151 Ticks Live. Day Trading Russell Futures contracts

800am EST

Locating double-tops and double-bottoms are easy:

– Start with the current price on your chart

– Move up looking for the first swing high

o Is that a double-top?

– Then move to the next swing high?

o Is that a double-top?

– When you’re done to the upside, then move to the downside

– Move down to the first swing low

o Is that a double-bottom?

– Repeat as necessary all the way down

– Then look for HIDDEN double-tops and bottoms and double-check that you didn’t miss anything.

820am EST

Dollar Index Futures are trading sideways in the same trading range from Monday

– Slow timeframe is sideways

– Fast timeframe is sideways

– Speed of the market is very slow

– Very low average true range

– This information tells us to expect a slow market today. The dollar the leads the way, and a slow, sideways dollar is going to mean slow, sideways markets for us to trade today.

830am est

– Crude Oil futures are confirming what we were expecting to see b/c of the dollar index

o Slow and sluggish price movement

o Low average true range

o Sideways market, same trading range from Monday

o All signs point to ‘be careful’ because these markets are clearly looking for some direction this week.

900AM EST

– Gold futures gave us a nice winner on a breaker long for a scalp entry on a 4 range chart for +21 ticks

– Now we’re watching a slower timeframe, 13range, for a 2-step long above 45

o Stop = 12 ticks, and targets = 8/16/Runner

o 6-tick rule needs to be 10-ticks now b/c I have a 8 tick first target and add 2 ticks for slippage

o Now check our medium and slow timeframes to make sure IF this trade triggers we have enough room for the trade to run

What are the green and blue colored charts in your workspace?

– our medium timeframes, we use the thin yellow line (trigger Line) as support/resistance to consider when we take trades

Pace of Tape Indicator:

– measures the speed of the orders coming into the market

– available open-code to our advanced members, you OWN this indicator

– three colors

o Red = slow speed

o Yellow = moderate speed

o Green = fast speed

– We want to avoid trading during the SLOW times in the market and we look to enter trades when we see FAST speed in the market

o You don’t always need green POT

o Its ok using RED POT

 As long as the RED POT is not DECREASING

– The best ways to use the pace of tape

o To define market sentiment

 If the speed is rising, that confirms the move

 If speed is falling, we expect a reversal

o To trigger our entry

o To tell me when to take profit

 Our first gold trade today we watched for RED pace of tape, which told us we needed to take profit early, and it worked!

1115am EST

– Watching Gold futures, but we’re starting to see signs of lunch…

o Slow speed of the tape, < 100 very slow

o Flat trigger line on slower charts

o Almost all the trigger lines are the same price level

o Momentum has not been able to confirm the entry on the last 3 potential trades

 When momentum cant confirm (pointed up for a long trade, or down for a short) it tells us that the market is losing its power, its becoming very weak, fewer people in the market, and its not going to show us those strong moves.

What is the 6 tick rule?

– Applies to the scalps (10-tick rule for the slower charts)

– We want to make sure the trade has enough room to run

– We use a 4 tick target, and we add 2 ticks for slippage = 6 ticks

– If you have a 10-tick target (1st target) this will now be a 12-tick rule (10 +2 = 12ticks)

– If I don’t have enough room for the trade to work, I risk getting stopped out.

7 trades today, 7 Winners

+151 ticks, $1,510usd

Only 4 contracts needed to achieve this today!

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