Morning Trades: Wyckoff Trading
This has been a very good morning for Wyckoff traders in the S&P futures.
The market continued to rally after yesterday’s strong up move. It’s not a surprise to see follow-through the next morning.
Two long trades (one still active as of this writing) and a short, all based on the interplay between Wyckoff principles and market structure.
Trade #1 is a spring in an uptrend on top of support. Target is the top of the trend channel (green trend line).
Trade #2 finds price at the top of the trend channel drawn from yesterday’s data points. We see demand wane at the top and negativity enter into the price action. Target: prior support or lower.
Trade #3 is another spring at support with demand coming in. Target: a push above the last swing high. This trade remains active with a current stop at break-even for a so-called, ‘free’ trade).
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Thank you for posting this article.
Hi Gary,
The line at the very top of the chart in this posting says “Emini S&P 500 Continuous Contract [Mar18]”. The legend below this line also says it is “ESH18” as the contract symbol. I am assuming these are labeling errors and the chart shown in the posting is in fact based on June 4, 2018 data.
It may be useful for Weis Wave users if you can indicate the Weis Wave indicator settings in charts (like the current one) that accompany your excellent blog posts.
I learn a lot from studying your blog posts. Thank you very much for taking time out of your busy schedule to post these charts with clear annotations and precise and concise explanatory notes.
Rama.
Hi Rama,
Not sure why the Mar18 and Jun18 contracts were both displayed. Sometimes the continuation contracts (i.e., @ES) have a little overlap with the front month contract around the roll. I am assuming this is what caused that as everything else seems to be correct.
Weis Wave settings for the S&Ps on the intraday (e.g., 3-min, 5-min, 15-min, or 3,000 Tick charts) would be 1) calculating the Weis Wave from close to close (not high to low) and 2) reversal set to 0.75 pts. These setting have been stable since about 2006 or 2007.
Thank you very much, Gary.
Rama.