image of gold futures day trading journal header

Gold Futures Day Trading Journal

This is a day trading journal for a Long on GC Gold Futures on the 31st of August 2018 using our “Day Trading Add-On Suite for ThinkorSwim”  on the 5 minute time-frame. This strategy utilizes the multiple time-frame W5T dot cloud and the Elliott Wave Indicator Suite for TOS .  This was a 5th Wave Trade trade looking for a breakout at the open of the European Session. The chart below shows the 5 minute chart for GC Gold Futures where the overnight trend started in during the Asian Session and then pulled back on a Wave 4 in the 90 minutes leading up to the European Open. The Wave 4 Pull back found support in the green zone of our automated pullback zones, which indicated an 85% probability of holding support and going on to make a new 5th wave high.  Our 5th wave target zone was right at the daily pivot point.  The wave 4 also found support at our W5T EMA cloud (in brown on the main chart below).

The Sub-Charts

The top sub-chart is our 5/35 Oscillator and measures the performance of the wave 4 and in this case was between our expected 90-140%.  The next sub-chart down is our False Breakout stochastic, showing a pull back against yellow line in the over bought zone and hence the main trend.  The stochastic has crossed in the over-sold zone as the wave 4 finds support and indicates a likelihood of returning to the over-bought zone.

The next Sub-chart down is out Multiple Time-frame Dot cloud and you can see that colors change from red to cyan, then to green as the overnight bullish trend forms.  So we go from the price being below our W5T Cloud (Red) on the 5min, 15min, 30min, 1 Hour, 2 Hour and Daily time-frames, to all green except daily during the 3rd wave impulse wave. (note cyan means the price is in the W5T cloud on respective time-frames).  During the Wave 4 pull back we see the top row of dots, the 5 min time-frame, go from green to cyan to red, then back to cyan as the price finds support before the European Session opened. Read more below this chart about setting up the trade and the excellent outcome.

(Click on the chart image to enlarge in another window) image of Gold Futures day trading journal chart

Setting up the GC Gold Futures Trade

The important issue here is to note the Wave 4 forming support in our probability pullback zones in the 30 minutes before the European session opened.  Observations from the chart below to setup entry are:

  • Our Typical entry has to above our 6/4 MA High (green MA line on chart)
  • We also need to have entry above our W5T EMA Cloud
  • Stop Loss just below the Wave 4 low by 2 Ticks
  • Risk to Rewards is a minimum of 1:1.6 to our Automated Target Zone in Blue, near the Daily pivot.
  • Also note that Yesterday’s High (YH) and the Expected Daily Move High (EM-H) are way above our 5th wave target zone.  (These labels and calculations are part of our Day Trading Add-On Suite)
  • Long Order was set at 1210.4 just before the market opened and was taken in pretty much immediately.

Trade management wasn’t necessary for this trade as we took profit, within 10 minutes, at the EM-H line giving a 40 Tick Win.  Even if a trader wasn’t that quick, the price came back to test our 5th wave target zone as support and went back to break through EM-H, presenting another opportunity to take great profits.

image of Gold Futures day trading chart

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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