A Simple Inside Bar Day Trading Strategy Using YM Futures - Trading Setups Review

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Jun
11

Trading the ym

By Gardalar

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To day trade successfully, we need a teh that is volatile and tbe. Its underlying is the Dow Jones Industrial Index. Read on for a more info inside bar day trading strategy with examples from the YM futures trrading.

It finds the smallest time-frame learn more here is tradeable for a price action trader. As long tne you are trading above the minimum tradeable time-frame MTTprice action analysis is possible. But note that the MTT changes over time as market price tradinng changes. Hence, we will be using the 4-minute time-frame. These rules attempt to capture the first low-risk pullback in a new trend using an inside bar. We define the trend with the help of a period simple moving average SMA.

Why use a stop order to enter the market? The orange line is a period SMA. There are many options what is algorithmic strategies exiting. As we expected the trend to continue, the most conservative target is at the last extreme low.

Even with this conservative target, this trading setup gave us a reward-to-risk ratio. Hence, it was a setup of high positive expectancy. In an active market, using the right time-frame, inside tradin offer great trading windows. This tradinb strategy is simple as you only the a SMA and knowledge of inside bars.

But there are two points to take tradung of when employing the trading strategy. First, look for new trends. This is because retracement trades early in a trend has higher chance of success and more room for profit.

Second, avoid congestion areas. This is crucial for inside bar trading. This is because inside bars are often found in congestion patterns. The trick here is to distinguish between an inside bar in congestion and one that is not. Look at the two examples again. In the winning example, YM was clearly drifting upwards and trading top shadows were more prominent. It was not congesting. But in the losing example, the price bars were meandering sideways with both the and bottom shadows.

It was definitely forming a congestion pattern. Hence, we should have avoided trading the bullish inside bar. With regards to target placement, you should at least aim for the last extreme of the trend. When the momentum is trading, you can aim further. Another trading option is the high or low of the last trading session. Read: 10 Ways to Take Trwding. Can that be an additional condition for trading mgmt.

Looking out IB bouncing off support and resistance will help too. If you look 5 candles beyond the failed IB, there is a red IB. Could that have been used as a entry? Do you mean entry for a short entry? Your email address will not be published. Leave a Reply Cancel reply Your email address will not be published.

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Hello Rleplae, thanks for the message. It finds the smallest time-frame that is tradeable for a price action trader. Elite Member.

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gremmy-gr.host › The Markets › E-mini Futures. Ive been trading the DOW since After years & going all electronic, heres the best approach for taking points during intra-day ranges.

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Ive been trading the DOW since After years & going all electronic, heres the best approach for taking points during intra-day ranges. gremmy-gr.host › The Markets › E-mini Futures. For example, let's say the standard Dow futures contract is trading at 10, Day-trading the Mini-sized Dow Futures (YM) When trading the YM on an.
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