of exceptions to that timeframe. In this particular case we have what’s called a pro-range reversal. Right here. We shorted it real quick for 4 ticks. It’s only a 4 tick trade. It’s basically a one to one risk reward ratio in that particular case.
Working our way up to the first reversal zone. We had a reversal zone, but we stayed close to opening price. We generally don’t trade within 1 point of opening price. Had a nice little pullback. Continued. Nice opportunity to enter. You notice our trigger chart was firing off short. Got our first target off easy, and the second target we were short just by 1 tick and then it re-bounced up against us. Lost 5 ticks on that particular trade.
Continuing on price action worked its way back above our moving average into the opening price. Again, notice the sideways chop. We don’t really want to be playing with that. Ran right into the no trade zone at that point. From 11:30 until 1:15 Eastern Standard Time, again we’re operating on lower volume today. No news reports.
And the no trade zones are our black and white guideline as to when we do and when we don’t trade. However, when you have a trade setup, I mean this is such a clean setup here long. The anchor charts were in our favor. Momentum is in our favor. The sentiment is in our favor. And also the clock was in our favor. Had to get in right here at about 1:09. So about 6 minutes from the end of the no trade zone. I only took 8 ticks on that, but it really ran up to the full profit potential of 10 ticks. And then the whole timeframe of this sideways movement here we were watching for a 1621.50, it hit it right to the tick. It came across our 2:00 timeframe where we don’t want to be holding any long positions. And another opportunity for a pullback trade for a total of 8 ticks to the downside.
Now this pullback was only barely 2 points. If the market was to run higher into the close, we would have expected at least a 5 point pullback down to this little rectangular area. Since we only had a 2 point pullback, I did not expect much further run to the upside, I expected sideways chop into the close, and that’s exactly what we got. So again, remember, after that 2:00 timeframe like to see at least a pullback in order for the market to rise into the close. If you don’t get that pullback then you will tend to see either a sideways chop or a reversal.
To learn more about these and more advanced trade setups or to get a copy of the Trader Shark 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.