Monday’s narrow range of only 10 points made Emini trading tough. But I always find trading in the direction of the higher time frame cycle analysis helps.
Cycle Analysis in Higher Time Frame (Emini 2,097 tick)
The highest Emini day trading time frame I look at is the 2,097 tick bar chart. As you can see in the chart above, the Better Sine Wave support and resistance levels kept you trading in sympathy with the flow of the market.
Cycle Analysis and Multiple Time Frame Convergence
For taking entries, I’ll look for multiple time frames to line up. I particularly like it when the 699 tick bar chart cycle turns an then the 233 tick bar chart cycle turns after that (or simultaneously). If I’ve got some volume confirmation (high volume churn, volume momentum divergence, etc.) I’ll take the trade.
The chart above shows a triple cycle analysis convergence. In the highest time frame (2,097 tick) we had cycle support. In the mid time frame (699 tick) we also had cycle support. The move got underway when the Better Sine Wave signaled an "End of Trend" warning signal in the lowest time frame (233 tick).
This caught the low of the day nicely. They’re not always this perfect. But the bigger moves will come out of multiple cycles lining up.
Trend Line Congestion (Emini 81 min)
I’m looking for a larger range couple of days coming up. We’re in congestion in the 81 minute chart (white bar) – suggesting a larger range move is on the way.
Pull Back in Up Trend Approaching (Emini 81 min)
We’re also about to form a Pull Back in uptrend, using cycle analysis on the 81 minute chart. After this forms it suggests the market will continue to rally – but let’s wait and see. Good luck with your Emini trading.