Basic Trade Set-ups

#1 Value area Highs (short).

When we open below value area high and we are approaching the value area high. Approx stop of 1.5 pts above the value area high.

#2 Value area Highs (longs).

When we open above the VAH, go long as close to the VAH as possible. Approx stop of 1.5 pts below VAH. (or a close into value at the turn of the 30 min bracket).

#3 Value Area Lows (longs)

When we open in value (above VAL) go long as close to VAL as possible. Approx stop of 1.5 pts below VAL.

#4 Value Area Low (shorts)

When we open below VAL, look to go short as close as possible to the VAL. Approx stop of 1.5 pts above value (or a close into value at the turn of the 30 min bracket).

#5 1 Tic IB High/ Low

If we open in value and trade back and forth thru the opening range, after the IB is established we can short the IB high or go long the IB low on a 1 tic move above or below the IB.

( caution: when we open above or below value and have a small IB—we do not take this trade—(higher risk trade).

#6 Breakout (small IB).

If we open above or below value and we establish a small IB we are now setting up for a possible trend day or very volatile day.

Myself, I will go with the breakout of the IB (whatever way it goes first). I am looking for a quick move away from the IB.


Basic Trade Set-ups (part 2)

#7 Opening Range Trade (short) ES

When we open 3-4pts (preferably higher). I use the 1st min of the opening range and I add 1pt to the opening range high.

I will try and short anywhere from the high of the opening range up to 1 pt above the opening range high. Approx stop is just above 1 pt from the opening range high.

#8 Opening Range Trade (long) ES

When we open 3-4pts (preferably lower). I use the 1st min of the opening range and I subtract 1pt to the opening range low.

I will try and long anywhere from the low of the opening range up to 1 pt below the opening range low. Approx stop is just below 1 pt from the opening range low.

#9 Double IB High/ Low

Longs are placed at or above the 2xIb low (approx stop is 2 pts).

Shorts are placed at or below the 2xIB High (approx stop is 2 pts).

#10 Neutral Days

Shorting 2xIB high (approx 2 pt stop).
Longing 2xIB low (approx 2 pt stop).

Or shorts or longs may be placed in the area of approx same amount of tics above or below the IB (looking for symmetrical profile).

#11 Developing Value Area Long/ Short

Once range extension is established longs or shorts may be placed in the direction of the range extension.

Approx 1-1.5 pt stop.

Trading this set-up requires some degree of finesse and may require a few stabs at the attempt.

Watch tpo count and rotations!!!!

#12 2.5 Retracement

self-explanatory risk –few tics, no more than 1 pt.

# 13 2.5 Previous Day’s High/Low

If market cannot take out the previous days high or low by more than 2.5 pts look for a move in the opposite direction.

More to follow.