I’m doing a web seminar this afternoon on breakout trading in futures using my Trade or Fade system. You can sign up for this free seminar here.
When I was writing my watch list this morning I said I didn’t see many trade setups this morning. Today goes to show that you don’t need lots of setups on a given day, one good one can be enough.
Today had a breakout setup in the eMini S&P futures. This was the second breakout setup this week; there was a good breakout rally on Tuesday (you can read my post about it here). As you can see in the daily chart below, Tuesday’s rally took off after it rallied over the 1083.50 level. This was a swing low from last week; clearing it was a springboard for Tuesday’s rally.
Two breakout trades this week
Yesterday was an inside day and had the narrowest range of the previous seven sessions. Yesterday’s low was 1083.75. This was right on the 1083.50 area, so I anticipated it would serve as a breakout level again this morning. Last night’s Trade or Fade report for the September eMini S&P futures shows the setup and the support and resistance levels that Trade or Fade calculated for a breakout trade today.
Trade means breakout setup
The 10 minute chart below shows today’s price action. There were a couple of early morning stabs at yesterdays low; the decisive break came after the Philly Fed survey was released at 9 AM. This break triggered short entries at both yesterday’s low and the first Trade or Fade support. Around 10:45 a drop to the second Trade or Fade support at 1068.19 was an opportunity to take profits.
Sell at the red, buy at the green!
For more information on trading breakouts in futures, check out my Breakout Futures Trading Method book here.
The information contained here includes information from sources believed to be reliable and accurate, but no guarantee is made as to accuracy, nor do they purport to be complete. Opinions are subject to change without notice. Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.