The E-mini is currently trading in near all-time high ranges. This has been a difficult time for my trading method as I rely heavily on past data to locate specific values for short term trading support and resistance.

My trading method depends heavily on these support and resistance values (SRVs) and I can tell you for a fact that it makes trading much more difficult when they are not available.

Fortunately, conditions like these are both infrequent and fairly short term in nature and I am confident that this market will soon make a sufficient regression that my SRVs will again be there as a guide to trading.

In the mean time I have to use Bollinger Bands and my usual over-bought/over sold indicators along with trends and price action indicators, which are pretty good, but I truly miss my SRVs.

When trading the E-mini I use one additional chart that I do not use for other markets. That chart is a 50 ticks per bar chart of the NYSE tick (TradeStation symbol $Tick), as shown in Figure 1.

Figure 1 $Tick – 50 ticks per bar

This chart helps me predict the future movement of the E-Mini as follows:

The Yellow line, a custom oscillator is plotted over the price bars of the $Tick symbol. The peaks and valleys of the yellow oscillator indicate to me the probable price level for the symbol in the near future.

For example, the above chart indicates that the $Tick symbol is likely to go down to the -600 level in the near future, favoring a short trade in the near term.

There is pretty good correlation between the movement of the $Tick and the E-Mini because so many NYSE stocks are included in the E-Mini.

 

One Response to Trading the E-Mini – All Time Highs

  1. I have not checked in here for some time as I thought it was getting boring, but the last few posts are good quality so I guess I’ll add you back to my daily bloglist. You deserve it my friend 🙂

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