Technical Trading The YM Futures Contract

It’s been a while since I put a Dowscalper scalping video together.  Since upgrading to Win 10, I have been finding my screen recording software not working so well.  It puts in blank spots and when rendering the video, it doesn’t do it all.

This video is actually two segments of the same video put together so you may see some screen jumps.

One thing that you hear a lot of is that the lower time frames are noise.  I agree if you don’t know what to look for.  Frankly, these low time frames show you detail that you will not see on the higher time frames.

Both trades and their targets would not have been as obvious if I was looking at 15 minute charts.  The structure would be in place but price structure can be quite large depending on the context.  By zeroing on the details, I can find levels where there are multiple touches of a support/resistance/trend line.

You can see the horizontal resistance line where the trades were targeted to.  If you were to pull up your YM Futures chart and lay the line in the exact location, you will see that later on in the session that price was attracted to that line many times.  Astute traders would have had many more trading opportunities if they trade later into the session.

This video is broken down for Dowscalper members pointing out various technical factors including Fibonacci extension price targets and measured moves.



Bad Read Of Market

The morning starts off with the Dow E-Mini in a range but then breaks off to the downside.

Dowscalper is NOT  a breakout trading method so playing the break is usually not in the cards.  I say usually because sometimes there is a pre-breakout setup that appears that can get you positioned before the breakout.

The breakout was strong and then there is an immediate weakening to the move.  That negated any of the trade setups covered in the course for the immediate time.

Price pulls back (the typical breakout-pullback move) and eventually shows weakness and an eventual trade.

For some reason there was video production issues and the trade is not seen at completion.

I can tell you that it ends a scratch trade and then continues to the target but not with me in the trade.

I extended targets to price structure to the left but bounced just prior to the target.  After taking my stop at scratch, price resumes the push to the downside.

Here is the screen capture of a 5 minute chart so you can see what transpired.

dowscalperI used that target because it was a pivot that was already tested and buyers stepped in.  I expected price to drill through that but instead, it bounced and then resumed.  Trade management was KEY to not taking a loss on this trade.

Lesson is when price is not showing much movement (thrust) and instead moves and then ranges (1 minute chart), do not get greedy.  Take the base hit.




Play The Range

A tricky morning that could have resulted in many failed attempts to get on the long side of the Dow E-Mini.  Price action showed through the many lower shadows that buyers were attempting to drive the market higher and for a time, the market didn’t bite.

As these traders kept trying to get long, stops were building up underneath which made a juicy strike zone. Price drop into the cluster forcing longs to exit except that was not the true play.

Price reversed and drove to the top of the range with those who saw the play setting up, on board.

Two quick profit targets were hit. Since it was a scalping play and not a day trading plan, much was left on the table.

However, the quick profits were made and the rest of the day was yours to enjoy.

Join us at Dowscalper.



Impatient Scalping Dow E-Mini

There are those trading days when you just know that you are not 100% in the game.  It’s not that you have deviated fully from your trading plan (although the pure Dowscalper scalps were picture perfect) but you do a little more discretion that you should.

Take the second trade in the series.

I positioned early on the push to the lower range after seeing bulls get beaten back by the bears.  I thought that we would get a kick lower to take out stop below the range.  Turned out that the kick was nothing and price simply reversed (although profits were made).

After adjusting stops (still inside risk parameters) I realized that I was not scalping at 100%.  Scalping requires quick decisions because price can leave the areas of interest very quickly.  No time for triggers…..just decide.

Although I missed some easy plays after I packed scalping in for the day, you have to listen to your gut that says “You are not functioning at a level needed to scalp”.

While the session ends up the upside, it could have easily resulted in a string of losing trade.



Luck Plays A Role

I think everyone who has ever placed a trade as seen something happen that can only be described as “luck”.

Today, “luck” happened for me and without it, a losing trade would have been the result.

In the trading video below, you will see price extremely close to my stop.  It was VERY difficult not to adjust the stop lower but that opens up a whole different can of worms.

Given the way the market was moving, even giving myself a bigger stop (which would have exceeded risk parameters) may not have made a difference and would have simply resulted in a larger loss.

Missed Trading Opportunity

A mini range had formed prior to my trade and the lower wicks showed buyers kept stepping in every time price was pushed down.  You will see a solid line placed near the opening candle.  Given the wicks that formed and the obvious desire for more upside (including an expanded range), I was looking for a break of the low wicks and price to be bought back up.

That would have been the entry.

And I missed it.

Even though it was obvious and was what I was looking for.

You will see a bearish candle form and the lows taken out. What’s no doubt below the wicks?  Stops.

Who probably started to exit?  Weak longs.

The reversal candle was sharp showing buying strength in the context of:

  • Range low
  • Minor support (wicks) taken out
  • Pre-market up trend

Broken Resistance

Price rockets up and the intention for the entry was pre-breakout but I was slow on the draw and ended up buying the break.  Never a fan of doing that as it could simply be a range expansion or slippage can occur.

What would have made today a little easier was if price had stayed near the top of the range after the opening push.  The generally indicates further upside without the whipsaw we saw at the open.

Dowscalper course members probably recognized the trading opportunities as laid out in the modules.

Enjoy the scalping video!