10:30 Reversal Pattern; Channels, Wedges and sideways trading ranges

– 10:30 Reversal

o Market opens at 930am, retail trades and locals get into the market (no big money yet)
o Money managers (big money) doesn’t enter the market until they SEE their first opportunity

 Youre trading a 30 min chart, which requires at least 2 candles to set up a pattern
 2 candles x 30-min = 1 hour

o big money enters the market when THEY want to, around 1030, 1 hour later, 2 candlesticks.
o Focus on the e-mini Russell, S&P, YM, NQ

– What do you do when you have conflicting patterns?

o Channel and Wedge

– Benefits of being a futures traders

o Stocks require a min of $25,000usd
o Stocks will tax your income as a short term capital gains on 100% of the earnings
o Stocks go to ZERO all the time
o Stocks are easily manipulated with lots of times with very low volume
o Forex is the same, no tax advantages, all taxed at 100% at capital gains.

 Futures traders have a 60/40 split

• 60% long term
• 40% short term capital gains
o 20% savings

 Futures are classified as commodities, not equities.
 Series 3, very hard test, similar to series 7 for stocks/options

o You only need $3k-$5k to get started

 You don’t need the $25k you need for stocks

– Trade Management:

o Scalper: 2 options

 4/8/Runner (6 tick stops
 5/10/Runner (6 tick stops)

o Day Trader will use whatever the market gives us, and we will train you on that more details a member.

– Do we add to our positions?

o When we see another good pattern.

– When does crude oil rollover?

– Contract tick values for Dollar

o Check the blog

– Inside vs. outside days

o Inside day = market is trading inside the range from yesterday

 Always considered to be a higher risk environment

o Outside day = market has traded and stayed above the highs or the lows of the previous day’s trading range.

– What are your timeframes, and how do they equate to time charts?

o I don’t use many time charts for my trading, but they can be similar to…

o 4-range = 89t, 1min, 2min
o 8-range = 144t, 2min, 3min
o 13-range = 144t, 3-5min
o 21-range = 233t, 5-10min
o 34-range = 328t, 13min+
– Will jobless claims affect crude oil?

o Most likely will: if jobless claims rise…economy is weaker…weaker dollar…strong crude oil.
o Best advice is to ignore the fundamentals and watch the technical set-ups.

 Instead of worrying about the effects on crude, watch your charts, and look for the patterns instead.