A Professional Approach to Trading Futures

[steven46]

Good Morning from the West Coast USA

This is our first trade on a day when Fed Chairman
Powell is scheduled to speak. As mentioned previously
this is a "layup", that is to say, it is anticipated by professionals
who have seen this before (back in July). Amateurs should
start to get the message. There is money to be made if ONLY
you will take the time to prepare by reviewing charts and having
a system in place to take advantage of the opportunities

Good luck

 

[steven46]

For those interested in improving their performance


Compare this to the last time Fed Chair Powell spoke
on July 10, 2024

We do this daily, because it provides the edge we need
to make money (and it works)

Good luck

 

[steven46]

This will be our final chart for today

The upside profit target is 6,097

 

[steven46]

In the absence of a class we have
time to post this additional
update

Done for the day

Profit target hit

 

[steven46]

Good Morning

The attached chart shows a technique that professionals
call "chipping" (borrowed from golf). It refers to a way of
obtaining a 10 point move on the open based on

1) Context
2) Setup
3) Supporting volume based data including skew

Today was a successful example, and again it was an easy +10/contract

Good Luck

 

[steven46]

Good Morning

Taking a different approach to this session
I am showing the chart without markup text

In this chart we show profit taking, followed
by a retest of the open and (again) the institutions
anticipate favorable news, and this represents
an opportunity to buy "inventory" at a discount,
mark it up (by moving prices higher) then selling
it at "retail"(for a profit obviously)

The basic premise (Wholesale/Retail Model) is what these
institutions rely on to produce significant profit year after
year (because it works)

Because of the timing of economic events today, we have a
limited amount of time to discuss via message or post

Good luck

 

[steven46]

This chart highlights a typical
divergence between price & volume

As seen in the marked up chart
price stages a move higher while
volume slopes downward. In our
experience, volume always leads

 

[steven46]

Periodically I trade Asia. Typically I take advantage of
a Holiday (US "President's Day, which used to be called
Washington's Birthday). American Markets will be closed
on Monday and so the opportunities exist and I will usually
scalp (which for me is +5 pts)

As can be seen in the chart attached below, Asia opened and
the skew was symmetrical. Our process doesn't change, we
took the short entry because price acted weak and a setup
developed at a "sell zone". This (as we have pointed out previously)
is simple.

 

[steven46]

And here is the Long Entry based on the Nikkei
open and Japan's modestly favorable economic news
This one was easy and (seems to us) relatively obvious
The markets responded quickly to hit our profit target.
Nikkei is now transitioning from even to up and will
probably continue

For us, this is pretty much recreational.

Good luck

 

[steven46]

We have an early dinner appt this afternoon
( it is almost 5pm US time) and we are going
to stop until the London Open at Midnight (US
time). We will trade London and get some sleep
at about 3am local time.

The Price Action so far is "TR' (Trading Range) and that
means that price is expected to oscillate between the
Standard Deviation Bands as seen on the charts.
We use a volume based tool to confirm entries
and we assume exits at the opposite band. These
trades are known in the profession as "Round Trips".


Good luck

 

[steven46]

Last Chart

This chart uses 2min candles, session VWAP envelope, Skew and
price action logic. The rest is based on experience and knowledge
of what is likely (trading range behavior) on a Holiday Weekend (in the US)

Notice the entries and exits at the edges of the VWAP bands.
We also use our experience to identify what is known (by commercial
traders) as a "trend origin". These are the tools of the trade. How
a trader uses those tools is a matter of training, talent, and discipline.


Good luck