Big Picture by Trade Aptitude

Yesterday’s results: Shorting 6035.50 stopped out. Buying 5988.00 offered 8.25 points before reversing. 

Today’s Best S&P Futures Turning Points: No great levels today. 

The World Index: (+100/-100) falls from +21 to -29 with most major world markets mildly Bearish on low volatility. S&P futures slightly higher. 

Catalysts: S&P Home Price Index @ 9:00. Consumer Confidence, New Home Sales & Richmond MFG Index @ 10:00. FOMC Minutes @ 14:00.  

Quick Tip: Big Picture 

Regardless of your trading timeframe, daily, swing, or position, using a “big picture” analysis to your entry decision adds edge. It’s the higher timeframe. 

Traditional technical analysis suggests that a multiple of 3 to 6 is appropriate. For example, if you’re a day trader using a 5-minute chart for your entry, aligning with the trend of the 15- or 30-minute chart will help. A swing trader using a daily chart would align with the weekly chart. 

Consider this: if you’re using your entry timeframe trend change to exit the trade you might be giving up too much open profit. Maybe a smaller timeframe correction would be a good signal to exit and keep more of the open profit. I don’t have any evidence to share but the idea is worth exploring. 

Great traders always seek to improve their plan. Being curious and investing in research time is worthwhile. If you don’t find an edge, at least you know what doesn’t work. That’s helpful too!

Our teams day trade futures and swing trade options. Humans are tribal. We perform better together than alone. Join a team, learn our strategies, and trade with us for 30 days. Money back if you’re not blown away! 

Trade fearlessly,

Mike Siewruk