Trade Plan ES Futures: Week Starting May 12th, 2024
Trading Strategy: Pivot Reversal with Predetermined Targets
Key Levels:
- Weekly Pivot: 5250 (Currently trading below at 5238)
- Upside Targets (Resistance): 5280, 5307, 5334
- Downside Targets (Support): 5224, 5173, 5146
Rationale:
This strategy aims to capitalize on potential reversals from the weekly pivot level. Since the ES is currently trading below the pivot, we’ll focus on two scenarios:
Scenario 1: Short Trade (Pivot Rejection)
- Entry: Initiate a short position if the ES rallies towards the weekly pivot (5250) but fails to break above it convincingly. Look for bearish candlestick patterns or momentum indicators confirming the rejection.
- Targets: 5224, 5173, 5146
- Stop Loss: Place your stop-loss order a few ticks above the weekly pivot (e.g., 5255) to manage your risk.
Scenario 2: Long Trade (Pivot Support)
- Entry: If the ES drops further but finds support at the pivot (5250), consider a long position. Look for bullish reversal signals, such as a candlestick pattern or a positive divergence in an oscillator.
- Targets: 5280, 5307, 5334
- Stop Loss: Set your stop-loss below a recent swing low or a few ticks below the pivot (e.g., 5245).
Trade Management:
- Partial Profits: Consider taking partial profits at each target level to lock in gains.
- Trailing Stops: Once a target is reached, you might adjust your stop-loss to breakeven or trail it to protect your profits.
- Risk Management: Never risk more than 1-2% of your trading capital on any single trade.
Additional Considerations:
- Market Conditions: Assess the overall market sentiment and trend. Are there any major news events that could impact the ES?
- Technical Indicators: Use additional technical indicators like moving averages, RSI, or MACD to confirm your entry and exit signals.
- Volume: Monitor trading volume for confirmation of price movements.
Important Disclaimer:
Futures trading involves significant risk. This trading plan is just an example and should not be considered financial advice. Always conduct your own analysis and consult with a financial professional if needed.
