This commentary will focus on the first 60-90 minutes after the Opening Bell. However, our strategies can and will provide setups the entire trading day.
The Easiest Way To prepare for Scalp Trading the ES E-Mini Futures.
Overnight price action consolidated inside the previous multiple day range during the holiday’s period. As we ignore the anomaly of price action moving lower towards the hot zone (i.e., 38-50%) fib levels, we see that the markets have a lower boundary of support and an upper boundary of resistance over the last few weeks.
Using Fibonacci analysis, price action remained in the upper 1/3rd of the prior move. Watching price action carefully for the additional weight of evidence to gauge direction. Beginning the new year, price action not congruent on all time frames as we have 20MA below the 200MA on the 15-minute charts and different on the 1 and 5-minute charts.
Heading into the pre-market and the opening bell, price action moving slightly higher.
Pre-market Economic news and reports…
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After the opening bell, price action was extremely choppy while inside the prior day’s range and inside a multiple-day consolidation area. With no follow thru, as price moved below the opening bell, we identified the consolidating triangle pattern on the 1-minute chart and waited for confirmation of a break out. Once price action closed above the prior swing pivot and the opening bell, we took an aggressive LONG entry and using a trailing stop, we moved our stop to break even and then took 2.0+ points profit.
Duration: 3+ minutes
For ultra-aggressive traders, during the first-hour session, there were only 1 or 2 decent aggressive entries that could lead to quick small profits.
For traders focused on higher quality trading, there were no good candlestick or chart pattern setups for quick profits.
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