Another Rule of Thumb video. This time about Trend Days (or Range Days if you prefer). These one direction, large range days Open at one extreme and Close at the opposite extreme.
The best game plan on a Trend Day is to enter on a pull-back and hold to near the day’s Close. For me that’s impossible – I’m too set in my ways and always punching out at or near my 4-point target.
Another approach is to enter on a pull-back and set your target 1 to 1.5 points past the previous Low (or High in an uptrend). Once the strongest part of a trend day is over, the market will continue to wiggle around and push to new Lows, breaking the previous Low by a little each time.
Of course early recognition that today is a Trend Day is key. It took me a while on Thursday. But Trend Days just feel different – like a waterfall, just cascading down to new Lows. And as soon as 11am Chicago time rolls around and there’s no hint of a Reversal, you know not to touch any Reversal trade.
And here’s the original analysis of Emini range days, along with some schlocky Tom Cruise psychobabble 🙂
Good luck with your Emini trading.