I am not a good teacher, so bear with me..The chart has the lines tool I spoke of earlier..and my pivots displayed..
The method used is to measure the opening YM candle, and draw the green/red lines for open range…
that allows the 2 gold lines, for expected open move and 9:30 reversal support to be drawn…as well as the the 3 extended target lines above , or below..
opening candle opens 15-20 points..end to end
Lines are drawn
YM then moves 30-50 points (20040-20070 today )
exit the trade at a target line or pivot bounce
The futures indexes will almost always reverse at 9:30am..
if the reversal stops at the Gold Line, YM has a good chance to continue back up to a higher target
if, like today, it breaks down below the gold line for 30 mins or so, and then tries to move up..it will usually top out at the previous target, and then sell off the target line , back into the open range area..like this mornings -57 point move..
The 9:30 reversal/continue/sell off will usually go until 11:00, when dead time for lunch takes over…take your lunch break
11:00am – 12:30/1pm Dead time..
12:30/1pm after lunch, traders come back and make a small push up/down, usally good for 20 -40 points most days..after which it slides sideways into the 2pm pro hour..I dont play the 2pm – 3pm pro hour..I am a beginner, learning to trust my system..I make my 40-60 points between the open and lunch zone..
The above is what I was taught in the Futures class I took..its one of many trade methods..I like it because it works consistantly, and its easy to learn..I am good at trading fib lines and PP levels..this method does the same..for a futures trade..
Most of us here trade for income..be it selling options, or futures..Futures is by no means easy..I am getting better at it..I set easy to reach goals by which I can live by the below..
1. set your exits and entries…ahead of time
2. do not hesitate to enter or exit..never 2nd guess your discipline or stops
3. wait for the moves and lines and validate with the indicators..when in doubt, get out..
My Plan goals for the YM;
40 points daily..
5 contracts per trade
20 point stops
risk = 500.00 ( 25/point x 20 points )
40 points daily = 1000.00 weekly/4000 monthly
Today I made 70..it doesnt seem to be a terrificly difficult goal..the more I learn, hopefully the better I’ll get…