ZoneTraderPro

Trading Stocks

If you were trading a stock in the S&P 500 you would then place the ZoneTraderPro EFS on the stock chart. You would then need to change the Study properties. A video of this process is in the video library and at the end of this lesson.

Right click the chart and choose "Edit Studies"
At the top of the Study Properties window, change the study (which should be the stock name) to "Zones" to bring up the ZoneTraderPro properties.
Change Tick Size to .01
The rules for trading the S&P e-mini may also be turned off.
Click Apply All and OK to close the Study Properties window.
Now you will have to determine an appropriate volume setting, which is preferred over a minute setting, for the chart. You should have a ES #F 2401 volume chart also open to help determine an appropriate volume setting.

Now with both charts open, and cursor tracking on for both charts, adjust the volume settings for the stock chart. What you are looking for is when you see a trend buy or sell signal on the futures, do you see the stock responding also? It is very common to see a stock chart trading at trend support, but the ES #F chart only at intermediate support and indicating a buy, and vice versa for a short trade. This is the reason to turn off the plot arrows on the stock chart.

In the above example of IBM and the ES #F, notice how the futures reversed before the stock. The cursor tracking is on, so where you see the red cross hairs on one chart, the cross hair will correlate to the other. Clicking on the chart will take you to a larger version, where you will see that the ES traded 2 ticks short of the strong trend resistance zone, while at the same time, IBM was trading significantly past that zone, and again the futures started to sell of before the stock did, giving up the opportunity to short the stock on an up tick, at the high, or just take profit and wait for the next long entry which occurred shortly thereafter on the smaller chart above..

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