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.
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Good evening traders, this is Brian with TraderShark.com, an educational website to learn how to trade the emini S&P futures. Today is Friday, February 8th, 2013.
The market opened up this morning here at 1508 represented by the white dotted line. A lot of traders don’t trade this first half hour of the day. And then we knew that the Globex range was narrow. We were going to see a sideways chop for the rest of the day. At least that’s what we thought.
We did start to see some double topping up here. We had, you’ll notice our range levels. It ran right up to our range level, actually blew through it, and then we were stopped by our higher range level based on this little wick, or blow off top if you will. And I want you to see that after you get a higher high in price action we had a lower high in momentum. And it gave us an opportunity actually to set up for a potential shorting opportunity. That would have given us a nice clean entry, pull in anywhere from 2, 4, 6 or 8 ticks to the downside.
So let’s go ahead and see what that looks like on a shorter timeframe chart. So this is a lower timeframe chart, and I want you to see at 9:30 the market opened up at 1508, again represented by the white dotted line. A lot of traders did not trade this first half hour of the day. And this market just took off. Didn’t look back. Didn’t work its way to the half-gap or the gap fill, and as a result, I personally did not get into this trade, but look we had an auto wave fire off long, right there at around 9:35. And it reached our range levels that we showed you on the previous screen.
And based on what we saw before the market even opened, we had a very narrow Globex range, we were expecting a kind of narrow range for the day, plus it was Friday. We were expecting, we even said by 9:45, we were expecting sideways chop.
Coming out of the no trade zone from 9:30 to 9:45, we ran in and just notice how price action wrapped around this opening price. We did finally have an opportunity. Nice setup on our momentum indicator for a long opportunity. We pulled off 10 ticks right there at about 10:30 going into a trending timeframe. And then we had a pullback. Another opportunity to get long. And it just did not materialize we scaled out right directly at the entry price for zero ticks. So you paid your commissions on that.
And then we went into the next no trade zone, from 11:30 until 1:15 Eastern Standard Time, that’s just a period of higher volatility, lower volume. We had low volume to start with. Coming out of the no trade zone we had an opportunity to get long. Target 1 and target 2 were hit for a total of 6 ticks. Generally we’ll look for about 8 to 10 ticks, but the sideways chop we had, we were looking for just basically scalp trades were all we could take advantage of today.
And then I want you just to notice how price actions stayed very tight to this moving average. We took another opportunity to try to get long in here. Took a lot of heat to the downside. Did not get stopped out. Some of us scaled out. This was not, I colored it in yellow because it was not a valid trade entry. It was more of a gut feeling for a trade, and as a result we ended up with just barely, some people went flat with no profit, no loss. And some of us made, you know, plus 2 ticks if you will until we finished up Friday afternoon running sideways.
Where’s our high today? Right there around 1515. We’ve been watching the 1515 level for about two weeks now. Finally hit it. Only next week we’ll be able to tell us, are we going higher from here. I do think this is a key resistance level. And I think profit taking is in order for us to see more downside potential next week.
I want to thank you for watching. 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 day and I’ll see you in the Shark Den 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.