Emini Day Trading – Real-Time Video Example (15:51)
Every day is different Emini trading and every trade is different. However, patterns re-occur again and again. When looking to enter a reversal trade, look for Exhaustion volume first and then price exhaustion. Then check for Professional activity to make sure they are taking profits and reversing too.
Emini Day Trading – Setup and entry signal
In this Emini day trading example the setup had the following pattern:
- Exhaustion selling volume on Better Momentum (large cyan blue dot)
- Then Bullish divergence showing less selling (small red dot)
- Professionals active at the last two swing lows (blue down bars), and
- Cyclical support on price (red dotted horizontal line)
Entered long at 1,228.25 with a 4 point stop and 4 point target – which is my usual risk:reward setting. The market immediately started to go in my favour. It looked like I’d caught a trend reversal point, so I stretched out my profit target to 8 points.
Emini Day Trading – Example 2 Nov 2011 (1,500 tick chart)
Emini trend moves typically run for 10 to 12 points – so if you catch a reversal point you should be looking for the trend move to last about that long. However, trend moves are never straight up or down and are punctuated by counter-trend moves or retracements. And these retracements typically happen mid-way through a trend move. For that reason I set my profit target at 4 points and hope to avoid any pull-backs.
This trade was no different. At the 4 point mark is pulled-back almost to the entry point. But I was confident I had the trend direction right because the retracement was being led by the Amateurs – yellow down bars.
Emini Day Trading – Exit signal and end of trend
As soon as the up trend had been “tested” and the lows had held, the up trend move could continue strongly. The exit was a classic Pro Signal with the following characteristics:
- Professionals taking profits on new highs (blue up bars)
- Exhaustion buying volume on Better Momentum (large cyan blue dot), and
- The trend finally finished after an “End of Trend” warning signal (‘END’ text)
I normally don’t hold out for 8 points – as I prefer to be in and out for 4 points and be done trading for the day. But this turned out to be a nice trade and a great example of the ‘Better’ indicators at work.
