Friday, November 14, 2008

Trading ES

With the big ranges we are seeing in the last weeks and months I'm thinking about trading ES again. It feels safer than other contracts which can jump 10 to 15 ticks on me in the blink of an eye. I applied my standard chart template to ES, but wasn't really content. And I did what you should do in such a case. Go back to the basic.

Start with a clear candlestick chart and add what you feel is missing to read the chart:

I added a moving average to have a trend feeling.

I added my round number tick lines calculated from yesterdays close, which I use as horizontal gridlines. Not only will they show me round numbers most traders trading with numbers only have on their screen as well, the spacing also tells me something about the volatility of a contract compared to another one. The wider the spacing the slower the contract trades.

Some markers on the right side showing me the pivot, today's and yesterday's important trade levels.

That's it.

But my wonderful band I introduced to tell me about oversold or overbought conditions, my Donchian channel...Gone after I applied the great tool I had sleeping in my pocket. Stashed and waiting to be used again

Globetrader_19

Sweet, don't you think, considering I got that picture by applying the Fib-tool to the opening range from 888.25 (strong premarket support into the open) to the open move high at 907.

3 comments:

Newton Linchen said...

Cris,

As I trade the brazilian stock index futures, and my software is not the same of yours, could tell me how many minutes-chart would this ES tick chart be?

Just aproximately.

Best regards,

Newton Paulo Linchen, Brazil

Globetrader said...

Hi Newton,
I’m sorry, but you can’t compare tickcharts with minute charts. It’s just not possible. One bar might be 1minute the next one 10minutes or longer if it’s aftermarket. There is time information on my chart, which might help you.


Best regards,

Chris

Newton Linchen said...

Cris,

I understand that... It's just that my data provider have only the spfut (big contract) and I would like to know how to apply this tick chart to the brazilian futures contract.

We do have tick charts here (since september 2008! - look how lagging we are!).

Perhaps if you tell what do you search in this particular tick chart - I would be able to compare it to our brazilian futures contract.

I would say I am really jealous of your chart provider! It has some features we (here in Brazil) could only dream of.

Best regards,

Newton.