An original approach to trend discovery and trade entry Initial forays into day trading stock index futures reveal a starkly different decision environment. There is no time to dwell on technical conditions. Intraday volatility in the stock indices is far more exaggerated than the daily bar charts of other markets, partly due to the extreme leverage, partly due to the intense attention. And positioning techniques that prove reliable in the action of the long-term trends in other instruments tend to fail in the countertrend reactions of the highly leveraged S&P futures contract within the short-term. For the informed trader, tremendous opportunities in these intraday trend swings can be captured. This book will show you how. Filled with detailed technical models, this reliable resource skillfully utilizes innovative methodologies for trend discovery and trade entry in mini-stock index futures markets. It offers a fresh approach to understanding and capitalizing on market volatility, allowing you to sort out the apparent chaos of the day trading environment through codified and recognizable trade entry setups. Highlights trading techniques that are anything but mechanical scalping Explores conceptual event models and their accompanying rules Contains tools by which major intraday swing trends can be identified quickly and often at the very turning points where they begin Explains the underlying order and structure to the markets based on the repetitive nature of human behavior Engaging and informative, this reliable resource will put you in a better position to excel in today's dynamic markets.
Preface xi Part One Time Frame Concepts Chapter 1 A Three-Frame Day 3 Chapter 2 Opening Range Bar 13 Chapter 3 Pivot/Exhaustion Grid 23 Chapter 4 Dough Bar to Die Bar 49 Chapter 5 Leadership Divergence 55 Chapter 6 The Work-Done Concept 63 Chapter 7 Trading the News 69 Part Two Day Model Patterns Chapter 8 Persistent Trend Day 81 Chapter 9 Test-and-Reject Day 95 Chapter 10 The Split-Open Day 103 Chapter 11 Day Model Sequence Cycle 105 Part Three Repetitive Chart Patterns Chapter 12 The Momentum Grid 115 Chapter 13 Pre-Breakout Pause Pattern 121 Chapter 14 The Classics Revisited 125 Chapter 15 MA Pattern Concepts 141 Part Four Confluence and Execution Chapter 16 Transition Time Reversals 151 Chapter 17 Trade Entry Models 157 Chapter 18 The Trade Plan 173 Appendix A Companion Website 185 Appendix B Color Legend 187 Appendix C Serial Sequent Wave Method 191 Appendix D ValhallaFutures Indicator Package and Intraday Index Futures Trading Course 195 Appendix E Screen Capturing an Event Library 197 Appendix F Randolph Newman 199 Appendix G Fibonacci versus Pivot/Exhaustion Grid 203 Appendix H The Last Triangle 207 Bibliography 209 About the Author 213 Index 215