E-Mini Trading: Trade channels and successful trends

by admin

After a close examination, e-Mini traders found that prices fell into two broad categories. The majority of market time is tied or forming a continuation channel. However, later, the market comes out of this continuation channel and starts the trend up or down. I have not found a satisfying definition for the term “trend,” and I have done it for almost 25 years.

At this point in my trading career, I prefer to see trends as directed movements that are sustainable both up or down. Of course, I am really aware that many e-mini traders “purist” have math criteria, or specific definitions are only exactly what is a trend. I would expect these individuals to review my extensive interpretation of trend behavior as wrong. In general, I have found a large part of the definition of “type purist” this is unsatisfactory for my scalping trade technique. I am only interested in the small market segment and tend to see trends when I refer to them at the beginning of this paragraph. If the market moves in a certain direction for a sustainable period of time, I will conclude that the movement of the direction is an indication of short-term e-mini prices. In short, I took the short term horizon of my trade and was not in my style related to swing trade or other trade with a long time frame.

What is saying, the continuation channel is a sidewise period that is recognized by a certain range that serves to accommodate market prices in narrow ribbons. Many trade educators prevent trade in channels because they can be unpredictable and fluctuating. By ignoring all types of channel-based trading activities, e-mini traders take themselves from potential profits at any time the price action starts forming a channel, which is almost 60 to 70% of the time.

Why do people avoid continuous channels?

This is my view that most system-based trading methodologies use oscillators and indicators to indicate the potential e-mini trade settings. In markets that are in trends, oscillators and indicators can be accurate and most help. But there are problems with indicator-based trading, especially in continuation channels. Most indicators miss the market with several bars, which affect channel trade problems. In my view, most oscillators and indicators have little value in the channel market. On the other hand, I really don’t need an indicator to tell me that the market is traded in a channel or trend. A simple glimpse on the graph traded clearly shows the ranges of choppy and narrow trade, and a clear trend.

For the purposes of this article, I will not describe how to trade the trend market and distribution. On the other hand, my trading style allows me to trade channels and trending markets. The statement is equipped with a warning, however, because the techniques used in trading channels are diametrically opposite the techniques for trading the trend market. To be sure, most of these graphs have trade opportunities and trading methodologies determined by market structure during trade. On the other hand, I tend to trade with trends, or the previous trend, when I start trading on the channel and I always exchange back towards the channel.

The trading trend market only requires a good entry towards the trend. There are a large number of e-mini trading methodologies that are well documented which provide quality entry points in trends. To summarize my eyes about trends vs. channels are quite simple, really; Trade channels need trade back to channels and trends market you trade in the opposite direction of the channel.

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