Princetontrader Futures Trading Education S&P Futures Webcast March 14, 2017
The S&P Futures are in a battle between some familiar areas on the chart. Price has found support at the daily midband and weekly pivot. Price has found resistance at the 9 day sma. You can see the dynamic of that battle on the charts this morning. The impact of this four-session ping pong game is that the daily Bollinger Bands are now coming back together. This compression will give way to a decent expansion that should define the directional trade for the remainder of the month but here’s the trick. Don’t anticipate the direction or the timing of a Bollinger Band expansion. Being early is a great way to get chewed up in a bunch of false starts (like yesterday if you overtraded the day) and being early and wrong on direction is worse. Expansions that are real are violent. It’s best to be patient and trade good setups even if that means you take fewer trades a day while we are compressed. We did 3 regular session trades yesterday. On Friday, we did eight. Why? Better tape. Trade (or don’t trade) the tape you are given not the tape you want.