One of the most predictable scalp trading patterns in emini futures day trading is the "after trend day" setup. This pattern starts (as the name suggests) with a trend day, which can usually be identified on a daily chart as a day that opens at one extreme and closes on the other, with a wider than normal range.
The next day is when the setup occurs: The market usually enters a period of consolidation, where prices swing quickly from a relative high point to a relative low point, often with a center point of the swings being the opening price for the day. Basically, This pattern gives the trader the edge by giving them a "heads up" that the next morning will most likely be a reversal trading environment, meaning the trader should look to sell strength and buy weakness.
With this setup the best moves usually happen in the morning trading session, or first 1.5 hours of the regular trading session (or even earlier, a sharp day trader might want to get started several hours before the open).
Now, we do not "know" where the top end and bottom end of the consolidation will be. However, If we have an edge on calling the "type" of day it is, we can establish trades that have a high probability of making money.
With this setup the best moves usually happen in the morning trading session, or first 1.5 hours of the regular trading session (or even earlier, a sharp day trader might want to get started several hours before the open).
Now, we do not "know" where the top end and bottom end of the consolidation will be. However, If we have an edge on calling the "type" of day it is, we can establish trades that have a high probability of making money.
One technique I use to identify "after trend day" support or resistance levels is to look at support and resistance levels from the prior day. For example, if the swing low of the last 2 hours of the trading day was 1215, I would look to buy this level the next morning with a slight price scale. By this I mean I would have orders in to buy at 1215.75, 1215, 1214.25 or something similar.
Another important support level is the overnight low. Look to buy with a small scale (see above) set just above and just below the overnight session low, and look to profit from a quick reversal back up.
Another important support level is the overnight low. Look to buy with a small scale (see above) set just above and just below the overnight session low, and look to profit from a quick reversal back up.
I do not usually advocate "scalp" trading, however strategic scalp setups (where a good trade can easily net 3+ points) like this are an exception. The post trend-day action is often one of the best, most reliable day trading setups that occur each month and is well worth learning.
If you master a few setups that repeat with some consistency like the "after trend day" setup, you might find that in a few hours in the morning a few days each month, you can generate an entire month's worth of income!
If you master a few setups that repeat with some consistency like the "after trend day" setup, you might find that in a few hours in the morning a few days each month, you can generate an entire month's worth of income!
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