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Breakout and Consolidation Strategies for Trading the E-Mini (ES)
Specs: 37 mins, 07 secs | 17.1 MB
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The E-Mini trader I spoke with today discusses two specific consolidation and breakout strategies he uses to pull 2-4 points from the markets each day. I asked him about those goals and if it ever causes him to overtrade. His answer was frank and straightforward, like the entire interview. We discuss the specific bar pattern he looks for, particularly early in the trading day, and where exactly he puts his entry orders when it is time to trade. We also talk about where he places his stop loss orders and how he determines where he will take his profits. His entire strategy is based on price action and watching for signs that short-term trends are about to change or exhaust themselves. His opinion: indicators leave too much room for interpretation and therefore are unnecessary - price is the only true sign of market sentiment. It's an idea that has served this successful trader well over the years.

Markets discussed: E-mini futures (ES)

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Breakout and Consolidation Strategies for Trading the E-Mini (ES)


Tim Bourquin: Hello everybody and welcome back to traderinterviews.com. Thanks for joining me for another show this week. We're going to be speaking with John. We're going to talk to him about his trading style and his approach to the market. I think he's got some strategies he's going to share with us and ways that we can look at the market and maybe find some good opportunities, which of course is what every interview here is about. So John, thanks very much for joining me on the show today.

John: Hi, Tim. How are you?

Tim Bourquin: I'm doing great, John. Well, so first talk about your trading style. What kind of trader are you, a day trader, a swing trader, and what markets do you focus on?

John: I am by far a day trader that concentrates on one market and that would really be the E-mini S&P.

Tim Bourquin: The E-mini has really gotten popular over the last few years. I hear more and more traders talking about that specific market. Why do you trade it?

John: I trade the E-mini S&P really for the bang for the buck as we like to call it. It moves. It's volatile. Lots of traders trading it throughout the world, which means it's not trader specific in terms of you're not trading a specific type of trader like a crude oil trader or gold trader. You're trading against the guy next door, a guy across the street, and international as well. So there is a nice variety of traders that trade the E-mini so that's a good thing.

Tim Bourquin: Is there a certain pattern or kind of a garden variety chart that you like to put on a chart to monitor the markets?

John: Absolutely. I would have to say the five-minute chart is by far the timeframe that I like to use, a plain chart, no indicators, just a five-minute chart. And I believe that because it's a five-minute chart, we have a good balance of what's happening in the market as opposed to going for...

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