Futures Trading

Exhaustion Reaction at the Support and Resistance

Which Wave Are You In The Market Cycle?

It is so important to know where you are in the market cycle.  Are you in wave 1, wave 2 or wave 3?

If you are trading wave 1, you can go for a big move.  However, if the market cycle in  wave 3, you can do only scalping.

Multiple Time-Frame Alignment

Identify the resistance and support in larger time frame such as 30 min chart to trade 1 min chart.  It is one of the most important factor in success in trading.

Support levels in confluence with 1 min chart + volume spike!

 

Gold Example

  1. 30 min support
  2. Intraday support - low of the previous day, days low
  3. volume spike

Note: Once you get in the trade based on 30 min/Intraday support confluence, don't micromanage your trade by moving stop soon.

 

Scaling Out

Exit at 1R, 2R, 3R

You might take 2-3 losses in a row, then you might take a big profit to cover all the losses and be ahead.

Take1R to help you psychologically.  

You need to be trading in the direction of 30 min.

Use moving average for stops - 21, 34 EMA once trend is set.  Attach your stop to moving averages.

 

Surprises happen in the direction of trade

 

Manage The Trades That are Not Working

Russel Example

The long trade hit the first target. But it balanced and when it made the third touch, you can move the stop under the balance to avoid the full stop.

Large Bars to the Downside

When there was a large sell to the downside in a downtrend.  The top of the bar is typically resistance. Look to sell on 1 min chart.

 

Knowledge vs Skill

You can learn about trading by reading or watching video, but you can't learn how to trade and make money till you learn skill.  

You get stopped and what did you learn from it??

-Futures Trading

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