hello traders welcome to my recap session today we're going to be looking
at the ES 1000 volume charts from the last Friday she leave a 25th of a 9 tool
for my American friends 9/25/2015 now just before we get underway of course
thus trade setups are taken directly out of the day traders fast-track program
and our daily target is four hundred dollars a day per contract if you
haven't already done so if you go to full screen because of us make it a
little easier for you to look at the setups as I point them out on the screen
and of course if you haven't already done so please ensure that you read our
disclaimer because there's always risking trading so let's go directly to
the charts so if we consider the best of the best trading opportunities the very
best of course for consistency particularly for a new trader our
Trend trades trading with the trend and as we're aware we use the 34 EMA our
yellow line here for trend direction now when we start to see the 34 level out
along with the 89 and even the for 200 and our blue line is l eight this is
near we want to start to be fairly concerned but when we see a leveling out
of the moving averages quite often it's a very good early indication that we are
going to have a change in trend now what we did see here at this point we saw her
a nice double top actually I'm jumping ahead sorry traders will go down here
just here we had a nice t1 went up there we formed a double top if you like
come down we bounced off for moving averages again and we ended up with a
triple top and away the market fell now one of the greatest challenges for
traders is to maximize our returns portrayed and to do that and to stay in
a trade longer we can use the 8 EMA it's an excellent simple indicator
just the 8 EMA to keep us in a trade longer now my trading style is one of a
scalper that is I usually have a set profit target now my profit target in
ninety-five percent of the cases it's probably closer to ninety-eight percent
of cases is a minimum of one to one that is if I'm trading the NQ the NASDAQ and
my target is forty or sorry my stop so you say twelve ticks my minimum
target is 12 to 14 ticks as a minimum and most of you watching me trade live now
I've got a very very high strike rate but I focus on certain trade setups that
I know really well now in this particular charm we're looking at the ES
now the ES has got the highest volume out of all markets globally as far as
contracts go you've now got to be careful to say there because the euro
stoxx 50 the European market has some great volume there as well so I tend to
prefer most of the time trading the NQ's because i tend to finally get better
waves however you got incredible volume on the ES now also with the ES it's
fifty dollars per point and it trades in point two five percent increments so $25
sorry twelve dollar fifty increments so for by twelve fifty years fifty dollars
so my stop wants to be a minimum of one tick under my little swing low so as an
example if I was to enter this short here being a t7 and we can see here at
that stage zero actually would have looked like a t10 set up and let me just
mark that up for you just there okay my stub would have been a minimum of one
that tick preferably two ticks above that little swing high now went up there and
it tested it to the tick here and then it fell away really well now I wanted to
mark this up and just show you how effective the t25 s can be in a nice
trend market so what do we do to confirm the
trend we look at our 34 the brown line by the way is what i call the trigger
line 8 and that can be a really nice indicator to use along with the EMA 8 as
far as the crossover and look more of that in a moment but on the t25 you had
a nice entry one tick below there see you were in there you had another trade
entry there you could have got in there but one thing with that particular trade
look at the 8 EMA it's starting to go sideways then we had here we had another
T25 entry here now you may say okay samurai what about that one because he
8 EMA sideways yes but notice my white candle bar and what have I got down the
bottom here i've got to roll over we've got a perfect t2 set up so what a
lovely t2 there another lovely t2 there and T2 right here as well all
winners so to stain some of those trades you can trail behind the 8 EMA are blue
line and wait until you get a definite close over the eight EMA so moving right
along what i will do now is just rescale this okay we had a lovely 200 bounce
another 200 bounce and some fantastic divergence now with the 200 bounces and
the double top we've got here when they're with the trend there an
incredibly high probability trade they're just fantastic trade to take now
what is giving us our our indication here what we can see here of course is
that l eight EMA has gone up side 34 but look at our 200 and look at our 89 we're
still in a strong downtrend so you still want to be taking your trades to the
short side also what have we got here because my long-term Stoke is under the
AC level and i've got to roll over here that makes a very very nice t10 and away
the market collapses it collapses away beautifully down here this particular
trade ended up being a firm remember correctly at t89 here you've got a very
very nice and you could have got in here as well a nice t2 now this is
where if you're stopped was only one tick you would have been stopped out
here above your high but then it only ticked down four or five ticks and away
it went until we got that bounce so that if you had have traded that traders that
would have been I would say for most you a losing trade now the other thing to
remember here is that if this market is moving too fast because the price action
we can see here is say over here this is 909 this is 937 so you've got around
what's at around 30 minutes of price action you really want to be what I call
on your toes want to be really ready to move fairly quickly here now if it is
too fast particularly for a newer trader and i have to say with this sort of
market and even with the NQ most of you know I'm usually doing market orders
just because of the speed of a market and the way our trade now you had a nice
the 200 bounce here so while sorry it didn't complete what I was going to say
here moving to fast go to 1500 or 2000 volume now I know a very very
successful trader also that what he does he solely trades a 1000 volume but uses
the 500 volume for his entry now that works really well for him and his
mainstay for his trend direction is the 34 EMA one thing I want you to start to
notice here is is when you start to get these higher lows now you see we had one
we come down we tested it with a nice double bottom here and we had another
high low and away the market runs and you can see here that work out to be is
a lovely t10 just really keep an eye on those now what I've got here is another
to 200 hundred bounces you can see down we've come down and down stuff our 200 EMA
and here we've got another t7 with divergence in the direction of the
trend these are highly profitable trades traders now let's just quickly talk
about the divergence trades we had one right here a divergence trade divert but
then be very aware that when you come down and bounce on these longer-term
moving averages you'll bounce off of them nine out of ten times so be very
very cautious and remember when you take a divergence trade ideally you want to
make sure that you've got angulation that is a price action is moving right
away from your moving averages you don't want to have a channel formation as you
can pretty much see here if I was to draw let me just just do this for a
moment and let's just do a parallel line oops okay let me just move that up will
go there of that got virtually a perfect channel this is not what you want to see
when you're when you decide to actually take a counter trend trade and the reason
being it stays within that that channel the other thing you want to watch for is
that whoops when you're trading these is to make sure that where will we be here
is to really keep a count on the amount of waves that you've got in this new
trend one two three okay so you've had three and look what happens in you could
almost say that's a fourth one there and actually actual fact that's a t2 t2 t2
or there's three there and then the market fails at least temporarily so
remember keep a trade count and write it down on your trade sheet and hopefully
you've been taking notes as I'm running this sad little recording so make sure
that you keep a tally of the trades because after three trades you really
want to be extra cautious the other thing here is notice how the long-term
stochastic is now staying below the 80 line it's a really good indication and
then it forms by the way it's t10 which will come to in a moment that is a good
chance that you're going to have a change in trend now what's wrong
with this t10 we'll look at this here you're so close to the 89 in a 200
you'll see it regularly but what you've got here is a bit of a bump bounced up
before finally if I remember correctly it collapsed away and let's just have a
look at that there yes you had a lovely double top there and then finally it
fell away you can see there you can see right at that point there you had a t20
you had another t20 you had another t20 and then you had another t20 so what I'm
going to do is wrap this video up and I'll do another recording and we'll
travel or cover a little more on this market