emini trading strategies for experienced traders
What is emini trend trading?
In emini trading, we often hear "the trend is our friend", but emini markets only trend (go in 1 direction) 20% of the time. The other 80% of the time emini markets are range bound (trading back and forth within a range).
What is breakout trading?
In emini trading, once the price moves above support or below resistance, and confirms - you enter the trade - that is termed a emini breakout trade.
In emini trading, it takes a lot of energy to "break-out", so if the breakout succeeds it may retrace a bit (to gather strength and catch a second wind) at which point most traders get "stopped out" which acts to propel the market in the direction of the breakout.
Breakout trading in emini markets can signal inexperience or recklessness: What do you call breakout traders? Greeters at Walmart
What is macd crossover trading?
In emini trading, MACD is one of the simplest and most effective emini momentum indicators available. MACD turns two trend-following indicators, moving averages, into a momentum oscillator by subtracting the longer moving average from the shorter moving average. As a result, MACD offers the best of both worlds: trend following and momentum. MACD fluctuates above and below the zero line as the moving averages converge, cross and diverge. Emini traders can look for signal line crossovers, centerline crossovers and divergences to generate signals.
What is moving average crossover trading?
In emini trading, a popular use for moving averages is to develop simple trading systems based on moving average crossovers. An emini trading system using two moving averages would give a buy signal when the shorter (faster) moving average advances above the longer (slower) moving average. A sell signal would be given when the shorter moving average crosses below the longer moving average. The speed of the systems and the number of signals generated will depend on the length of the moving averages. Shorter moving average systems will be faster, generate more signals and be nimble for early entry. However, they will also generate more false signals than systems with longer moving averages.
What is stochastics cross trading?
The stochastics indicator is best used in emini trading in a ranging environment; as a result the best results are gained by employing the crossover strategy in the presence of clear support or resistance lines, breakout patterns. On the other hand, the stochastics indicator is very prone to generating many useless crossovers when the price is consolidating, and it must be confirmed by other kinds of preferably non-oscillating indicators or patterns before reliable signals are generated. When the blue line (slower component of the stochastics indicator), crosses over the red line (the faster component) the crossover is bullish, and it is bearish in the opposite situation.
Typical emini trading strategies:
Buy and sell pullbacks to the CF MA1 as confirmed by the CF Cycle and CF DMT
The cfma1 determines the general direction of the market; the cf cycle is a graphic representation of of the manner in which price channels back and forth in any time frame; the dmt shows us direction momentum and trend / this it the final indicator to confirm.
Buy and sell based on simple price action on a 5 minute chart
Price action is a shadow of the decisions traders make in real time, indicators are a shadow of the shadow, learning to read the first shadow (price action) is the first step towards learning to "read" the market....
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