In last night’s edition of Swing Trader’s Insight I labeled the coffee futures as a (Taylor Trading) Buy day, and I reiterated this call in this morning’s STI watch list. It took a while for the trade to form up but it ended up going well.
There were a number of Taylor Trading signals for today. Some of them were a miss (Sell Short day in gold) and some haven’t worked yet, like the TTT buy day in the eMini S&P futures (although I’m still keeping an eye out for a rally). Coffee was on a Buy day signal today but it spent much of the morning lower. Still, I was keeping an eye on it, and my interest in buying it was reinforced when I talked to someone who was interested in selling it while it was still lower (fortunately he just talked about it and didn’t do it.)
The market made a session low around 8:40 AM, then made two higher lows over the next hour, which showed the lack of downside momentum. A bit before 10 AM it rallied back above the Tuesday low, which triggered out long entry. The initial stop loss could go under any of the three lows between the session low and the 9:45 low at 130.45.
The rally took off this morning as the market took back the two day decline of Monday and Tuesday. For breakout trades, I normally suggest taking profits on the same day, as markets often reverse direction in the following session (like yesterday’s TTT Sell Short day in the eMini S&P, which I wrote about HERE.)
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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