Pre-Open market analysis
The traded in a tight trading range around the 3200 Big Round Number for the 3rd day yesterday. The chart is in Breakout Mode.
However, until there is a breakout, day traders will continue to look for reversals. Many of the best setups are with limit orders, which are only for professional traders.
$3000 Robinhood Investment(The Strategy No One Talks About)
It is too easy to make costly mistakes with limit orders. Traders starting out should wait for stop order setups.
The bulls are trying to get the year and the decade to close on the high after both opened near their lows. Since the bull trend has been strong for several months, the Emini will probably have only minor pullbacks in the 2 remaining weeks of the decade.
Overnight Emini Globex Trading
The Emini is down 3 points in the Globex session.
Traders are still deciding whether the bull trend will resume or if there will be a 1 – 3 day pullback.
Until there is a clear breakout of the 3 day-tight trading range, day traders will be quick to take profits. They will always look for a 4 point trade beginning in the 1st hour or two. After that, if there is a lot of trading range price action, like over the past 3 days, they will switch to scalping for 1 – 2 points.
Because the daily chart is at resistance, there is an increased chance of a trend up or down.
Day traders want to see at least 2 consecutive big trend bars, and preferably more, and a breakout of the range before they will conclude that a trend is underway.
Here are several reasonable stop entry setups from yesterday.
I show each buy entry with a green rectangle and each sell entry with a red rectangle. I rarely also show limit order entries and entries on the close of bars. Buyers of the Brooks Trading Course and Encyclopedia of Chart Patterns have access to a much more detailed explanation of the swing trades for each day.
My goal with these charts is to present an Always In perspective. If a trader was trying to be Always In or nearly Always In a position all day, and he was not currently in the market, these entries would be logical times for him to enter.
Emini 5 Min Chart