SP Down 45 Points in Two Days Leads to Great Trading Setups

Post author:Christian Knox
Post published:August 3, 2014
Post category:Uncategorized
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Great Trading Setups

The last two days saw a big sell off in the markets with some great trading setups. Fortunately the increase in volatility did not decrease liquidity. If a decrease in liquidity had happened, you would not see that quality patterns setup on the chart. The e-mini premium would have been all over the chart as in the example below.

E-mini Premium for Breaking News — Increase in volatility in the E-mini Premium due to Breaking News

Instead the liquidity necessary for proper trading setups was present, and we saw some great pattern trades. The best sequence occurs in the last two hours of Friday, with 3 perfect setups in an hour.

What is also important about these charts is that they look no different than any other trading day. Long trades still have perfect trading setups, and you can find even more trading setups with the short trades also.

Charts from Thursdays selloff

Charts from Fridays selloff

Three Perfect Trading Setups

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Risk Disclosure: Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.

Hypothetical Performance Disclosure: Hypothetical performance results have many inherent limitations, some of which are described below. no representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.

Great Trading Setups

Charts from Thursdays selloff

Charts from Fridays selloff

Three Perfect Trading Setups

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