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, April 23rd, 2013.
The market opened up here this morning at 1564.25. And we knew by the gap range we were going to have a long day, so we were looking for pullbacks. In this particular case this is our higher timeframe chart. And we had a nice clean hook pattern that did work its way for completion prior to this little flash crash that occurred here about 5 minutes before 1:00 or so, due to a false Twitter tweet. Try to say that three times real fast. And then going into the close I want you to notice we did have a nice trendline break for a setup to continue to push price action higher. I want you to notice that after hours our actual second hook pattern was completed.
Now let’s go to a lower timeframe chart. So what actually happens on a tidal wave type of trade day. I misspoke when I said 1564, I quoted, it’s actually 1564.75 is the opening price. We don’t trade from 9:30 to 9:45. And we were looking for an opportunity. Any types of pullbacks for us to try to get into a long position. Basically can just hold a position like this the whole bit, until about 3:00 Eastern Standard Time.
This was a nice clean setup for us to be able to get in. It was in a no trade zone. Did not take it. We then had a nice little auto wave fire off here. Had an opportunity to get in. And we had several opportunities. If you didn’t want to trade during the no trade zone, we had a second opportunity, and then a third opportunity, but a third opportunity, remember on a tidal wave, on this particular case I had a 3.5 point stop. And we were going to try and just run this for the day. When I get heavier than more than 2 or 3 contracts, I’ll bring in a little bit tighter stop. In this particular case I got stopped for minus 4 ticks. These were all with only 1 contract trades, right? 1 contract with 23 ticks, 1 contract with 12 ticks, and then we got stopped out for minus 4 ticks on this one. That’s because I was trading 3 different platforms.
We then had a pullback here. Nice opportunity another 12 ticks, and it doesn’t mean that it occurred all within this short period of time. Even this 23 tick period, it was not taken out until the little flash crash that occurred there around the no trade zone, the lunch time no trade zone.
Had another opportunity for an entry and 12 ticks. I want you to notice these auto waves firing off. If you did not get in on the auto wave, there’s plenty of other opportunities in through here for entering.
There’s one auto wave that I actually missed, and notice I colored that as yellow. But it nonetheless, nice fired off continued on higher. And we had what’s called a no trade zone that occurs from 11:30 until 1:15 Eastern. There’s no further trades that I took. I kind of let those trades that we were in, let them run and then got up, walked away from the no trade zone from 11:30 to 1:15 Eastern Standard Time. And you know, who would have known that this would have occurred. There’s a false Twitter tweet that caught everybody off guard and it stopped our trailing stop to the long side. When you get a news issue like that, again, that will trump every trade setup you have. This is during a no trade zone. There’s no ability for us to recover. Once they found out it was false they brought price action right back up to where it initially started. But, at that time you really want to let the dust settle and do nothing.
2:00 at the highs of the day, we don’t generally want to be caught in any type of long positions. Nice little pullback, auto wave fired off short. Quick 8 ticks there. And then we were below the moving averages, but as you saw in our higher timeframe chart, we had a nice setup to be ready to get long. Our auto wave fired off, another 10 ticks to the long side. If you didn’t get in there, you had another opportunity here, another trendline wave trade and then going into the close. A lot of stuff went on today. Patience was the name of the game.
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
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