Learn to Trade Emini Futures - Direction Momemtum Trend
February 6, 2012 at 5:29 PM (QQQQ)(DIA)(SPY)(GLD)(SLV)
The S&P 500 Emini Futures gapped lower on the Globex open Sunday night and spent the next 12 hours crawling back up to where we were Friday afternoon. It's now Monday night on Globex and price just touched the Weekly Trading Zone at 1342/1343 completing an all day Zone to Zone move.
The Zone to Zone move also correlates with our Emini Tweet last night to "consider buying the market or 1333 Limit" -
SP500 Emini Futures
We also sent out a Tweet on the Euro to "consider selling 1.3095 Stop" -
Euro 6E
This marked one of the rare times of late when we have seen the Euro and U.S. equity markets diverge. Watch for more signs of decoupling over the coming days as the Euro-drama and Ameri-bama play their hands against a backdrop of Mideast tension. When you put your hand in another man's pocket you never know what you'll find. Now that we have him by his cash, anything could happen.
DMT - Direction / Momentum / Trend
The CF_DMT Indicator provides 3 critical pieces of information to the Emini Trader. First, you know the most likely direction of price action as it pertains to the time frame you are trading. When price action breaks out of consolidation and begins to move, the DMT graphically displays the momentum that accompanies the move. As the move progresses, the strength or weakness of the trend is displayed allowing you to trade to targets while minimizing risk and protecting profits. This indicator is made available to CFRN Partners and works well in all Emini Futures Markets as well the Euro 6E, Equities, Metals, Crude, and even Grains.
The DMT is not a trade trigger. The DMT is a confirmation tool. It confirms a move that is already under way. On the chart below that will become evident by each swing I've highlighted.
;)
click to enlarge
The chart above was posted on this blog 1 year ago. I've reposted it tonight to point out that it still works as well today as it did a year ago. Some indicators only work in trending markets, some only work inside trading ranges, some need high volume, some need some specific character trait to be displayed by price in order to become effective. Not so with the DMT. It performs reliably under differing conditions and is a bit of a Trader's Swiss Army Knife. Across multiple markets and multiple time frames, the CF_DMT belongs in every trader's toolbox.
How has it performed lately? Here are 2 charts from last week -
SP500 Emini Futures - CF_DMT Indicator 02/01/12
SP500 Emini Futures - CF_DMT Indicator 02/02/12
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