Phasmatis here - Latin for Ghost In this journal I'll share a method appropriate for ES small traders (< $100k in account). It could be used by larger accounts to help improve timing, but it's designed to help the little guy. One of the great things about the ES is it's now being used by institutional traders. Unfortunately for them they can't disguise their trading very effectively. This creates a informational edge for the small trader. The way the normal futures market works is the larger player does in futures what they plan on doing in the cash market. For the ES this means big players Buy/Sell ES contracts before they do the same with stocks. By doing so they can reduce slippage as they trade their baskets of stocks. After they're done they unwind the futures position. This method of trading is all about understanding the battle between bulls and bears institutional players. To use it you'll need to track three items. You'll need the ES price, ES volume, and NYSE Tick. All must be available in chart format on a realtime basis. I start out each day with all set to 5 min. bars. I'll explain what I'm doing in a minute. Here's a chart of what I'm starting with.