83 Ticks LIVE Today. Aussie Dollar & E-Mini ES Profits Today

Market Gave us clues today…

830am EST

– Dollar index futures have dropped like a rock earlier today, but now trading sideways

o Low average true range, lowest of the week

o Speed of the tape is slow

o Slower timeframe shows a wide sideways range, and we are at the lows of that range

o Fast timeframe shows a trending down, and recently we went sideways.

– Euro futures have climbed off their lows from last week

o Low average true range

o Slow speed

o Fast timeframe is sideways (short term trend)

o Slow timeframe has a flat trigger line = longer term trend is also flat

o We want to wait for a SHORT term trend to develop.

900am EST

– Crude Oil Futures are trading sideways dramatically

o Flat trigger on the slow chart

o Fast chart shows us trading around today and yesterday’s open of the market (beware)

o Speed is slow

o Average true range is not bad

Example of Slower timeframes:

– 34-range / 21-range

– 30-minute

– 328-tick Chart

Example of Fast timeframes:

– 4-range / 8-range

– 2-minute

– 89-tick chart

Define a scalper:

– Trader who seeks to take small pieces of profit from the market numerous times a day

– They do not hold overnight

– They only hold their trades for seconds to minutes

– Risk/reward ratio is very important

Define a Day Trader:

– Seeks to capitalize on small moves in the market, looks to hold the position to maximize profits.

– They will not hold overnight

– Risk/reward ratio is also very important

I’m a hybrid: day-trading scalper

– Look to take small pieces of profit numerous times a day, however, I also use a runner, to try and catch the big moves.

– Our trade management strategy allows us to make profit when we have a little 5 tick move, but we also don’t limit ourselves and miss the bigger 50-tick moves!

What to do with a slow, sideways market?

– Use a slower timeframe and look for larger trading patterns

– The fast timeframe will be sloppy, so move to a slower chart and look for the clean patterns

Using Multiple timeframes:

– To be more conservative, to see more confirmation, use the slower timeframe to confirm on the faster timeframe

– Slower timeframe:

o Downtrend: look for shorts on the fast chart

o Uptrend: look for longs on the fast chart

o No / Sideways: long or short

Dollar Correlation:

– Dollar rises:

o Crude fall

o Euro fall

– Dollar is sideways = everything else is sideways

– Dollar @ open = everything else will be at their open

– Look for a trending dollar = trending markets

– DX-Pattern uses the Dollar Index as a correlation to the Euro, or any other currency future.

5 trades today, 5 winners

+83 ticks, $920usd

Only 4 contracts needed to achieve this today!

See you tomorrow @ 745am EST for the live trade room session.