3 Minute TF Chart

July 31st, 2010

Hi Traders,

Here is a quick chart on Fridays gap down. We were actually gapping down to the bigger time frame support on Friday. This is the value in knowing if we are at bigger support or if the market has further to fall. Trading a gap with just looking at the gap is a very tricky and emotional thing to do. Trying to play gaps consistently by just watching the gap is almost impossible unless you are scalping for 2-3 ticks which we do not do.

Notice how the TF gapped down and then we had blue bars. This tells us that the direction before the blue bars is most likely over. In looking at the chart would you continue to short the gap if you had the blue bars on your chart?

From the blue bar low the TF rallied over 17 points. Our scalper chart gave us 2 clear signals to get in long inside of this rally. From the 655 high the TF made a perfect correction patten that was also very clear on our scalper chart then there was a aggressive buy at the 648 level.

On a Friday if you took 5-6 points out of the scalper in the morning there would really be no reason to trade the long signal at the end of the day even though it was good for 6 point of potential profits.

We have changed the way the Kill Zone indicator looks. Now you can have the choice to make the bars a different color when the move is starting and when it is over. Like on this chart the blue is when the move is over and the yellow is when the contraction is going to turn into a bigger move or a breakout type trade. In this example the yellow bars came in right in the middle of the correction so we would not jump on with any size at the yellow bars.

It is important to know that our indicators are specifically designed for our trading approach adn the patterns we trade. We are not just buying green and selling red. The market has too many variables to be doing that kind of simple trading approach.

If you would like to see a specific chart contact us at trade@eminischool.com and one of our traders will get back to you.

Happy Trading,

www.eMiniSchool.com

Is one losing day taking away three days worth of profits?

July 31st, 2010

This is something that most every trader struggles with and there are a few things to consider if you are having this problem. In this article we will look at a few things that could be hindering your long term approach. This article is an overview of multiple articles but very important nevertheless.

Usually this happens with small time frame scalpers that do not have a clear reason to buy and sell. This is more of the gambling type of mindset and must be acknowledged as a problem before you can accept any ideas for a solution.

Most of the time the problem lies with letting the winners actually win for you. If you are risking 1 point for example to make 2 this seems like a good risk/ reward but unless you let the trade actually make the 2 points your risk/reward profile can change very fast meaning; if you risk 1 to make 2 but then always take profits with 1 point your risk/ reward profile is now 1:1 not 1:2 and this is a big difference over time.

We know the feeling of having profits and wanting to take them especially if you are not used to having profits. It all comes down to confidence in yourself and your true abilities. Everything part of trading comes down to confidence when you think about it. But you do not want to be overly confident either, there is a fine line you must ride with your emotions to stay the course for the long term.

Trading is a weird thing. You can take the calmest person and he/she can turn into a maniac when it comes to trading. On the other side of that there are people that are very aggressive with other things in life but with the markets they are very conservative. The risk associated with trading is a direct result of the profits that can be made in the markets. Some people do not like risk and some thrive on it.

No matter what style, time frame or trading goal you may have you are assuming risk. There is no way around that fact but there are ways to control the risk. Our job as traders is to control the risk and make sense out of ciaos. The only way to do this is to program our minds to be a machine, a trading machine!

Think of it this way, if you were to make an automated trading system you would sit and the computer and input rules into the strategy and then the strategy would follow the rules. So what we must do is program our minds to make the best decision in real time. The best traders just execute the trades based on their rules and strategy. To get the best strategy you need education to know what rules to input into your brain.

Automated programs have no emotion they just see X’s and O’s and True and False. But we are human and we have emotions no matter how long you have been trading. Your emotions will never go away but you can learn how to accept them so you can deal with them. Trying to squeeze in a trading approach that tries to avoid the risk/emotions will not fix the problem. This is the same as trying to skip right to the result without knowing how to solve the equation. It might work sometimes, but not for the long term.

Try to accept the risk and hold your trades to a defined target and have a way to manage your trades. For each trade you take you have to deal with the emotional side of the trade. This passes 10 – 20 seconds after you enter the trade. So instead of getting in and out then having to re-enter and go through the emotional risk it is better to just hold the first trade.

This brings us to the next step which is having odds of hitting your target for the trade. You must have a good trade setup that will allow you to have the opportunity to make the profits meaning; before you can get to the step of holding the trade you must first have the knowledge to have a winning edge. Since you are trying to program your mind to only take the good setups you must first learn what a good setup is. You see how there are steps to the process? It is not just jumping to a step randomly in the process.

Conclusion:

The only way to get your trading to the point where 1 trade doesn’t wipe out multiple days of profit is to let the winners run and not over trade. Have a realistic stop for the profit target. Could the stops on your trades actually be too tight? This might be the case especially using a very small time frame.

Keep a journal of your trades and write down how much the stop was and if you got stopped or you didn’t. Then write down how much heat you would have taken before it went in your direction. After a few weeks you can then find something that you might not have found. Maybe your stops are too tight maybe your direction was right but the timing was off. There are many things to consider but until you actually look at it you will never know.

If you need a bigger stop try trading the NQ’s because the point value is smaller so you can give the trade more room until you fine tune your entry. Try to build good repeatable habits and get rid of the bad. To do this you might have to do work and actually take time to look at it realistically.

Keep your risk/ reward in check and hold your trades to the target. Just think to yourself if you don’t think the target will be hit right when you enter why are you entering the trade?

The timing aspect of trading is hard and that is why we have made our indicators go green in the buy zone. This slows the market down and we are waiting for a color change NOT trying to predict it!

Happy Trading,

www.eMiniSchool.com

Charts from the last few days

July 29th , 2010

Here is a quick video going over the last few days. We have made a new version of the Kill Zone and now you can change the starting and ending colors of the moves. Yellow means big move starting and blue means big move ending.

Happy Trading,

www.eMiniSchool.com

Is it taking you all day to hit your trading goal?

7/29/2010

We have talked about the two point goal per day in the last article. Now let’s look at that in a new way. If you could start trading right now with no prior experience with the thought that you are going to make tow points a day everyday then stop trading. This is your goal but why is it taking you all day to get it?

There are many reasons we think having a small goal for the day is bad for your trading. It could even be changing you as a trader for the negative. There are many reasons why this is a bad idea in our opinion and let’s take the time to look at a few.

First off having a small two point a day goal will force your thought process into small segments. Instead of learning how the market really works your focus is just on making the goal. You will try anything to make the goal no matter if it is counter trend and very high risk it doesn’t matter. Remember when we were talking about having a narrow view on the markets with small time frames? Now we are talking about having a narrow view as your thought process.

Having goals with your trading is good in some ways and very bad in other ways. If it is taking you all day to make two points and 10 round turns something wrong with your trading. But instead of digging deep and finding the solution to what is wrong most people will not change. Humans do not like to change for the most part, but with trading you almost have to have an alter ego. Step outside your normal self and you have to become two people, two people that are having a conversation at all times when you are looking at the charts.

Within your mind in real time one person is asking the questions and the other is answering them. This is what most people are missing because they do not know the questions to ask themselves. It is a constant checking and re-checking to make sure it is right. Then once you have the outlook you then break it down further and apply the tools to make the thought a reality.

What if you have a two point goal for the day and you hit it? Now the devil inside you will say “you should really take another trade so we can pay for all the commissions for the day”! Oh , no , now what? Are you going to go outside your trading plan to pay for commission? What if you do take another trade and it is a loser? OH, NO now we have a situation on our hands, and we need to make back that loss really quick and act like it never happened.

The point is there are too many things that can come up when you limit yourself and you start to build a negative pattern within your mind. The pattern is that “this time I will do something because it is justified”. But we are human so if we get away with it once we will try to get away with it again and again. You are your own worst enemy when it comes to trading.

If you learn the foundation and follow the nightly video course and use the tools we have you will be a happier trader at the end of the day if you followed all the rules rather than just hitting your target. If you follow the rules hitting your daily target turns into something that just happens within the day, it is not your absolute goal.

So what is a good goal to have?

The best goal to have is to stick to the signals and trade with the trend and the outlook. Our job is to avoid the counter trend signals and once in a trade stick to the rules in managing that trade. The goal is to risk less than our profit target. Then taking it one step further you must learn to hold to the profit target. The only way to do this is to have confidence. And the only way to build confidence is education and seeing it yourself over a period of time.

Our goal is to be the best trader we can be and know what type of market condition we are in and then trade accordingly to that condition meaning; if the bigger time frame is making a base and it is contracting do not try to go for a homerun on the smaller charts. Trade the reality of the market not your gut feeling.

Our goal is to follow the rules and do not trade against the color of our indicators and bars. Our job is to wait for the trade to set up and then enter the trade. Once in the trade follow the rules and do not exit until we have a reason to exit.

Happy Trading,

www.eMiniSchool.com

Is Trading Easy?

Where you told that trading is easy?

It makes us really mad when we get emails that say trading is easy and that anyone can do it. Yes, we are on the same email lists as you are. There is always someone out there that will tell a group of people that trading is easy and it will only cost you $199 to master the markets.

We hate to be the one to tell you but trading is not easy and anyone who says any different is lying!

It takes years and years to really understand the markets. The people that are telling everyone that is it easy are really robbing you of a great opportunity, why? Because they sell you on the fact it is so easy that you buy into it because you want it to be true. You open a small account in hopes to make monthly money because it is so easy. As time goes on you find out it is not easy and you lose the money and even worse now you think it is impossible and you stop your trading education because if you can’t do it with your $199 e-book no one can.

Trading forums are full of these type of people who did very little to learn and failed and now they want other people to join their pity party. We get it, and it is a shame because that person now has a very negative thought process about the markets. Most people give up in the stage that they actually need to push through harder to learn why they are not succeeding.

*On average in our opinion people start trading real money before they even come close to having their trading foundation.

It seems like people much rather be told what they want to hear and it not work out then be told something that makes them uncomfortable. This is how people’s minds are programmed, we are human. That is why other companies make sales pitches that seem so right, just for you:

“Make money only trading the first 30 minutes, because we know you are busy” (Wow this is perfect because I want to trade before I go to work)

“Become rich only making two points a day!” (Only two points a day that seems doable because I don’t want to get greedy)

You get the picture; the point is there is no short cut with trading. Yes, there are ways to cut down the learning process meaning; have what works and master that instead of spending your time constantly searching for a new answer.

Learning how to trade takes time. Everyone has the time it is just if you personally want to spend the time to learn to trade or do something else. Trading is not a last ditch effort to try and make some money today to pay a bill tomorrow. If that is the case you are better off using the money for other things in life. The stress that comes along with small accounts to pay your house payments is too great for the average person.

Trading is not a “work at home” business that anyone can do. Again, we do think that everyone is capable of learning but trading is not something you read a book on and then pass the exam. You must accept trading for what it truly is and that is buying and selling risk. If you are not the type to take risk then trading might not be for you and that is ok.

There is a learning process that must be taken with the markets. It is you understanding the questions to ask yourself in real time not just searching for the result. We know that most people are just searching for the result and there are plenty of people out there that will give it to you but in the long run you still do not know the questions and you will get stuck without a way to logically find the solution on your own.

Can you make a living making two-three points a day? Yes, if you trade enough contracts to make 3 points mean something to you. But the truth is, it is best to add contracts when you are a profitable trader not just start out trading 10 contracts. And if you really started with 1 contract would you be able to build to 10 contracts? If the answer is no then you should not start off trading 10 contracts.

It is you learning how to get 1 contract to 10. Because if you get to 10 contracts you are making money and your confidence will be high enough to trade 10 contracts without the fear of losing. It is all great when we look at the fact 10 contracts at 3 points is $1500 worth of profits with the ES. But on the other side of the equation a 3 point lose, you are losing $1500!

We have found that our members do the best if they watch the foundation videos over and over then we do 1 on 1 session with each member. This way we are talking specifically about the same thing. This is the foundation to all things to come. From the there you then break it down with live trading and over time parts of the core start to connect. At this point is where the light goes off that you can get it, and you see that the market repeats itself over and over again. Then we break it down to make money with everything you have learned.

It is a process that is worth doing. Because once you learn it no one can take it away from you, it is your forever. As time goes on you start building confidence in yourself and that is when you start adding more contracts to get to your goals.

Final Note:

Because we know that trading takes time this is why we do not charge our members for our ongoing support. We give all our members a nightly video going over current day’s action plus our outlook for the following day and why. The ongoing education is very important to your long term success. Every one of our competitors will charge $200-300 a month for the ongoing support. We do not because with trading you must get everything upfront as your foundation then build from that foundation. Once you are part of eMiniSchool you are part of everything we do.

Find a great foundation and spend your time building that foundation and stop searching for easy result because they don’t exist in the markets!

Happy Trading,

www.eMiniSchool.com

Confirm with a bigger chart

Are you watching a 1 minute chart as you biggest time frame?

Really this question is, are you watching a 1, 2 or 3 minute chart as your bigger time frame? The reason we want to take a minute to talk about these questions is because we see and talk to many traders and we are shocked at the amount of traders that are relying on very small timeframes as their bigger direction chart.

One minute chart, 300 Tick, 3 Range, it is all the same.

In this article we want to open your eyes to something that you might be missing or something that might be causing you to lose money and confidence. The smaller charts can tell you valuable things but it should not be your overall outlook chart. A 1, 2, or 3 minute time frame is actually too small to gain the bigger direction and worse yet we see so many traders’ charts and they are only looking at today’s action on a small chart. This is making the already small view even smaller!

We get it, the smaller the time frame the smaller the risk but in looking at only small time frames your profit potential is also limited and small charts will give you more false signals. It is you knowing when to skip a trade because it has low odds of success. So how can you get high odds only looking at a small time frame? YOU CAN’T!

So what you might be doing is actually adding in more confusion to your trading. The goal is to take away the confusion not add more to the situation right? Right!

People think we are crazy when we say we look at the 60 minute chart for day-trading. They say “you aren’t trading the 60 minute so why look at it”? The truth is we are trading all the charts but we are just using the 3 minute as our entry method. There is only one price for the ES at each moment in time so we are trading all charts. Why are looking at the 60, 10 and 3 minute charts? Each chart gives us the bigger, medium and short term view. Even though the charts may look different they are all the same thing.

Learning how to read patterns is going to be very crucial to your trading success. Do not rely on software to recognize patterns for you we have never found any that are as good as you learning them and drawing them in yourself, why? Because all the pattern software changes the pattern in real time and this will add confusion to your trading.

Knowing that patterns are very important we then break it down on each time frame because the market moves in waves and waves within waves. So without knowing where we are at in the bigger pattern it is very hard to have confidence you are trading in the right direction. Taking it one step further you must also know when the move is most likely coming to an end so you are not going long right at the upper targets or the bigger sell zone.

Would you drive down the freeway at 100 mph starting at a dot on your windshield? No, because this would be very dangerous. Even though you would not do this driving down the freeway you might be doing it with your trading. It is called tunnel vision and you can get hypnotized with every little move and the market will suck you in right in the middle of a bigger correction.

Where is the money made? The money is made when the market expands called an impulse. Within that impulse there will be minor retraces that are 100% counter trend to the bigger trend. But if you are just looking at the small time frame guess what? Those minor corrections look like they are tradable but in reality they are not because they are minor and they are corrections.

If you do not know how to spot the expansions chances are you are trading the correction and since corrections are choppy and hard to trade you are actually trading the hardest spot on the chart. It is the feeling of watching the market go up 10 points and you were not long so now we are at the top and you are stuck. You didn’t catch it long so the only thing to do is try to short against the expansion. We know how it is, we have been there done that.

The difference is not trying to find something to make it easier to trade the correction, but learning how to catch the expansion!

Conclusion:

Try looking at higher time frames to confirm the direction and start learning the discipline of only trading in that direction. You will be rewarded for it in the long run with profits now and confidence for the rest of your trading career.

7/25/2010 Scalping

7/25/2010

Are you trying to scalp your way to trading success?

Allot of traders skip right to scalping because the risk per trade is smaller on a scalp trade. The problem with skipping right to the scalping without knowing how to read the overall market is the fact that most of your scalping trades will be 100% counter trend. Why is this? It is because the majority of new traders that are trying to scalp is that they wait for something to happen then try to go against it. In doing this you are trying to pick to the top and bottom of the markets on a very small scale.

It seems like scalping would be easier because you only have to be right for a very small period of time, maybe 20 seconds to one minute. But the truth is with scalping you are breaking it down so small that if you timing is off by 10 seconds you will lose even if the price ultimately goes in your direction. There is always good and bad with every method it is just you knowing the pros and cons then make a plan around the odds.

When we talk about scalping we are talking about trading for 1 to 3 points on the NQ, ES or TF. We are not talking about scalping for ticks. If you are trying to trade electronically for 1 or 2 ticks we believe that this is very hard to do consistently and it promotes very bad long term trading habits.

We have made a scalper method and an indicator specifically for scalping but if we are going to scalp a trade we go into that trade using the scalping rules and mindset. The worse thing anyone can do is enter a trade with one intention and then mid-trade change those intentions. With scalping you must have a clear objective and your job is to stick with that mindset until the trade is complete and no shoulda, woulda, coulda thoughts after the trade is over. Scalping is just that you are scalping a little out of the middle of the move. Notice how I said the middle of the move NOT the top or bottom!

We believe that scalping the right way is to know how to read the bigger trend and pattern and only trade the scalper charts in the overall direction. The problem is that when you are looking at scalper timeframes there will be counter trend signals and it is your job as a professional trader to know those trades are counter trend with low odds and skip them. The best trades with scalping and the low odd trades that you skip.

Is your daily goal overriding logic? Just because you want to make a certain amount of points everyday does not mean the market will give you the opportunity to make those points. Again, it is your job to know the bigger pattern and if that pattern is basing out (contracting) then you must acknowledge that the opportunities might be limited and it is important to not force something that is not there.

Do you know the bigger pattern? Or are you just looking at the last 40 bars on a small time frame trying to figure out which high or low is a breakout?

Know that profit potential is limited with scalping so we must have realistic expectations on what the trade could produce.

How we scalp:

We break down each market into a different view. The TF, ES and NQ cannot be broken down the same they need to be broken down specifically for that symbol because they all trade differently with different ranges.

Simple Scalping Rules:

Only take a scalper in the direction of the 3 and 10 minute charts. If the 3 minute is green and the 10 minute is red there is confusion at that time and we do not want to trade confusion. We use the Kill Zone indicator for the 3 and 10 minute charts. In doing this we force ourselves to only trade with the strength of the market. Then we break down each symbol into our specific scalper chart and we have different entries for each symbol because they all trade differently.

If you are a breakout scalp trader know that the ES is probably the worst market for you. The ES is very hedged and everyone is trading it meaning; there are more opinions at every level, so it is a struggle for the ES to actually make a move on a scalping basis.

Remember that scalping is a very quick process so you want to trade the thinner volatile symbols like the NQ and TF. We want the whippier action so we can profit on minor price spikes. We know that everyone was taught to only look at the ES but try looking at the NQ and TF because the points are easier to get and the movement is faster.

People say that the NQ and TF are not liquid which not the case. Sure they might have less volume that the ES but this will work in your favor. Someone once told me that the NQ didn’t have enough volume for him to trade. Then he told me he was trading only 3 lots!

Think about that and how people are programmed to think something before they even try it for themselves. The point is sometimes with trading it is best to make your own conclusion because it is you trading and your money. Think about it do you really care if you buy a ES or a NQ? All we are trading is price it does not matter what the symbol represents.

Learn how to get the bigger direction then only scalp in that direction. With trading everyone is looking for a confirmation on the smaller chart but you might be looking at it wrong. With scalping you need the confirmation to be on the bigger charts because that is your confirmation. The point is having a fast indicator on the smallest chart will do you more harm than good.

If you do have indicators are on your fast chart try doubling or tripling the settings to make them bigger. We want to slow down the scalper chart and wait for trades not force or chase them. That is when trading turns into overtrading very easily.

Why do we need to know the bigger patterns and how to read them? So we know when to stop scalping long or short. Would you enter a long scalp right at a bigger resistance sell zone? You might say no, but without knowing that we are at that level how can you actually use the question and answer in real time?

Confirm with the Kill Zone indicator then use the Turbo Scalper indicator on the smaller charts for the best results!

Happy Trading,

www.eMiniSchool.com

TF 626.00! Nice longs today

7/20/2010

From last nights update we had the upper target on the TF at 627-629 area. Today the ES and NQ gapped down and broke the last low but the TF did not. This is what we were looking for to confirm that the low would hold and that we were going to get a move to the upside. In the video we go over the charts and the signals.

The NQ trade was good for 21 points!

Happy Trading.

www.eMiniSchool.com

July 19th 2010 TF

7/19/2010

Here are two charts.

The 60 minute chart on top shows that we are forming a wedge and we are about to make a big move out of it. We still could go sideways for a few days but the VIX is setting up for a big move and the TF is forming a nice wedge so right now is not the time to get lazy with any positions.

With prior post on the blog we had the 600 level which was actually 605 to our members as a important low. From there we had the 674 higher target as our projected high of the next leg. The TF went a few points beyond that level but the general area was a massive sell zone. From there we alerted all free and paid members to the fact that the low on July 1st would be a area to not be short at because this was a area that we could find strength. The TF went a little lower the following Monday then rallied back to the 640 level.

From that high on our nightly videos we were looking for the TF to make a move down to the 605 area again and now we have 60 minute blue bars saying this down move could be coming to a end. The thing to note at this point is that the ES and NQ still have room to fall so that puts the TF a a stop where we could go down and break the last 60 minute low.

There is a possibility that the market could go either way in this wedge and most of the time the price will hang out in the wedge longer than most people think and the market can get very choppy so we are noting that and trading accordingly.

Every night we provide all our members a nightly video that has our trading outlook and why. This is a great day by day look at the markets.

We break down the 60 minute chart into more time frames to get odds for each wave. Learning how to trade waves within waves is very important for any trader because that is how the markets natural flow works. It is you learning how to get targets ahead of time and then get a trading outlook so when the time and price is right you will have enough confidence to enter and hold the trade to the targets. This does take time to learn and that is why we provide all our members nightly videos to cut out the clutter and focus on good trading habits.

The next chart is the 3 minute chart from today. Notice how the market went down then we had blue bars and the indicator was peaking telling us to cover any shorts and to look for a move up. This is real time tools to help in making the decision to enter short or step aside because the market is at a high probability low that is most likely going to hold.

We also had blue bars telling us a big move was starting at 606.00 then the price rallied to 612.00. Our outlook going into today was that the 60 minute was going to base out and this can give you confidence that we have higher odds of making a move to the upside that we can trade. The stop was 1.8 on the last long trade.

Happy Trading,

www.eMiniSchool.com

Blue bar high and low

7/14/2010

This is a 3 minute chart of the NQ from today. We had a blue bar breakout to the long side and then we had blue bars at the high of the day telling us to look to exit any longs and to not re-enter long. From the 1862 high we had a minor counter trend short signal. This is counter trend so we would use a more aggressive stop and not look for a home run out of the trade.

Since we are getting up to the 2nd high targets on the bigger time frame the minor short tunred out to be a 20.00 point dive. The NQ did not close back above the moving average and it fell down and then we have blue bars at the low telling us it was time to exit any short trades and not re-enter short.

All indicators are tools. There is no magic they are tools to help us in real time to gain odds of where we should enter and where we should exit. Will it be right every signal time to the exact point? No, we are getting odds on the time frames and then we trade within those odds.

We have made our indicators for the patterns we trade. Without knowing the patterns and educating yourself it is just another indicator. This is why we use our indicator for our trading set up's. We are going for bigger moves in the market not just scalping 1 point here and there. That is risky in our opinion. But just like everything else everyone has their own opinions especially with the markets.

Looking at the chart would this help in knowing where the trend might end for that specific time frame?

Market update:

We had the 1082 as our 1st upper target from the 1002 low. We did break higher and it is important to know that upper targets are not short entries they are levels we want to look at as possible areas the trend could terminate. The 10 minute uptrend has not been broken yet but we are getting to a level where that could change.

Happy Trading,

www.eMiniSchool.com

Targets hit!

7/12/2010

From last nights update we had upper targets on all three markets and the NQ and TF achieved the targets early in the session. The ES did not and that is why the market just went sideways most of the day. Right now after hours the ES just hit the 1082.00 to the tick.

The market could gap down tomorrow and start a move down. We would be careful on the long side!

Happy Trading.

www.eMinischool.com

July 11th Update

July 11th 2010

Quick Video with our 1st upper levels going into next week.

Happy Trading,

www.eMiniSchool.com

+10 point TF short

7/7/2010

Quick video on the TF long from today. Also showing the NQ Range chart to break down the chart so you can enter on strong trending days.

Happy Trading,

www.eMiniSchool.com

Short Trade TF

7/5/2010

We had a nice sell signal at the 602.00 level and then the blue bars told us to exit the short trade at 594.00

www.eMiniSchool.com

Blue Bars!

7/1/2010

Traders,

Today I just want to post a quick chart. We break the TF down into Range bars for the smaller view. This gives us quicker traders in the bigger direction meaning that we only trade the Range chart in the direction of the 3 and 10 minute charts. Not only the 3 and 10 minute charts but the color of both of those charts. The 3 and 10 minute both have to be green to go long.

The thing to look at is the blue bars. When the indicator is low the move is starting and when the indicator is high the move is over. So if there is a big move up then the indicator gets high and we get blue bars it is a easy visual to tell us that the move is most likely coming to a end and to exit the long. And if you miss the long you know NOT to keep going long.

There was a 6 point drop and then two long's off the blue bars for 15 points combined. We are not saying you will catch all of them but in looking at the chart could it help you pick up 5-6 points for the day if not in one trade?

If you can pick up 5-6 points for the entire day you are doing better than 90% of traders out there. For some reason everyone has this 2 point goal per day on the ES. To use that makes no since. Why limit yourself with a small goal? But the truth is it takes most people all day and 7 round turns to even get the 2 point goal.

We believe that it is best to learn how to get the bigger direction then break that direction down to a way that you can trade with high odds. We do not claim to have a magical indicator but we do have tools to help you in real-time. All we are doing in day trading is getting odds on our side for that moment in time to make money. That is it, PERIOD!

It is waiting out the counter trend trades and capitalizing on the trend trade with the least amount of risk. No claims , No hype just wait and trade and repeat it. We do not try to predict every move trading for ticks. Why would anyone want to do that? Do you??

If you are trying to pick the top and bottom of the chart trading for a 1 ES point using a 300 tick chart you will lose money. At least we have never known anyone to make consistent money approaching the market with that type of trading style. Have you?

Happy Trading.

www.eMiniSchool.com