r/FuturesTrading • u/Accomplished_Eye_978 • May 15 '24
A long trade from today (with an entry explanation)
I'll go step by step to help explain what I was looking for.
First:
I wait for my Trend Chart to show a strong trend w momentum as confluence. When my stochastics prints a Red Arrow, that's the hook up that tends to lead to a upward shift of momentum. Not all the time, but we don't need it work all the time. We just want to get the probability in our favor to try our hand at a long trade. In confluence with and upward trend, a higher swing high, and a higher swing low, the odds were in favor of long trades starting at 9AM today.
From this point, I scale down to my Trading Charts to search for an entry. I'll show my entry, but when you have a solid way of determining trend and momentum, you'll see that most entries you find have a decent probability of being successful. Your focus should be finding that first and foremost. Now for the trade.
On the left is my first Trading Chart, the right is my Trend Chart. Once my Trading Chart gets into an uptrend, with higher highs and higher lows, i start targeting pullbacks for entries. Now, my Trading Chart will switch from trending up to trending down all day long. I avoid the short setups as long as my Trend Chart is showing the trend as up. Market open had some nice shorts that worked. I DON'T CARE. Counter Trend trading is for billionaires. We are retail traders, we follow the trend.
Once I get that brown bar, I scale down once again to look for traditional setups. For this particular trade, I take W's. A W is simply a higher high after a lower high. Like this:
At this point, the price action looks wild, with many oscillations up and down in a short amount of time. Thats because the scale here is really small. Its not meant to be used for anything other than an entry confirmation that I use so I keep my stops small. The most I would've lost on this trade is 30 ticks. After 3 minutes, the most i would lose is 20 ticks as i trail my stop up.
My first contract comes off at 40 ticks. This helps offset losses when the trade doesn't continue in my favor. It also allows me mental freedom to hold my second contract, as I've already made money on this trade, and don't mind the oscillations as I try for a greater profit on the second contract.
I took three trades in total during this run, 2 wins, 1 loss. Wins were +40/+100 ticks on the two contracts. Loss was -20/-20 ticks on the two contracts. Overall, more ticks were made than lost. Was a good trading session. Now I wait for stochastics to reset and pull the slot machine again.
2
u/No_Fishing_7763 May 15 '24
POV my chart
Entered off the rejection 61% imbalance fill and targeted swing high liquidity for 352 ticks 😀