The transition to Futures trading

[CanOz]

Just a quick post in between proofing and baking!

How can a repeating pattern on one market help you on another?

The ES (S&P 500 mini) will frequently test the high or low that was realized during the extended trading or Globex session. This itself is a pattern that many traders use. I saw some figures on it some time ago but it was more than 40% of the time that it was tested within x time from the open of regular trading hours.

Anyway, on Friday it was tested. I've often noticed that when the ES did its test, there would be a low/high in the European markets. I used to watch the DAX allot, when i picked this up. For those that don't know, the US leads Europe (generally) once the Cash opens in NY. So when the ES tested its Globex low again for the second time after the open, the FESX also tested an important level, 2500. You can see on the FESX chart that it was almost as if the buyers were waiting for a chance to swing into action here....

Now i did not know this before i looked at the FESX chart today as i was watching the ES/CL only on Friday night, but i knew that if the ES tested the O/N low there would be something interesting on the FESX, there almost always is.

Another example of a repeating 'pattern' that offers a trading opportunity.


Here's is the video or the replay. Keep in mind the T&S is not accurate, i think the replay engine is too slow to keep up. The prints on the DOM should be accurate. You can see some absorption at 2501 but mainly just the selling drying up...The bid depth thickens up as well. Anything over 2000 is highlighted.

[video=youtube_share;-JDHFuOlEM0]http://youtu.be/-JDHFuOlEM0[/video]

Cheers,


CanOz

 

[CanOz]

Here is an opportunity around the 2550-2555 area for a reversal....

Will try and record it...

CanOz

 

[DJG]

Is it possible (does anyone) trade futures with pure price action? such as pin bars, engulfing's etc? Or would this need to be done on a larger timeframe unless you're quick?

If so, does anybody combine it with DOMs?

 

[CanOz]

Is it possible (does anyone) trade futures with pure price action? such as pin bars, engulfing's etc? Or would this need to be done on a larger timeframe unless you're quick?

If so, does anybody combine it with DOMs?

Yup. Al Brooks

http://www.brookspriceaction.com/

 

[DJG]

Yup. Al Brooks

http://www.brookspriceaction.com/

Awesome

cheers mate

 

[pavilion103]

Tech recommended Al Brooks to me so I bought his 3 books on trends, ranges and reversals (I think). Heavy reading!!! About 100 pages into the trends book.

I'm going to start following be eurostoxx more closely so that I can give some of my thoughts on the thread. I'll also continue to post FTSE ones when I get the chance too. I won't get to every night.

 

[CanOz]

Webinar by Al Brooks




CanOz

 

[CanOz]

Same upper trade location as yesterday, we could see a test of 2533 before a move higher.

If so, we'll look for initiative buyers there.

Seems allot of short covering around today so far...

CanOz

 

[chops_a_must]

Could be the first stage in a move higher IMO.

A narrowing of ranges, volatility decrease...

By that I mean we're moving out of that in some indices.

 

[CanOz]

Could be the first stage in a move higher IMO.

A narrowing of ranges, volatility decrease...

By that I mean we're moving out of that in some indices.

Volume on these latest moves higher has been a bit light...

 

[CanOz]

We had a nice little lean on the Bid at the FESX prior close, so i leaned with them and traded back to the prior session POC for a 6 point scalp. The same time the DAX filled its gap, good long opportunity with 2553 as our target.

CanOz

 

[CanOz]

Well, pretty much according to script today. If we retest that LOD and fail, we could see a test lower again...

We'll see...btw i missed the test at 2551, sound asleep

CanOz

 

[CanOz]

Well, pretty much according to script today. If we retest that LOD and fail, we could see a test lower again...

CanOz

We tested the LOD and eventually failed, tested the break, then test the Prior LOD a couple of times. These levels have provided some great opportunities lately, mostly during the US session.

CanOz

 

[pavilion103]

I've had a bit of a look over this thread but haven't posted in 2 weeks.

Here is a nice setup I got tonight on FTSE.
Entry - 6264
Stop - 6258.5

This occurred at a very high volume area and the setup was in the form of a micro consolidation triangle.

Stop trailed to breakeven and then to 6271. Currently close to 5R open profit with 1 contract ($300AU).

We'll see how it plays out.

 

[pavilion103]

Here is the progress.

FTSE now at 6300. The trade is at 8R profit.
Stop is fairly tight now at 6292. Locked in just over 6R profit or $525AU

The other shapes on the chart are just some of my thoughts as it unfolds nothing concrete that I'm going by.

I've got this loaded up while I watch to some VSA webinars on my other screen.

 

[pavilion103]

I won't be doing this all the time but as a one off this is interesting. I'll post another one up.

It's now at around 6312 which is 48 points up from the start or around $720AU. It's now almost 11R profit.

Another break, this time from a triangle with declining volume. I'm continuing to trail the stop.

I won't be on here all night, probably some light reading and then I'll call it quits.

 

[CanOz]

You sure can pick the trend days can't you!

 

[pavilion103]

Well I'm going to close out here. 6323

Up 59 points.

Profit = 13.1R which is $885AU for one contract in this case.


I'm not sure what I'm trying to illustrate here just wanted to track this one tonight from early on and do a live update to show the thought process of someone new to futures trying to ride the trend.

I hope people found it interesting. I don't anticipate posting like this too often.

I'll be interested to see if it keeps moving up or not. It's already up 1.6%!!! I would have stayed in and trailed the stops, but it's time for bed!

 

[pavilion103]

You sure can pick the trend days can't you!

A great run tonight. It just kept going!

 

[pavilion103]

Well it finished up about 120 or so points = 2%, so there would have been a bit more profit to be had. Interesting day to pick. Good to get some screen time.