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Do you get stymied by intraday chop


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Patience, more often than not, will get you with intraday futures trading. It is the single most seemingly unconquerable virtue of all and it has gotten us several times as well. Watching a chart intraday and watching order-flow can be mentally taxing. It is the reason at TradeGuidance we believe in getting price levels calculated ahead of time and let the trades sit through and work itself out versus watching the charts which almost equates to watching grass grow. Trading the indices especially, which have the uncanny ability of cycling and back-filling can cause mental degradation if you're not prepared for it. We present two examples below.

Last night we presented a trend setup for the Emini S&P for barchart readers which had us long from 2814.50 to 2834.50. We got our 20-points from this and hopefully some of you who caught our article in time, reacted and traded this as well like some of our subscribers who smartly elected to sit the day session out today. Today we present a view of that intraday chop for you for both the Emini S&P and Crude Oil. Crude has remained range bound between initial support and resistance all day, trading hopelessly in a channel after trending down nicely over the past month. Such situations are expected and the only way you prepare for them is to sit them out and not try to throw good money into a choppy situation.

ES chop - see how we hold initial resistance for 5 hours & scale lower only to find support

es-chopfest-6619

The short-term trend however is higher and therefore you will see the buyers out pace the sellers in this tug-of-war till we find the right point to sell. For the Emini and into the September contract roll, we remain bullish up until about 2872 and failing to take that out to the upside means we will belong much lower than the last charade which halted at 2728.75.

CL Chop - this just stayed between support and resistance today

cl-chopfest-6619

Our long setup for Crude today suggested we take a long from 51.46 with a profit target above 52. We've traded this long only several times already today to the 51.85 area making it a nicely profitable day despite the sideways environment.

If you like what you are seeing and reading here,come visit us athttps://www.tradeguidance.comand fill out a contact form and tell us what you like trading. We will change what you have been doing with your trading regardless of the market conditions and help you consistently stay in the right side of the markets. Now here is that trade idea which went out as a playbook to our hundreds of subscribers at least a full half-hour before the 6 pm Asian/European open for futures.



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About the author


Murali Sarma, Vice President of Business Integrations Inc., is an internationally known commodities analyst, author, trader and business consultant who has demystified commodity trading and introduced numerous futures trading strategies and indicators to traders - professional, non-professional and the novice trader - throughout the world. Murali began his trading career in the pre-dot-com bubble in 1998, electing to seek instruments to trade which had lesser volatility and offered more predictable analysis. From about 1999 to 2002, Murali traded out of the UK and moving to the US after that and working mostly independently with individual traders while learning from some of the best analysts and traders. While not being formally certified as a commodities trader, Murali preferred to hone in on his analysis and trading skills versus adding academically to his credentials. Murali believes that is isn’t about being right or wrong on your calls, it is about making money!

Murali has helped several traders become successful over the last 10+ years of active futures trading and has a strong following of traders who like to seek out opportunities in the futures markets on a daily basis versus following the old “buy & hold” investing adage. While not being opposed to switching hats and becoming an “investor” every so often with swing trades in the equities markets, Murali prefers to trade what he can see on charts using multiple timeframes and handcrafted indicators suited for all types of markets. Murali excels in trading sideways and choppy markets with a scalping style of being in-out of intraday markets when there is no defined trend, and on most other days prefers trading to his own computed target levels during the intraday timeframe, while following the trend.

In recent months, Murali has started a Twitter based alert service for intraday futures traders who like to trade commodities and index futures, and elected to blog post his daily analysis in commodities like WTI Crude & Gold and index future instruments like YM, NQ, ES & RTY. You may contact him via his email at info@tradeguidance.com

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