image of 6E euro day trading journal header

6E Euro Futures Day Trading Journal

This is a day trading journal for a Long on 6E Euro Futures on the 22nd of August 2018 using our “Day Trading Add-On Suite for ThinkorSwim”.  This strategy utilizes the multiple timeframe W5T dot cloud and the False Breakout Stochastic indicator that is part of the Elliott Wave Indicator Suite for TOS .  This was a typical breakout trade after a rangy period during the Asian Session. The chart below shows the 5 minute chart for 6E where the Blue down markers denote the contracting range period during the Asian Session.

During the highlighted, contracting period, our multiple time-frame W5T Dot Cloud Indicator shows the 5 min and 15 min (top two rows of dots) moving from green, to cyan, to red.  Then back through to green.  This shows small pull-backs during this period.  Then as the European session opens we get more volume coming through and therefore more price action, causing a break out to the downside. Support is found at the Pivot point in pink dots and highlighted with the white ellipse.  This deeper pull back is shown in our multiple time-frame Dot cloud with 5min, 15min and 30 min turning red, then back through cyan and back to green as price action moves away from support.  We are now seeing a potential Long setup as the all the DOT clouds turn green and we get the Stochastic buy signal with Green Up Arrow.  (Note the daily dots are still in Cyan, denoting the price is in our W5T EMA cloud on the daily time frame)  The setup and trade is discussed under the chart below.

(Click on the chart image to enlarge in another window) 

image of 6E Euro trading chart

Setting up the 6E Trade

The important part here is to understand how to use various parts of our Day Trading Add-on Suite with basic  support and resistance levels for sensible entry into the trade.  Observations from the chart below to setup the entry are:

  • Previous resistance level at last pivot point during the Asian session is a hurdle to get through and therefore our entry must be above this price. (purple down marker on left of chart below).
  • Green Stochastic Buy Signal Arrow tells us we should be getting ready for a potential long (first vertical blue highlighted section of chart below). At the same time the 5min Dot in our multiple time frame Dot cloud has turned green and the next two dots down (15 min and 30 min) have turned cyan as price action goes back into our W5T EMA cloud on those time frames.
  • The next 5 minute candle shows a good solid green candle with a higher high and a higher low with the 15 min and 30 min dots turning green (brown vertical highlighted section on chart below). Momentum is now building to the upside.
  • Now it is time to place entry above the pivot point mentioned earlier at 1.16020 (green hashed horizontal line on chart below).
  • Stop Loss a couple of ticks below recent support level (red hashed vertical lines on chart below.
  • Trade was entered a coupe of candles later as denoted with second blue vertical highlighted section on chart below.  Also note our 5/35 oscillator is breaking previous positive green crown from the pivot point we have chosen for our entry strategy.

Trade management and exit below this chart. (Click on the chart image to enlarge in another window) 

6E trade management

After this Day Trade on 6E was entered, we note that the move starts to gather momentum quickly.  This is confirmed by the yellow line in the overbought zone of our False Break-out indicator and the angle of our W5T EMA cloud  (brown cloud on chart below) higher the 30 degrees.  We now use this cloud as our trade management tool and look for it to hold as support.  A move below this cloud would signal a potential move down which we wouldn’t be interested in.  One of our basic trade management strategies is to adjust trailing stop one tick below the cloud bottom.

The price hits the resistance pivot line as shown with the purple horizontal marker on the chart below.  At this point many traders would have taken profit and there is absolutely nothing wrong with that decision to take profit at a major pivot point.  In our case we wanted to give the trade a chance to push through the pivot point for further profits, but it didn’t and took out our trailing stop just blow the cloud, taking a 46 Tick Profit.  It is also worth noting that our Dot Cloud starts to go from green, through cyan to red on the 5 minute and 15 minute dots on another pull back.

(Click on the chart image to enlarge in another window) 

For this trade we used our Main Elliott Wave Indicator Suite for the ThinkorSwim Platform. You can see the Video Tour >>>HERE<<<

AND Our W5T Day Trading Add-On Suite. Watch the Video Tour >>>HERE<<<

By combining the power of these suites we have developed a robust futures day trading strategy as can be seen from the above trading journal of a recent trade.

“Trade the 5th”

 

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