The E-Mini Pit
If you currently trade, or are interested in learning to trade, the CME E-Minis, this thread is for you. As opposed to just another market direction discussion thread, our focus here will be on providing a traders resource of specific information on the E-Minis, including discussions of brokers, trading platforms, order types, trading methodologies, money management techniques, futures-specific tax issues, etc. In addition, please post your trades, but please include your reasoning, so we can all learn. Links to charts, articles, seminars, and other message boards dealing with E-Minis or futures trading are encouraged. Also, please check this original post from time to time to see any new links we post here and to check out The Post of the Day, which will be selected from daily contributions to the board.
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This is a moderated thread, so please respect these few posting guidelines:
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POST OF THE DAY:
Message #1317 from the-phoenix at Feb 21, 2002 10:19 PM
Some more 1.272 Expansions on the NQ today:
As you may know, I am fond of using 1.272 expansions as price targets on the Nasdaq. Today, I spotted three of them , each in a different timeframe, that gave at least small pivots in price when they were hit. Check this chart:
webdesigns1.com
The smallest pattern, labeled 1-2-3, marked the morning lows precisely. After the initial low was made at around 9:50AM, a bounce back up to near the morning highs failed right at the 20sma5. The ensuing selloff took out the previous low and made a perfect 1.272 expansion at 1378.5. From there, the market rallied into the highs of the day.
The next pattern, labeled abc, measures a 1.272 expansion of this run to the highs and its subsequent breakdown. This measured to 1371. Precisely at 1371, there was a pause for two bars and a bounce of 4-5 points. This was the only pause in what was an otherwise relentless selloff once the morning lows were broken. Due to the ferocity of this intraday trend, the 1.272 had a very weak influence in stemming the tide, but is noticeable nonetheless.
The largest pattern , labeled ABC, marks the 1.272 expansion from yesterday's low to high, carried over to today's close. This expansion measured to 1351 (which also corresponded with the 2.00 expansion of the ab rally.) Notice that the selloff late in the day halted abruptly at this level and rallied about 12 points, before revisiting this area at 4PM, effectively marking the low of the day (discounting some slop over in the 4:00-4:15 light volume period, which has since been negated in the night session.)
I used each of these 1.272 expansions as profit targets for shorts today, getting out about 2 points above them each of the three times. While this clearly left money on the table, especially with the second, abc pattern, you can see that this was an effective method for covering near the lows in the other two cases.
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Key Links for E-Mini Traders:
E-Mini Contract Specifications:
cme.com
E-Mini FAQ: cme.com
Register for Free E-Mini Real-Time Quotes:
realtime.barchart.com
E-Mini Charts (Delayed): futuresource.com
Information on Futures Brokers: elitetrader.com
Futures Trading Free Seminars: zapfutures.com
NFA Home Page: nfa.futures.org
Louis Lambrecht's Pivot Lines Spreadsheet: lvlamb.itgo.com
Tax Site for Investors and Traders: board.fairmark.com
CME 2002 Holiday Calendar: cme.com |
