Learn to Trade Emini Futures - Trend Trading The Emini
(QQQQ)(DIA)(SPY)(GLD)(SLV)
The S&P 500 Emini Futures continued the upward trend putting in a higher high in an attempt to reach the 1354/1355 Weekly Trading Zone ahead of Greece announcing their resolution. There will not be a Podcast created on Thursday, we will return to our normal Daily Live Emini Broadcast on Friday.
The Trend Is Your Friend!
Certainly a well worn trading adage, but what does it really mean and can we use it to improve our Emini Day Trading?
The definition of a Trend is simple enough: The general direction of a market. Trends can vary in length from short, to long term. If you can identify a trend, it can be highly profitable, because you will be able to trade in that direction. Hence the familiar saying - "The trend is your friend until it ends".
While defining a trend may be simple, identifying one can be a bit trickier. If we take a look at a chart of the S&P 500 since its inception, its quite obvious at this point that the trend has been __________?
If you guessed Up, you are correct. Spotting the trend on a long term historical chart is easy enough. Certainly there have been some rough patches and major draw downs but nonetheless, the trend is up. For those of us who daytrade the Emini Futures, identifying the trend intra-day can be a bit more challenging. Over the next few days we will talk about tools we can use to be on the "right side" of our emini trades.
An old standard of course is the "trend line" which requires nothing more than a ruler and a #2 pencil. The good news is your charting package comes with an unlimited supply of them and they are absolutely free. Don't worry about getting them perfect, just draw them, lots of them, and over time the geometry of the market will begin to reveal itself in some very unusual and quite often surprising ways.
One of the issues with trends and trend lines when day trading Emini Futures is that often by the time you can visually identify the trend, it's time to change. This presents quite a dilemma. Wouldn't it be nice to have a tool in your Emini Toolbox that did more than show you the trend, but also alerted you when the trend just might be ready to change? Could that potentially improve your trading?
CF_TC Trend Change Indicator
CFRN Partners have access to a tool that does exactly that. From 1 minute to quarterly charts and every variation in between, the CF_TC Trend Change Indicator is a modern day mathematical marvel.
The CF_TC Trend Change Indicator immediately alerts you of a potential change in the underlying trend of any Emini Futures Contract. This indicator also works well with equities, metals, crude, grains and of course the ES, YM, TF, NQ, and even the 6E Euro. This indicator can be traded as a stand alone system but provides optimum guidance and results when used in conjunction with the full CFRN Indicator Suite. Whether you prefer trading from a daily chart or a 1 minute chart, when the trend changes - the CF_TC indicator will make sure you're the first to know.
Lets review some charts to get a feel for how it looks -
Dow Emini Futures 02/08/12
Dow Emini Futures 02/08/12
They say a picture is worth a thousand words and yet you're speechless. I suppose you may be curious about the entry candle. Drop by our Live Emini Trading Room and I'll show you how it works.
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