Trading Dow Futures: Aug. 17, 2016

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$YM-Trading┬áThe Dow Jones Emini Futures┬ácontract for September ’16. Today’s session saw a solid 100 pt. trend to the upside. All throughout the trading day many opportunities can appear only to fade. One way to determine when to enter as well as exit is when the market level gets near the Bollinger Band. Another determinant is a pullback to, or near, the previous level marked by a Stochastics crossing.

At 9:00 am (CST) Slow Stochastics (5,3) crossed up below its 20. At 10:00 with the market now up 20 points Stochastics crosses up again. In studying Trading The Dow Jones Emini Futures so many profitable trades began when market action reverses off the Band and often enough that a wise trader might only want to trade that setup. 20 minutes later the market reverses to the downside. At 10:55 the market reverses to the upside as Stochastics crosses up and we get a confirming signal from MACD (8,17,9). Studying charts will give you a heads up on when to enter and when to exit.