Moving Averages of the Floor Trader Pivot

On the 5-minute charts above, the moving averages (MA) are 1 and 2 day averages of the floor trader pivot - (Highest High+Lowest Low+Close)/3. The market appears to react to these lines often enough to be more than coincidence.

Charles

S&P 500 Cash Closes Above 50-Day Moving Average

I would say that this is a solid close above the 50-day moving average for the S&P 500 cash market.

Charles

Tech Shoots Futures Higher Morning 04/20/11

Tech earnings have shot the ES futures above its 10-day moving average overnight. Let's see if the S&P 500 cash market can close above its 50-day moving average.

European Stocks Rise

Technology Stocks Lead European Market Higher

Charles

Bearish Afternoon ES - Tick Divergences

We got a couple bearish ES - Tick divergences as the market tested the 0930 ET open price. The result was a three-wave move to the downside. This type of trade setup is worth the wait.

Charles

Fading The High 04/01/11

It becomes safer to fade a new futures high - Tick bear divergence when the market is testing daily resistance levels, such as the upper band on the daily Keltner channel. The bearish Tick divergence at 1333.75 turned out to be Friday's high. I thought that the market would stay above the 0930 ET open, but as we now know, the market didn't find support until it reached Thursday's high. This fade is less successful when the market is reversing from a test of a daily support level.

Charles

50-Day Moving Average Bounce

The test of the 50-day moving average was successful for the bulls. Buyers kept the market above this average.

Charles

Trade The Futures Markets When The Cash Markets Are Most Active

Futures trading is the trading of futures contracts, which allows specific stocks, commodities or such assets to be traded at a pre-determined price “in the future”. NOTE the Quotation marks of “in the future”. Essentially Futures trading is just an auction process where Supply and Demand play an important key role in determining the price of the Contract, just like supply and demand determine the price of houses or oranges in the market.

The E-mini S&P 500 is no exception. It is the main market of the US, the real measure of the world economy, and since I live in EU I can assure that all traders look at it. This is the market where the best traders are playing, so examining it is crucial, knowing your competition Is equally important.

But, how do we assess our competition?

Simply through the Supply and Demand levels that this Market shows on a chart. They can be pretty clear in the Regular Trading Hours which occur from 9 30 am NY time to 4:15 pm NY time. To spot these important levels of supply and demand, one MUST begin an analysis from what the “Long Term Participants” are doing down to the “Short Term Participants” action.

Have you ever looked at the differences it makes a 24 hr chart of the ES vs a RTH chart of the ES?

The chart setting can determine the differences between winning and losing, therefore, I prefer to be where the volume and levels are at its peak, on the Regular Trading Hours. If you have no experience with currencies, you will be amazed at opening a chart of the EUR/DOLLAR and setting it up from 2 am NY time to 5:30 pm NY time, a whole new world of order arrives at your screen.

So be sure to trade the higher volume levels of supply and demand in the “regular trading hours”, or better said, be sure to trade when the majority of other traders are active in the market.

For more information on the Specific plan and strategy to trade futures, go to http://www.futures-trading-how-to.com/