Wednesday, July 13, 2011

CME Setup Entry, How to Enter a Trend Trade



I decided to post this cause its a great example of how to enter a trade from a trend that is establishing. When I'm scanning for stock setups, or any currency futures, es or anything like that I use this technique to enter the trend ONLY if have missed my KRA trigger upside, but as you can see my upside Key Reference Area triggered short @ 298.30 and I am short at that level with a objective of 278. But if I have missed this initial upside short level, I would be looking to enter at 291.10 with a stop above the most recent swing high of 293.37. This is a great Risk/Reward trade setup 13.1 to 2.27 or basically 5 to 1 risk. These are the type of appropriate risk to reward setups that must be taken to be successful. One thing to note here is this previous pivot swing high of 293.37 is critical 1.) for the people entering the trend from the 291.10 area, but 2.) for me who entered at 298.30 if this level is taken out I will be stopped out with a +5 trade cause more than likely if its taken out, its headed back up to 298 for a retest or exceed of my key reference area, and I'm not going to take that change. If you want to see a larger zoomed out picture of cme chart before the mark up click on the positions tab on the home page. I hope this post was helpful, Good Trading Kratrader.

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