Day Trading on E-Mini Future is possible almost 24 hours a day. Almost every day of the week.
CUE Global is a complete system that is used by investors and traders. From Long Term Investment to Swing Trade to Day Trade. All over the world.
Traders use CUE System to trade all sorts of instruments: Stock, ETF, Option, Future, Forex.
On 15th August 2016 I had posted a blog describing in detail one way I use CUE System for Forex Day Trading. You may read that Forex Day Trade blog here.
And just a few days before that; on 11th August 2016; I also posted a blog describing a real life Stock Day Trade using CUE Charts. You may read that Stock Day Trade blog here.
Some readers requested me to post a blog on Day Trading E-Mini Future using CUE System. I am writing this blog to explain that.
CUE System techniques used to Day Trade Stock, Forex, Future, etc. are interchangeable. So all E-Mini Future Day Traders will gain valuable insight from the two blogs mentioned above. Just as Stock and Forex Day Traders will gain valuable insight from this post.
In the Stock and Forex examples, I looked at only the instrument that I was trading. I did not use correlated instruments. Instead, I looked at Longer Timeframe (Daily and; optionally; Weekly) to decide my Trade Direction and used Real Time CUE Chart to execute the Day Trade in that pre-planned direction.
That is not the only approach I use for Day Trading. Sometimes, I look at multiple correlated instruments; using same Real Time Intraday Timeframe, and then choose the one that is likely to give me the Highest Probability of Success or Best Reward Risk Ratio or both.
For E-Mini Day Trade, I often use this correlation approach.
I will use two symbols. One is ES - E-Mini S&P 500 Future. And the other is NQ - E-Mini Nasdaq 100 Future. These two symbols are usually strongly correlated. Moving up and down together on an intraday time frame. But not necessarily with the same force. Some days ES is stronger. And some other days NQ is more powerful. For Day Trading in the Long direction, we chose the stronger of the pair. And for Shorting, we use the weaker of the pair.
Now, what is meant by "strong" and "weak" here? Is it the different percentage moves that we see in Real Time data feed? Obviously, that is one estimate of strength. However, from a Superior Profit Day Trader's perspective, that is not the optimal way to measure force and use it in a trading decision.
What works a lot better is to see the movement of the two symbols within a set of reference price levels or Pivots. The CUE Fine Tune Real Time template is ideal for that.
This CUE Fine Tune template is designed specifically for Day Trading. You can also use it for precision entry of Swing Trading.
Fine Tune template has automatically calculated dynamic pivot levels (horizontal dotted lines) as well as very smart auto-drawn-trendlines; Memory Lines as we call them. These provide the reference price levels to help us decide which symbol is stronger and which one is weaker.
CUE Fine Tune also has the very responsive (and thus; suitable for Day Trading) Stretch Release up/down arrow signal to decide quickly and unambiguously exactly when to enter a "reversal" trade; trade opposite to the immediately prevailing direction.
Let us put all that together in a real life case. This Day Trade opportunity came during regular E-Mini trading hours on 15th August 2016. I will use the 10-minute chart here. However, traders can use 5 Minute or 1 Minute interval too if they choose to do that. Personally, for Day Trading E-Mini Futures, I find 5 or 10 Minute interval provides the balance between being on the trade early. So I can capture a significant chunk of the move. But not too soon that I get whipsawed often.
Here are the charts of ES and NQ - side by side - using CUE Fine Tune template using 10 Minute interval.
The numbers below refers to the respective markings on the chart:
(1) I first assess which one of ES and NQ was stronger at Close on the day before. That is, at Close (4 PM EST) of the day on 14th Aug. ES had Closed somewhat below Day's High whereas NQ had Closed almost at Day's High. So, at Close, using the Day's High and Day's Close as reference levels, NQ was stronger on 14th Aug.
(2) Next day, on 15th August, both ES and NQ opened with Gap Up.
(3) Both ES and NQ went above Early Range High and became Overbought at that level; as indicated by Stretch signal (cyan and green dots on top of the Candle).
(4) Neither instrument could continue the rally from the Overbought Stretch condition. Instead, both became weak as seen by Stretch Release signal (down arrow on top of the Candle). Both symbols displayed three Stretch Release indicator three times before they fell.
Both symbols looked similar at this point on the chart. However, there were signs that ES was weaker than NQ. For example, ES had a Candle Flow color turning Bearish magenta before NQ. Also, on the third Stretch Release Candle, ES crossed below Early Range High. However, NQ remained above Early Range High pivot level.
Using the above analysis, I concluded that ES was weaker than NQ. Both at 14th Aug Close and also after 15th Aug Open.
And therefore decided that for a Short trade, ES would be a preferred candidate.
I will now explain the Short trade execution using the ES chart below using 10 Minute Interval and CUE Fine Tune template.
The numbers below refers to the respective markings on the chart:
(1) I took the Short trade on the third Stretch Release sign. ES crossed below Early Range High at the same time. And Candle Flow color turned Bearish magenta. These three signs together made the Short entry a High Probability Trade.
(2) I placed Stop Order immediately upon entering the trade at just above Day's High. This was a small risk amount relative to ES's usual daily move range. This Stop Level was never violated.
(3) After my entry, ES fell. And the trade Profit soon surpassed the Risk taken. I closed half position at this point.
(4) Immediately after booking partial profit, I moved Stop to Breakeven level. That is, to the Entry Price Level. Breakeven Stop was never hit.
(5) At day's Close (4 PM EST), I closed the remaining position.
Following are the salient points of this disciplined and profitable Day Trade using E-Mini Future.
A) I selected ES over NQ for a Short trade by observing the symbols' move within CUE Fine Tune pivot levels.
B) I patiently waited for both NQ and ES to turn Bearish. And executed the trade without hesitation when multiple signals were aligned.
C) I placed the Stop Order immediately upon trade entry to manage risk.
D) I booked partial profit as soon as Risk amount was covered; making it a Risk-Free Trade from then onward.
E) I closed the entire trade at the end of the day. I had planned it as a Day Trade. And closed it as a Day Trade.
This Day Trade was taken on E-Mini Future. However, the same technique of choosing one particular instrument from multiple correlated instruemnts for Day Trading by usign reference pivot levels of CUE Fine Tune template can be applied to other trading instruments like Stocks in similar industry, to Forex pairs etc.
For learning more detail of the pivot levels, Stretch Release, Candle Flow, etc. - which are part of CUE Global System, you may refer to the training material at Superior Profit Education Center.
And also feel free to register for our Live Class held on a regular basis. Where you will meet other traders from around the world discussing Market and potential trade set-ups.
Superior Profit Investors join every week on Saturday for a Live Class where we discuss previous week's market and look for trading opportunities for next week.
We had our last class on 13th Aug, Saturday.
One of our traders from Australia was keen on Day Trading Forex using Real-Time Charts. We pulled out some Live Charts and discussed some ways of how to profitably trade Forex using CUE. Here is a summary of that for those who could not join us in Live Class.
Forex is one of the slowest moving instruments in the Market. The perceived high profit (or loss) in a short time comes from higher leverage. That tends to attract many traders to Forex with the hope of making a significant profit starting with a small capital. As our trader friend told in the class: "Profit is easy to come and easy to go in Forex."
Well, in reality, for most (if not all !) beginning Forex traders with small capital and lack of system and discipline, profit is more "easy to go" and "difficult to come".
I encourage new traders first to prove to themselves that they can make a profit in less leveraged instruments. Like, using Stock. Or may be using defined risk Options. Once a beginning trader can get consistent profit in less leveraged instruments, she may move on to high leveraged instruments. Be it Forex. Or Future.
The reason for this advice is to establish the technical aspect of trading firmly in trader's brain. So much so that in front of the live market the trader does not think. Traders' response to market moves become automatic. Like walking on the street. Once that happens, the trader is ready to take on higher leveraged instruments. It is like learning to drive slowly first. Without making an accident. Or at least one that is not fatal. And then only - if one wishes so - to move to higher speed cars.
Besides, the greater leverage of Forex (and Future) and the fact that these Markets are open 24 hours, make lifestyle and psychological aspect of handling them more difficult.
With that note, let us look at some ways a Superior Profit Trader takes Day Trade on Forex. This illustration is right from our last Live Class.
Below is a CUE At A Glance view of AUDUSD (the pair selected by our Australia trader in the Live Class).
The Memory Resistance lines in Weekly and Daily were already there long before the Candles came and hit them from below. And we knew beforehand that the Memory Resistance was around the level 0.77300 approximately. They were already there before the price comes to them. And we could plan our trade at that price level.
The Memory liens have zero lag. This zero lag nature is a significant advantage of the Memory line in Day Trading. Compare this to most other traditional indicators that have lag and hence tend to be ineffective in Day Trading.
In Superior Profit Way, we use several Zero Lag indicators for Day Trading. Memory Line is one. Others include Watermark on Daily Chart, and Daily Range, Early Range, Power Range on Intraday Real Time Chart.
Also, we use Stretch Release on Real Time Chart for Day Trading. This CUE indicator is very responsive; has tiny lag. Making it suitable for Day Trading.
In the At A Glance chart, we saw that the Memory Resistance Levels in Weekly and Daily charts were same. And that gave us additional confidence to look for Low-Risk Short Trade on AUDUSD at the Memory line price level.
To execute our trade, we drew a horizontal line at the Resistance price level of 0.77300 on Real Time Chart using 10 Minute intervals (we could use 5 minute or other Real Time interval as well) and waited patiently for the price to come up to this level and then tilt down; showing that Memory Resistance was working. And then take our Low-Risk Short Trade.
Below is the 10 Minute chart on AUDUSD with the Resistance level drawn on it. Following the marked comments numbered 1 to 7, we can see how we confidently Shorted AUDUSD as a Day Trade at the pre-planned price level and booked profit.
In the above Real Time chart, we did not use powerful CUE Stretch Release indicator. Neither did we use our Candle painters; Traffic Light or Flow coloring.
Let us look at another Day Trade opportunity the same AUDUSD presented a shortly after we booked profit in the last illustrated Short trade.
Below is AUDUSD chart on next day using CUE Fine Tune Template. Now we have Flow Candle coloring on the chart. And we also have Stretch and Stretch Release indicators drawn on the Candles.
Following the notes numbered 1 to 6 we can see how; again; we entered and exited a Short Day Trade on AUDUSD profitably.
Let us make some noteworthy comments based on the way the two Superior Profit Date Trades were executed. They apply to all Superior Profit Trades we take. And need to be emphasized even more strongly for higher leverage instruments like Forex and Future etc.
1) Having a prior idea of Trade Direction is necessary. In both the examples, we used Memory Resistance to decide our Short Trade Direction.
2) We wait patiently for Price to give us the signal that Resistance is holding before triggering the trade. In the first example, we waited for Price to come back below Resistance Price Level. In the second case, we waited for Stretch Release arrows to appear.
3) We pre-define the Stop Level. And put a Hard Stop Order as soon as our Short Entry fills. In both our Short Day Trades, AUDUSD did not trigger the Stops.
4) We pre-define our Initial Profit Target and put Profit Taking Limit Order at that level. We book profit without being greedy. At least on half position size. And move our Stop on remaining position to make sure it is a Risk-Free trade from then onwards.
5) We don't overtrade. Once we complete our planned Day Trade, we stop.
These were just two examples of how Superior Profit Traders take profitable Day Trade on Forex every day.
Once you study the CUE System using the detail training material at Superior Profit Education Center, you will learn several additional ways to pre-plan and execute Day Trades confidently.
And you can take the Day Trades on Forex, Future, Stock or any other instrument that fits your risk tolerance and lifestyle.
While Day Trading, Shorting the Stock that is strongest in the day and coming out with profit confidently and easy may sound to many like trying to read computer up side down. And it is indeed like that for most traders.
What many of them lack is a robust tool set to identify the exact point where to "reverse" or "fade" the Stock and take a reverse trade. Short trade in the case of Strongest Stock.
Superior Profit Day Traders have the tool they need for such situations. A tool set that is easy to use and unambiguous. And they used it beautifully today by Shorting Disney (DIS) as a Day Trade.
As you can see above, Media was the strongest Industry Group in DOW today (10th Aug 2016). And that was mostly due to Disney. Disney was clearly the Strongest Stock in DOW from beginning of day. Later it pulled back a bit. Still ending the day second most strong in Dow Jones Industrial Average.
In between that up move and pull back, our Superior Profit Traders easily took the Short Day Trade and profited from it.
Here is how.
Disney was in news from morning as its earnings came out and the Stock started going up strongly. Superior Profit traders looked up the Stock using easy to use ready made templates.
Below is Disney Daily chart using Clean Template. That clearly shows the potential resistance points in terms of Watermark Level (horizontal pivot levels) as well as Memory Trend Lines - very smart and automatically drawn trend lines that may come from few days back or few years back.
Traders noted that the Memory Resistance was around 99 as marked in the chart above.
They also looked up the Weekly chart - below the Backdrop Template view of Disney using Weekly chart. Backdrop is the usual template used to analyze Weekly charts in CUE System.
Here also, the traders noted that the Resistance Memory was at same level of around 99.
That 99 level was thus established the potential Short point for the Stock.
Now what was left was to use Intraday (5 or 10 Minute) chart using CUE Fine Tune Template to take a Short Day Trade when the opportunity came. As explained below.
Superior Profit Day Traders waited patiently for price to reach the pre-decided resistance level of 99 AND then tilt down - just enough so CUE System could draw the down arrow Stretch Release Bearish signals for him. A signal to take the Short.
With Stop just above Day's High - that Stop was never hit. Exact level of Stop was decided using CUE Protection Signal (not shown here).
The Stock fell from the Short Entry Stretch Release point and never looked back.
Some traders booked profit as the Stock went down and covered much more than the Risk amount.
Some closed the trade as Fine Tune chart showed the Bullish Stretch Release signal (up arrow) signal as marked in the chart.
If partial position was held, that was closed at End of Day. As the trade was initiated as Day Trade our traders don't usually carry it over to next day.
This was an easy Day Trade - Shorting the strongest Stock of the day. All that was needed was to find the Memory Resistance in Daily and Weekly. Patiently wait for price to come there. And let CUE System draw the down arrow Stretch Release signal to tell one to Short Disney with very narrow Stop Loss and much bigger potential profit.
A robust CUE system essential to the trade. As was a good understanding of how to use these simple CUE Charts.
To ensure our traders are always fresh with CUE Charts, Superior Profit conducts regular Weekly Live Class explaining the system to traders all over the world. You are most welcome to join the classes by registering here. That is if you would like to take such confident Short trades (or Long trades) - even if that is against what media is telling us at that time.
Confidently. And profiting from what we see on CUE Charts rather than following media discussions.
That is the Superior Profit Way. Be it for Day Trade. Or Swing Trade. Or Long Term Investment. Many other such trades/investments are shared in Superior Profit Traders Community. You might have a look !
To begin with , Superior Profit Investors using CUE Trading System and broad market awareness don't use inside information for their investment decisions. They have no knowledge beforehand of what is going to happen tomorrow. What they have instead is a robust Trading System which gives uncanny signals based on price moves in the chart. And they have faith in themselves. To make a trading decision themselves. In a systematic and disciplined way.
Not a Penny Stock to be moved easily by 26.9% in a day!
If you were watching, Valeant (VRX) went up today by 26.9% today. And though it declined a lot in last one year (almost 90% even after the massive move today!), it is not a penny stock either. Closing the day on 9th August 2016 at 28.16 USD in US Market. Valeant is actually based in Canada. And its Toronto, Canada listed share (VRX.TO) closed 9th August with a Market Cap of 12.58 Billion Canadian $. A large company indeed. And it would have taken a solid force to move such a large company by that huge percentage in a single day.
All that is good.
Citizen of Main Street.