Hello everyone, Day trading futures can be super rewarding! No PDT, and a market that is open in extended hours. Just the past couple of days I was able to make a couple of scalps on the SP Micro Contract. The micros are 10% of the Minis which means you can trade them through Ninja Trader with only $50 dollars for intraday margin.
The Charts tell us useful information if we open ourselves to what they are trying to tell us. We can learn what could potentially be and edge!! This same occurrence (seen in the chart images) has happened twice in the past two days of trading!
In the chart image, we can see a clean drop in the price. Typically the drops are volatile and quick. After the hard drop, we get a bounce, or a slow climb back to the upside.
This exact same type of move happened back to back mornings. First on Thursday morning, and then as we can see in the chart above on Friday morning as well. Not to mention you could probably find this similar trading pattern happening on many other days as well.
This was Thursday mornings chart, although a little bit different, it has a similar construction. This day I was able to make some very profitable scalps to the short side! I then bought into a long position but was stopped out which is fine and happens. Every time you think you have found an Edge, you need to practice it in one way or another. Always understand that any trade comes with risk because we cannot fully predict the market. Always prioritize your risk management. I will see you all in the next article. If you have noticed this pattern, let me know in the comments, or if you plan on trading/paper trading this occurrence, let us know how it worked out!