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Home / Futures Blog / Today’s Taylor Trading Setup in Euro Futures

Today’s Taylor Trading Setup in Euro Futures

October 18, 2016 by Scott Hoffman

STI logoThe Taylor Trading method seeks to anticipate a market’s direction for a given day and then trade when the market moves in the anticipated direction. Combining things like the longer term trend and other things like breakout setups can create a good synergy of patterns to look for.

It’s been difficult to find many good Taylor Trading setups that I use for Swing Trader’s Insight. Markets either have small range breakout setups that go nowhere (or like stock index futures, rally overnight as they did last night.) I would guess some of this can be attributed to uncertainty about the US Presidential election. However, that’s not to say there’s nothing to do, we just need to look at many markets and concentrate on those that look to have potential.

The Euro FX futures were on as Taylor Trading Sell Short day signal as well as a breakout setup (NR7 on Monday). The Sell Short day told us to look for an opportunity to short on a failed rally above the Monday high while the breakout setup suggested we look for continuation on an early stage market move.

euro-daily-oct-18

The Taylor Trading Technique Sell Short day suggested we should look to short on a failed rally above the previous day high of 1.1037 (This is based on where the market was around the Chicago open; if it were earlier in the session and / or if the market was higher we might use a higher overnight price.

Around 7:30 AM there was a failed rally above the Monday high; this provided us with our first selling opportunity. The initial stop loss could go above the high of the bar of entry or a higher high if you wanted more room.

euro-intraday-oct-18

Given today’s breakout setup, we like to look for impulse moves in the direction of the breakout. In this case we could lo0ok to short on a break of the session low of 1.10175, anticipating this would extend the downside. That’s what we got as it fell to a session low of 1.0997.

A larger downside breakout would be predicated on a move below the Monday low of 1.0992. This didn’t happen- the 1.1097 low was tested and held about an hour later. This was a warning sign to cover shorts or at least tighten stops. If you were looking for another trade here, I would look to short if it took out the Monday low of 1.0992.

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Essential Guide for Futures Swing Trading

In this guide, experienced trader and broker Scott Hoffman explains the trading methods he uses to analyze and trade the futures markets and to publish his trade advisory, Swing Trader’s Insight.

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Risk Disclosure

This material is conveyed as a solicitation for entering into a derivatives transaction.

This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.

Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.

Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.

You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.

Filed Under: Swing Trader's Insight

About Scott Hoffman

Scott graduated from the University of Chicago in 1986 with a degree in Economics. After graduation, Scott worked on the floor of the Chicago Mercantile Exchange then moved upstairs, serving as the personal broker to a former chairman of the Chicago Board of Trade. There, he worked as a broker and margin manager, starting up the firm’s full service brokerage division.

Today, Scott serves as an educator and mentor for new traders, and as a trading partner and ally for experienced traders. The breadth and depth of Scott’s knowledge make him the “go to guy” for both retail and institutional traders.

Scott also publishes two futures advisories, Swing Trader’s Insight and Trade or Fade. He also writes the futures trading blog at www.futuresinsightblog.com. Scott has written articles for a number of futures publications and has done numerous futures trading seminars, including seminars for both the CBOT and CME.

Scott offers his customers the knowledge he has gained from his more than 25 years of experience in the futures business. Scott is accepting new clients at this time.

Scott lives in suburban Chicago with his wife and three children. In his free time he enjoys coaching his children’s sports and various other athletic activities.

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Risk Disclosure

This material is conveyed as a solicitation for entering into a derivatives transaction.

This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.

Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.

Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.

You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.

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