Anyone scalping the FTSE Futures??

Cha Cha slide this evening

every thing pointing to 5304 FTSE sell off and DOW targeting same number 11304 cool
 
time to have a day off me thinks

running calcs on S&P this evening gives 1120
 
morning chaps not trading FTSE today but Im on DOW with order in first one at 10961
 
DC - when calculating targets, do prices printed between 9pm and 8am matter for the FTSE or Dow?
 
Latham01 said:
Hi guys,

A little bit of advice from Martin and DaddyJohn would be great if you don't mind as my trading style is most like yours, how do you recognise when the market is ranging and is therefore not very tradeable compared to the decent trending moves? I have found myself doing well most of the time but then getting killed every so often by a sudden lack of movement with a number of losing trades meaning I have to play catch up.

Any comments would be appreciated.

Thanks
Click to expand...

Hi, a very good question.. they do say that to be a good trader it is changing markets you need to master. A market is purely about supply and demand as you know. There are two types of traders in the market 1) Long term and 2) short term. In trending markets the long term traders (instituitions) are in charge. They only get involved if the news flow is strong enough to warrant their presence, or if they perceive a buying opportuntiyt, or at certain times of year when they are rebalancing their portfolios e.g Dec / Jan. The thing to remember about these guys is that they don't jump in or out at a whim. They can get it wrong, but they are very considered. So, we can get news flow about an issue which we may consider market moving, but the big boys will wait longer until they understand the impact. My way of deciding if we are going to trend or range is to keep abreast of the news and try and forecast the balance of play. EMAs can also help on differnet time frames, if they are mostly above / below , then trending, if they are threading then ranging. I like trading the FTSE futures intra day as even in ranging markets it has enough of a range to also see intraday trends, but I do not expect them to run so long, so my expectation on risk reward and lot size changes. I may move more to fading highs and lows in a ranging market, using MFI (money flow index) which measure the ratio of buyers and sellers over a given time. If the ratio goes above 95 or below 5 then I prepare to fade, why?? because once a move is showing close of 100% buyer ratio or sell ratio then the move is becoming over extended and once there is no more buyers (you can't get more than 100%) then there is only sellers left. Hope this helps
 
DaddyJohn said:
Hi, a very good question.. they do say that to be a good trader it is changing markets you need to master. A market is purely about supply and demand as you know. There are two types of traders in the market 1) Long term and 2) short term. In trending markets the long term traders (instituitions) are in charge. They only get involved if the news flow is strong enough to warrant their presence, or if they perceive a buying opportuntiyt, or at certain times of year when they are rebalancing their portfolios e.g Dec / Jan. The thing to remember about these guys is that they don't jump in or out at a whim. They can get it wrong, but they are very considered. So, we can get news flow about an issue which we may consider market moving, but the big boys will wait longer until they understand the impact. My way of deciding if we are going to trend or range is to keep abreast of the news and try and forecast the balance of play. EMAs can also help on differnet time frames, if they are mostly above / below , then trending, if they are threading then ranging. I like trading the FTSE futures intra day as even in ranging markets it has enough of a range to also see intraday trends, but I do not expect them to run so long, so my expectation on risk reward and lot size changes. I may move more to fading highs and lows in a ranging market, using MFI (money flow index) which measure the ratio of buyers and sellers over a given time. If the ratio goes above 95 or below 5 then I prepare to fade, why?? because once a move is showing close of 100% buyer ratio or sell ratio then the move is becoming over extended and once there is no more buyers (you can't get more than 100%) then there is only sellers left. Hope this helps
Click to expand...

DaddyJohn, I think Latham was thinking more short term. What do you do to recognise a market that is now ranging instead of trading for the very short time frame?

I think it boils down to the price action on the 1 min chart. If the bollinger bands flatten out, and you get a series of 1 tick breaks higher and lower, then you are ranging for a period of time. The end of that range is confirmed by a breakout and retest of the break.

ps I like the bit about Money Flow Index. I haven't looked at it before.
 
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