Trading Dow Futures: Aug. 12, 2016


$YM-Trading┬áThe Dow Jones Emini Futures┬ácontract for September ’16. At 3:35 am (CST) Slow Stochastics (5,3) crossed down above its 80 as the market could move no higher than its upper Bollinger Band near 18,585. The market action went sideways for approximately 35 minutes when Stochastics crossed down near its 50 and a continuation of this basing period lasted another 60 minutes before a downtrend of approximately 90 points took place over the next 4 hours. Each point is worth $5.00. Many brokers offer $500.00 day trading margin for each contract. The Dow consistently trends 100 points or more. By keeping in mind this fact trade management becomes much easier to focus on. Try to capture at least 70% of a trend. If a trade starts out gangbusters but falters shortly thereafter allow yourself to be stopped out with a minimal gain or loss and plan on getting ready for the next big trade. Swing for the fences with the Dow $YM.