Emini day trading with multiple time frames example today. I had a Short bias from Friday's analysis and picked up my 4 points on an early Short trade.

Remember the charts below are of the continuous Emini contract that includes both day and night sessions (@ES in TradeStation).

Emini Day Trading – High Time Frame (Emini 2,097 tick)

In my highest time frame chart – which I use to determine trend direction – we were already in a down trend from Friday's activity. At the beginning of Monday's trade the Emini "Pulled Back" into a cyclical high turning point – setting up for a Short trade.

Emini Day Trading – Middle Time Frame (Emini 699 tick)

In the middle time frame chart we also had a cyclical high turning point that was taking place at resistance in a consolidation zone.

Emini Day Trading – Low Time Frame (Emini 233 tick)

In my lowest time frame chart you could clearly see the "complex" correction that was taking place in pre-open trading. The Emini had been bouncing between support and resistance in an ascending triangle consolidation zone. The Better Sine Wave marks the highs and lows of this type of move beautifully.

I went short at 883.50 and took profits at 879.50 – my 4 point profit target – then went to bed. Don't forget I live in Sydney, Australia, so it was the middle of the night.

Good luck with your Emini day trading.

In my Emini day trading I use cycles with volume confirmation. The strength of this approach comes from 2 things:

• Both cycles and volume are leading indicators of market action, and
• Cycles and volume are non-correlated measures of market strength

This approach also has the advantage of working in all time frames, ranging from tick charts to daily, weekly and monthly charts. The example below shows a 15 minute Emini chart with a short trade setup.

Emini Day Trading with Cycles and Volume (Emini 15 minute)

The setup came on Tuesday after the FOMC announcement. The Emini rose 30 points on climactic volume and ended the day with a couple of High Volume Churn bars (colored blue). This indicated that new sellers were entering the market, preventing price from rising and keeping the bar's range small.

The next day, we had a Pull Back to the 900 level. The Better Sine Wave indicator marked this Pull Back automatically with the "PB" text on the chart. The advance after a Pull Back is equivalent to an Elliott 5th Wave and finishes with an "End of Trend" warning signal. Again marked automatically with the "END" text on the chart.

Note for users of the Better Sine Wave: In lower time frames (tick charts or up to 5 minute charts) I wait for a cycle turn after an "End of Trend" warning signal before considering a reversal trade. This is because the market needs some time to exhaust after a trend move and start moving in the opposite direction. In higher time frames (15 minute and above) the market can reverse more quickly after the "End of Trend" signal.

This "End of Trend" advance was made on considerably lower volume. This indicated that there was less demand and not enough buyers to push past the 915 level. Confirmation came with a High Volume down bar (colored white) and time to go short. Cycle tops were also in place on the 81 minute, 135 minute and daily time frames, which added to this high probability trade.

Good luck with your Emini day trading.