Swing Trading the ES

Discussion in 'Index Futures' started by jwcapital, Mar 11, 2008.

  1. I like to use the slow stochastic when entering trades. In an established downtrended market, I enter my shorts when the slow stochastic reaches the 80% level and allow the trade to continue until it reaches the 20% level. I place a protective stop 12 points (because of the volatility) above the entry point. In addition, I will also enter a long when the slow stochastic reaches the 20% level, but exit it at the end of the day or when my target price is hit. I do not like leaving a long in place overnight in a downtrend. In an established uptreand, I do the opposite. First losing trade occured yesterday. I entered a long at 1292.75 with a protective stop at 1280.75 and a target price of 1311.75. Of course I was stopped out for the first time in a while. Since I do not put on longs overnight, I missed a profit opportunity this AM. I want to see if there is a decent pullback, but I will probably have to wait until the stochastic reaches the 80% level again to enter a short. Have we reached a bottom, or are we still trading in a range? I think until the credit market is straightened out and Spitzer is indicted, we won't see a major bottom. Your comments are appreciated on my strategy.
  2. We are still inside the 15 min opening range since the opening.. I haven't actually traded yet.. patience :) it will break.