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Home / Futures Blog / February 5 –Taylor Trading Buy Day in the EMini SP

February 5 –Taylor Trading Buy Day in the EMini SP

February 5, 2018 by Scott Hoffman

Today is a Taylor Trading Technique Buy day for the EMini S&P futures. Treating today as a normal trading day gave a decent buy this morning. If you treat the Sunday night trade as a discrete trading session gave earlier and lower long entry.

Last week, breakout setup days on Wednesday and Thursday yielded a big downside move on Friday. This sell off, the Sell Short day of the Taylor Trading cycle meant we would anticipate a Taylor Trading Buy day for Monday.

For a Taylor Trading Buy day we use the previous session low as the normal reference price for our entry- a failed move below the previous session low is our trigger for a long entry. For Swing Trader’s Insight I suggest we adjust this a bit- we look at the overnight trade as a separate trading session, meaning we can use overnight highs and lows as additional reference prices for trading the day session, which is the period I trade stock indices.

Sunday night saw downside follow through from the Friday selloff, as the March ES made a session low of 2733.00. This low was made shortly after the Sunday night open; it then made a higher low at 2735.00 just after 6 AM. We could use these lower lows as early entry reference prices for a Taylor Trading Buy day, as I noted in the STI morning note.

The 8:30 AM was 2739.25, and it promptly dropped below the 2735.00 low. The subsequent rally back above this low was our trigger to go long. The initial stop loss could be tight, below the session low of 2733.00. Our trade was based on having momentum in the direction of our trade; if the market fell back to make a new low it would show the momentum was long longer up.

The market showed a strong rally off the open as it pushed above the Friday low / TTT reference price at 2755.25 on up to a session high of 2763.00. By this time you should have tightened up your stop enough to end up getting out with a large percentage of the morning rally, and I would be on to looking for other markets to trade today.

 

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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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