Day Trading Opportunities come in 3’s for Crude Oil Futures, Gold Futures, E-mini Futures

Did you know that most moves in the market come in 3’s?

What does that mean?

It means that when we see the market trending, I will look for 3 opportunities to trade with the trend, and then the 4th opportunity to trade with the trend I will look for a reversal instead.

This simple trick is something you will ALWAYS see…and today we discussed where to look for it.

– Review 1st and 2nd trades today

o First was a loss, and then we took the market feedback and turned around and entered as a long on the 13-range

o Second trade was a HUGE winner based on the feedback from the market on the first losing trade.

– Can we use a double-top/bottom as an entry level?

o Yes, but they will be a lot higher risk

o https://www.sidewaysmarkets.com//2010/05/26/easiest-way-to-find-double-tops-bottoms/

– Waves comes 3’s, what does this mean?

o The motion of the market typically comes in batches of 3’s
o We will see 3 wave patterns and then the 4th will fail
o We will see 3 breaker patterns and the 4th will fail

 Keep an eye on these b/c a 4th pattern is now going to be a heads up for a 2-step reversal

– How do we use the 2 time and sales windows

o Used for reading the tape
o 1 filtered
o 1 is not
o I am going to use the Filtered time and sales for my big money to qualify the entry, exit, targets.
o I use the unfiltered to watch for the speed of the orders

 I also use the Pace of Tape Indicator to measure the speed of the orders as well.

– How do we use the Pace of Tape Indicator

o Measures the speed of the orders coming into the market
o I want to trade when I see rising speed
o I want to sit on my hands and avoid trading when I see decreasing speed.

 More importantly, if I see RED P.o.T and its decreasing, then I will NOT take the trade.

– Tick Chart & POT (144t and load the traderoom_fast, and then add POT)

o The template is not current, I will update today
o 144-tick
o Load my template: traderoom_fast and then add the Pace of Tape

 Ive done this and saved this as a new template: ‘TickChart’

o I’m watching the highs and the lows of the trading range and im watching to see the relationship with the pace of tape indicator

– What is the role of your futures broker?

o Your broker a licensed (regulated) entity that is allowed to do business with an Futures Clearing Merchant (FCM)

o Your broker takes ALL the margin risk for your trading

 Your broker will ask for $1000/contract for margin
 But if you lose MORE then $1000/contract your broker takes the hit.
 Your broker also works with the FCM to make sure you get the most accurate information and that your trades are being execute correctly.

 If there were no futures brokers?

• No regulation for each trade you take
• There also would be no direct access to the market for SMALLER traders

o We wouldn’t be the BIG MONEY traders that always get access to the market

– Do we use new trend lines every day?

o https://www.sidewaysmarkets.com//2010/07/27/trend-lines-for-day-trading-futures/

o No, we do not
o We use the old trend lines because we know that previous support will be future resistance
o Is there any time when we remove a trend lines?

 When the market has stopped respecting the trend line and no sloppy around that level.

• Once the trend line stops holding/bouncing, then look for a better fitting trend line.