Short-Term Horizon, Gold, Commodities, Oil & Gas
Contributor Since 2009
The S&P500 Emini Futures spent both the Globex and day session trading in and around our Weekly Trading Zones: 1315/1316 on the upside and 1309/1310 on the downside. Price did spike to 1319.25 pre-market and spiked as low as 1307 after the U.S. open. The following is an hourly Globex chart which shows that even though we traded inside a tight range the entire session, opportunities were available for both the Bull and Bear.
S&P 500 Emini Futures Hourly Chart 01/27/12
Fixed Support and Resistance
There are two types of Support and Resistance you need to be concerned with when trading Emini Futures. The first one we'll talk about is Fixed S/R which for CRN Partners are our Weekly Trading Zones. These Zones are issued exclusively to CFRN Partners prior to the market opening every Monday morning. They are considered "Fixed Support and Resistance" because they do not change for the entire week. Here we are 5 days later (Friday) and the Zone remains the same.
Many of our Partners base their entire Emini Trading Strategy around the Weekly Trading Zones. In the chart above it is easy to see that selling 1315/1316 and buying 1309/1310 during today's session gave repeated opportunities for profitable trades. While you may not be entirely comfortable just trading against a fixed support or resistance area, it does create an obvious backdrop against which you can utilize our additional indicators for "to the tick" confirmation when putting on and taking off trades at these key areas. The Weekly Trading Zones not only serve as fixed areas of support and resistance but they also serve as price magnets. Over and over you will see price drawn to the next Zone. Once a Zone is reached one of two things will happen:
On our web site you will find over 700 Emini Charts from the past 18 months that show our Fixed Support and Resistance Levels in action. I encourage you to spend time studying the charts to help you become more familiar with how price reacts when it hits a Weekly Trading Zone. Also be sure to view the chart from last night's blog post which shows the Weekly Trading Zones for the entire past week.Dynamic Support and Resistance
You also want to be aware of Dynamic Support and Resistance when trading Emini Futures. Dynamic S/R is a different animal entirely. Unlike its cousin Fixed S/R, Dynamic S/R is a moving target. We use a proprietary indicator to chart these levels as they develop live, in real time. Instead of a chart, I am going to share with you a video that explains exactly what our CF_SR Indicator does. youtu.be/fr8yrS61BWE
The CF_SR Indicator may just be the best friend an Emini Trader ever had. We all have our favorite method of determining fixed support and resistance (Weekly Trading Zones) but once price trades between your fixed area and stalls... then what? The heat of the battle is the last place you want to start making emotional decisions. Don't Do It! Let the CFRN Dynamic Support & Resistance do your thinking for you. And the best part? It has nothing to do with emotions and everything to do with math. Stay in? Get out? Those are great questions and the good news is we have the answer - CF_SR a dynamic component of the CFRN Emini Indicator Suite that works well across all market and time frames
Is it foolproof? No. Unless... you learn this one sneaky little trick. In fact, one of my personal highest probability trade set-ups is based on the exact times when this indicator completely and utterly fails. How can that be? If you really have an interest in learning How To Use Support and Resistance to Improve Your Emini Futures Trading - I'll explain everything here.
Before I close out tonights blog post I want to show you a few more Emini Charts from today's session. I pointed them out in the Live Emini Trading Room this morning and again during the Live Daily Broadcast. These charts show what I call the Naked Trade and on Twitter we are known as @CFRN/TradingNaked so I highly encourage you to follow us. At the bottom of this post you will have an opportunity to click and follow.
The last thing I want you to take away from the following charts is - Easy.
We never attempt to convince you that anything we do is easy. What we teach is - Simple!
Below is every long set-up (Naked) after the opening bell today on Wall Street.
What I have just shown you is yet a third type of Support and Resistance made possible by one of our CFRN Indicators. These trades are all from today. Go verify the time and price on your own chart. I don't want you to believe me. I want you to believe your own eyes.
Magic or Math?
CFRN Partners know the answer. They know how exactly how to take this trade. If you can send an email, I can teach you this S&P500 Emini Futures Trade in 1 Week.
Please post your questions and comments below in the comment section.
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Emini Podcast for Friday 01/27/12