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 Thursday, November 15th, 2012.
The market opened up this morning here at around 1353.25.You’ll notice we’re starting kind of in the middle of the morning here at around 10:30 or so. We generally see, from 10:10 to about 10:25 potential reversal zone around 10:30. The market tends to trend from 10:30 to about 11:15 and you’ll notice we had a gradual pull all the way down into yesterday’s low.
And then we had drawn these lines earlier saying, hey, here’s yesterday’s low 1349 potential area for a Shark Attack trade and then we expected price action to kind of consolidate between these two levels. Between 1347.50 and 1349.50. As price action continues to test yesterday’s low, even though it broke through its still considered testing it. We did have an opportunity to get long.
And I’m going to show you a failed Shark Attack trade followed by a successful Shark Attack trade. There’s Shark Attack end up right here at about 11:27. First target was hit with about 4 ticks. Generally a Shark Attack trade will have anywhere from 8 ticks to 16 ticks for this second target. In this particular case as long as you get the trade and you get your first target off before you go into a no trade zone, it’s okay to hold on to that trade until you get stopped out or you hit your profit target. In this particular case we got stopped out for minus 8 ticks on the second contract. Took a loss of a total of 4 ticks on this Shark Attack trade.
Going into the no trade zone we don’t initiate any new trades. Coming back out at 1:15 we did see a nice clean setup here. We had an auto wave setup. Approaching our yesterday’s low a third time. I can’t really get this ellipse to print over the top of the no trade zone. But you can see we had a low to a high. 50% pullback. Valid entry, so we had a Fibonacci pullback, auto wave trade setup, knowing that we were approaching our yesterday’s low. First target was 8 ticks, right here at 1351.50. Pullback. No heat really. Just kind of a gradual push. Second target 1353.50.
And then we had a runner. If you’re only doing 2 contracts, you’d be out by 1353.50. The market continued to push a little higher. It’s okay to leave a little bit on the table. Not disappointed with a total of what? I think we had 9 ticks on the first trade and 17 ticks on the second trade, depending on your entry. Got 1 tick better than the entry here at around 1349.50 to 1349.25.
We watched for the rest of the day as the market came back below the moving average. And back and retested the lows of the previous day. Broke through the lows yesterday. Kind of pulling everybody in. Trying to get them to get into a bad trade. The key support that we had was at 1346 to 1345, you’re not seeing it here, but this was a Shark band. Had a little bit of a bounce off of that. Came back up through. No hesitation at yesterday’s low.
So you had an opportunity to get into this again. Some other traders in the room were about to get target 1 and just shy of target 2, about 1353.25 for a second Shark Attack trade. So on the same day we had 3 Shark Attack trades. First one failed. Second one fully materialized. Second one at least you would have gotten your first target off. If you had watched the market internals, you had a nice cross here to the downside of the trigger chart. You could have possibly gotten at least a 3 point profit on that second contract.
It’s good to watch a Shark Attack trade over and over again. It’s not really for new traders unless you’ve experienced it several times before, before you get involved in this.
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 night. Remember tomorrow is options expiration day and I’ll see you in the Shark Den on Friday 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.