Luckily the market isn’t schizo. How hard would that be to trade! There are patterns that repeat – again and again and again. Today we had a classic 11am reversal and two trend moves. Hope you weren’t fighting the reversal. Good luck with your Emini trading.
Rules of Thumb Archive
Here are all the Emini-Watch videos on day trading Rules of Thumb. These Rules of Thumb help me avoid low probability or losing trades. For example, after a big trending day don’t expect another big range day. Much better to set tighter profit targets after a big ranging day or not to trade at all.
The key videos explaining these day trading Rules of Thumb are:
- Rule of Thumb #1: Market Does Not Like Flat Tops
- Rule of Thumb #2: Expect Consolidation After a Trend Day
- Rule of Thumb #3: Reversals Happen Before 11am
- Rule of Thumb #4: Expect Continuation After a Reversal Day
- Rule of Thumb #5: Trend Days Close Near Their Extreme
- Rule of Thumb #6: Maximum Two Trend Moves per Day
- Rule of Thumb #7: Exhaustion Volume During the Day Session
Classic example of one of the day trading Rules of Thumb today. The rule goes like this. If you see an Exhaustion Volume signal pre-open, wait until you see another Exhaustion Volume signal during the day session to enter a reversal trade. Exhaustion pre-open is usually not enough to reverse a market – you need […]
Monday, Tuesday and Wednesday showed some picture-perfect day trading Rules of Thumb. Monday was a Reversal day, Tuesday was a Trend day and Wednesday was a Consolidation day. Watch out for Consolidation (or low range) days. You can be so amped after a Trending day – like Tuesday’s 40 point range – that you’re tempted […]
Got a couple of good questions by email about Bearish Divergence and End of Trend Signals. When day trading don’t forget these Rules of Thumb and in particular, we get a maximum of two trend moves in a day. Good luck with your Emini trading.
We had a great little Emini Long setup on Wednesday around 11:30 am (Chicago time). It had so much going for it. I count 7 principles (or rules of thumb) at work: The uptrend is not over until we see Exhaustion buy If the market has not reversed by 11 am we’re not going to […]
What was so nice about that Emini sell-off was that we got it all to ourselves. The Asians and Europeans didn’t spoil the party by getting the move going overnight. We set up with a perfect little Amateur led rally right at the Open and then BOOM! “Barry, THE EMINI SELLOFF, what a terrific video. […]
The Emini day trading Rules of Thumb section is going well. Almost done with only a couple left. These rules really help me – they stop me making stupid mistakes and taking low probability trades. Today’s video is all about there being a maximum of 2 trend or directional moves per day. We either get […]
Let’s keep this short and sweet. We had a Reversal Day on the Emini – right on the 11am cutoff. Blue professional bars came in as we broke momentarily below 2,000. We’ve rallied and we’re now sitting under the 2,020 – 2,024 resistance zone. Continuation tomorrow should take us through – let’s see. Good luck […]
Well we finally got the Reversal Day on Wednesday. I think everyone’s been waiting for it – especially as we approached a 50% retrace of the recent sell-off. But it was important not to jump in too early. Got this email on Tuesday from Denis: “Dear Barry, Thanks gain for sharing with us your insights […]
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 […]