Saturday, March 20, 2010

Friday 03/19/2010 - E-Mini S&P 500 Futures Review/Analysis

E-Mini S&P 500 Futures (Options Expiration / Quadruple Witching)
Trading on Friday was great! The Key Levels and Scenario posted the night before played out very well. I posted "A reversal of the overnight trend is something to watch out for at the cash open" and we reversed the overnight up move at the cash open. If you check the Day Session Volume Profile Chart I've been posting since Tuesday, you'll see I was anticipating a test of the 1150.25-1151.75 Area which we finally got on Friday.

I noticed several complaints on Twitter/StockTwits of failed TICK Divergence setups on Friday. I typically only act on TICK divergences that occur at the Key Areas I post every night. I've annotated my 1-minute TICK/ES chart below, and I hope it provides you with some insight and helps you identify better setups in the future. That being said, keep in mind that nothing works 100% of the time. Secondly, a TICK Divergence shouldn't be the only reason to enter a trade. I typically look for a minimum of two reasons to initiate a trade; but ideally there are three reasons to enter a trade. So my only other recommendation would be make sure you have at least one other reason to enter the trade besides a TICK Divergence.

Enjoy the rest of your weekend and best trading!

ES/NYSE TICK 1-Minute Chart (Morning Session)

ES/NYSE TICK 1-Minute Chart (Afternoon Session)

ES 5-Minute Chart

ES 30-Min Volume Profile Chart

ES Day Session Volume Profile Chart

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