Our trade for S&P Mini-Futures triggered. We entered at 149525. The price at one point got to 150350. This is a 8.25 move which is really good.
The question is now, where is our profit target and our Stop. Below is the daily timeframe. Notice, how far the Kijun Sen is from price. Also, notice the Kijun Sen and the Tenkan Sen are bullish but they are getting closer together. Eventually, they may cross. Until they do, we are still bullish in our sentiment but we need to watch for it.
I have also draw the Chikou Span Support and Resistance values.
Since the Kijun Sen is far from price and we want to PRESERVE our profits, we are going to switch to the 240 timeframe to get a better Stop from the 240 Kijun Sen. The 240 Kijun Sen is at 149150. In the 240 timeframe,everything is healthy so we are looking good.
In regards to Profit target, all the Chikou Span resistance values are shown. You can choose to step through the resistance levels through a Swing trade strategy or stay with a Position trade strategy on a 240 timeframe. I personally going to stay in a Position trade strategy in 240 timeframe. It gives me more peace of mind trading since I don’t have to watch the screen to see when the level are reached and also I don’t have to worry about “noise”. With the futures, you get a lot of noise due to Federal reports coming out at 8:30am (EST), 10:00am(EST), and 2:00pm(EST). Also, you get fluctations based on huge Equity earnings. A lot of time when one of these reports comes out, the futures move 2 or 3 points in one second and then reverse the other way. Also, notice our the price respects the Kijun Sen in the 240 timeframe for the S&P mini futures. This is another reason to position trade it instead of swing trade it.
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S&P Mini-Futures: 4-26-07