Day Trading Gold Futures and Crude Oil Futures with 2-Step Pattern

Watch today’s video and learn all about the many ways we use this day trading pattern on ANY market that’s moving.

BONUS! We also added a lesson on trend lines as well…do you know how to draw trend lines correctly?

Did you know that some trend lines are more important than others? Watch the video and see why

 
– 2-Step Pattern Review

o Reversal pattern
o Look for these to sell the highs and buy the lows
o Highest percentage 2-step trades come at high of day, or the low of day
o We also like to use the 2step to short a double-top, or to buy a double-bottom

– Colors on the Time & sales Window

o In the download section of the ADV course you will see the time and sales PROPERTIES
o Use this document to match your time and sales to mine!

– Stops and Targets

o Scalp trades have the same stops and targets
o Day Trades do not
o Swing and Position trades do not either
o I will use the market to tell me where my stops and my targets will be.
o ATM strategy = 20/30/40 and a stop of 21 ticks

 Then I will move those to make sure they are correct.

o I always need to know where my stops and targets will be ahead of time, don’t do this AFTER you enter the trade.

– Drawing Trend lines

o Do we use the wick in our trend lines? Yes! we use the entire candle!
o Check the blog, under trade room resources
o https://www.sidewaysmarkets.com/trend-lines-for-day-trading-futures/

– Open of the Day level

o I use 12am start, and 12am finish times
o I use the 4range chart to tell me the accurate open of the day
o I don’t use the slower timeframes to define the open b/c it tends to be incorrect by a few ticks.
o I use the fastest timeframe to identify the TRUE opening price @ 12am midnight.

– Looking for a trade on a 13 range chart and momentum confirms, but the momentum on 21 is opposite, would that cancel my trade out?

o Yes, but you can also look for compensating factors
o Example: looking for a short trade

 13-range momentum points down (good)
 21-range momentum is pointing up (bad)
 Look for compensating factors:

• Is the 21-range momentum is it overbought, and possibly about to shift and point down (good)
• Do we have increasing speed while we see SELLERS?
• Increasing speed with added sellers will soon make the 21-range change direction, so this will be a good place to enter.