In and Out method, meaning we take less trades than a scalper but more trades than a position day trader. I seek to capture the sweet spot of an intra-day move. I do this by using a few tools and a e mini trading system I've put in place.
The tools I use while online day trading and found inside of my e mini trading course are:
1. Major Support and Resistance
2. Market Profile
3. Trend Analysis
4. Pattern Recognition
5. Price Action
6. Trade Management
We will discuss the first 3 in this article and the final 3 can be found on the blog.
1. Major Support and Resistance. Major Support and Resistance levels provide us the necessary information for targets and exits. In addition, they provide the necessary information for initiating Long and Short online day trading trades.
2. Market Profile is a market analysis tool or study that allows us to arrange market data in a way that builds a Road Map. We will often refer to MP as our road map, as its main function is to map the course of the market, providing us with Trade Direction, as well as key pricing area. By Road Map we mean an overall market direction, this allows the index trader to know if we are looking to trade Long or Short. We also have an idea as to where the market Targets are. This is one of the most powerful tools for a index trader to use.
By Price Levels we mean areas of the chart where the direction is likely or could change, also known as Inflection Points. We derive our Market Profile from a 30 minute chart and will carry the Market Profile numbers to a 3 minute chart. This information can be found in complete detail inside the e mini trading course.
3 Trend Analysis - Sentiment & Momentum. This allows us allows us to evaluate the trend on a smaller time frame. Our tools for discovering Trend Analysis will include the slope of the 13 min. chart in conjunction with the data gathered from our 30 min. chart, 1 day chart and MP.
We confirm the trade pattern with the market sentiment using the TICK and TRIN. We confirm the momentum of the Stochastic's on the 13 and 3 min charts. A scalp trade may not be confirmed 100% on either chart. This is covered in complete detail inside our e mini trading course targeted for an index trader looking for a powerful and profitable e mini trading system.
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I write foremost about futures topics, specifically online day trading the emini 500. Many technical techniques can be discovered at Day Trading Templates & Training blog above. I encourage you to read the blogs and discover how to trade. You can add $500-1000 dollars a day to your pocket book. Much Success.
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Article Source: http://EzineArticles.com/?expert=Jonathan_Ingram
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