Observe & Trade

The market is in the red today partly because of the news about the iPad creator.

Showing the 5-min. chart from the three leading core markets.

The Dow (YM) was not that smooth to trade today for its bubbly.

TF, NQ and the ES were on a smooth ride to the bottom.

Trading any of them in the open can make you a nice paycheck for the day.

Observe & Trade

A mixed reaction from the core index market today.

DIA (YM) made a nice upward movement in the open and formed a bull flag at 10:00 am.

QQQQ (NQ) open below the previous close but made a triangle formed like for a bullish signal.

SPY (ES) was a little bit choppy and was not a good index to trade today.

Russell 2000 made an ugly move early but recovered late in the close.

Based from observation, there are tradeable pattern today but with cautious play.

Trading ideas

Showing 5-min. charts from the three core market indexes.

Not much noise to trade last Friday except in the first hour.

It's a very smooth upward movement!

Trading ideas

Showing this 10-min. chart from Russell 2000 (TF).

It vertically leap in the open then drops a little bit in the R1 (red bar).

That is where the best entry for a long trade.

TF moves $100.00 per point, gaining 4 points gives you a profit of $400.00 for a contract.

But if you are a small retail trader like this one, trading TF especially during high volatility makes your nerve wracking because of the big (high) increments in value.

That's why preferably NQ and the YM is the most appropriate to trade, at least the pressure is not that much from trader's psychology.

Going back to the chart, reflecting them on the multiple time frame can show the right entry and exit.

Referring to 1-min. frame is the best way to watch its movement.

Also, the almost 24 hour chart in the e-minis can give you an edge in identifying the direction or its movement.

Trading setups for January 13

Trading setups for January 13

Observe & Trade

Showing the 5-min. chart from YM (DIA) and NQ (QQQQ) that was just traded.

The market gap up and bought for a long trade when it drops after the open.

Amateur open the market, pros take the opportunity!

Took 7.25 points from NQ ($145.00) and 25 points from YM ($125.00).

Not bad for less than an hour of watching.

Trading ideas

Just to show this 3-min. chart from TF wherein the "h" pattern I pointed out in my previous post about the short trade.

Notice the previous close was hit then it bounced.

That was the sign to exit the short trade.

Though it can also short from the R1 but the most probable to confirm was at the "arc" on the "h" pattern.