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 Thursday, January 17th, 2013.
We had two news reports out at 8:30 this morning Eastern Standard Time. The employment situation and the housing starts. The housing starts was much better than expected and it initially took off. We don’t trade the news report itself, but what we do take reaction to the news report. So with this initial burst, the actual open of the U.S. market at 9:30 put us in a situation we were pretty close to I think 7.75 points gap up from yesterday’s close. With that situation we have what’s called a tidal wave setup.
The market opened up this morning here at 9:30, 1473.50 represented by this white dotted line. We generally don’t trade the first 15 minutes of the day from 9:30 until 9:45. Coming out of the no trade zone we had a couple nice auto waves kick in. I did not take them. Too close to news reports. I had another news report here at 10:00. And then if you did take this you would not have gotten stopped out. I prefer to wait for a little more of a break and a pullback and we got that here.
I got shaken out a little bit. I got my first target off and then my second target came back and got me out at breakeven. I got 2 ticks on the first trade right here at about 10:14. You can see we had a nice clean trendline break here on our momentum indicator.
As we continue on I had another pullback to the moving average, it was another opportunity to get long. Didn’t even get my first target off. Went sideways. We had other market internal indicators just told me to get out. I did. I flattened out. Cost me commissions, but I got no profits on that.
We were waiting for a nice clean setup for a long position in a tidal wave trade, trading 1 contract or 2 contracts, whatever you wish. In this particular situation we did have a nice opportunity right here at about 11:20. Much cleaner entry would have been right here at about 11:46. We generally don’t trade the no trade zone. There’s exceptions to every rule and in this particular case if you got in here before, that’s great. The target on this was up here around 1479.50. We talked about it all morning.
We had a couple of hook patterns to the long side. We generally don’t trade from 11:30 until 1:15 Eastern Standard Time. That is considered a no trade zone. I want you to notice here that there was a nice clean auto wave that fired off and it matched with what we were looking at, a potential hook pattern long. And I actually was in here held it through the no trade zone. Went off. Did my errands. Kept them there with a trailing stop, and rode this thing all the way up to 1479.5. Actually, I think I scaled out right around 1479, 1478.75 somewhere around there.
So 23 ticks on that trade. But just because you’re in 1 trade doesn’t mean you can’t get into another trade. So we
had another setup right here at about 13:38 or 1:38 PM Eastern Standard Time. And then when you’re in with the trend, target 1 and target 2 were hit for a total of 12 ticks.
Once we hit a major resistance level, or a Shark band, which we have on the other charts we knew that we were due for a type of retracement or a selloff. Right here, another opportunity to get short. This is counter-trend trade, so you keep your profits a little bit tighter. Total of 6 ticks. And then our selloff or profit taking into the close.
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.