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 we had FOMC announcement at 2:00 Eastern Standard Time, so we weren’t expecting much movement. An initial burst one direction or the other. We did not get that. So we had what’s called a pro-range reversal. I want you to notice the opening price here is at 1644.50 represented by the white dotted line.
We had a very narrow Globex range, so with that we expected a quick pro-range reversal. Took a quick 4 ticks with 1 contract. Got stopped out with 1 contract and made another 8 ticks. Just real quick, this is between 9:30 and 9:45 in the morning. We generally don’t trade unless we get a pro-range reversal in there.
In the meantime we did not have a break until all the way up here until 2:00. So notice the sideways movement. There was no trades. Did a lot of sitting on our hands. Then at 2:00 the initial move was down. And it appeared to have an initial move upward, but this actual move, you know, looking at it from a longer time frame perspective. The initial move was down. Had a nice little bounce for 4 ticks. And then when the market gets so volatile and is moving so violently, you really want to give it a couple minutes to settle. At least 3 to 5 minutes on FOMC day. And then I only traded 1 contract. So this nice little burst here up for 14 ticks.
And then we didn’t have any other setups. We did see a pullback expecting a deeper continuation, right. The initial move, the action, the reaction, the continuation. So I was expecting that. Got stopped out for 4 ticks here. And then we broke the previous low. Nice little pullback, continuation for a total of 14 ticks.
Now I’m going to go ahead and slide over and show you the trade of the day. When we had a retracement this significant level was never broken. We did initially draw a significant level here and that was an area that I had this morning by talking about breaking the significant level. But I want you to notice, when this significant level is not broken, continuation in the trend direction is likely and that is exactly what we saw.
So let’s go ahead and slide over to the trade of the day. So for our trade of the day, the exact same timeframe as our higher timeframe chart, right here at around 3:38 Eastern Standard Time. Did not get in on this for a continuation lower. As our momentum indicator went into oversold. This is considered a breakout trade. Our directional indicator was supporting the continuation. Jump in with any type of market order, limit order, whatever you want in this particular case. Notice we have Heikin Ashi candles to keep us in and we also have another moving average that jumps in through here. Keep your trailing stop in behind it.
And then prior to going into our final no trade zone of the day. Look, we even had another firing off of the auto wave for a continuation lower. Trading the FOMC day is not for new traders. It’s really quite a volatile timeframe. Anybody that did try it or at least sit back and watch it, you could have seen, we watched the market depth indicator jumping all over the place. Price action was having pullbacks as much as anywhere from 8 to 12 ticks, and was taking out any type of tight trailing stops. So hopefully you either made money today or at least you kept your powder dry and learned and journaled at the end of the day what you would do for the next FOMC day.
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. 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.