Trade Plan ES Futures: week starting April 1st, 2024
Key Levels:
- Resistance Levels: 5322, 5356, 5390
- Weekly Pivot: 5290
- Support Levels: 5259, 5222, 5193
Trade Plan:
- Long Trade from Pivot Area (5290):
- Look for bullish confirmation around the pivot area (5290).
- Potential entry triggers include bullish candlestick patterns, strong bounce off the pivot, or a break above the pivot with increasing volume.
- Set initial profit targets at resistance levels: 5322, 5356, and 5390.
- Manage risk with a stop-loss below the pivot area or below the nearest support level (5259).
- Short Trade from Resistance Levels:
- If price reaches resistance levels (5322, 5356, 5390) without strong bullish momentum, consider shorting.
- Wait for bearish confirmation such as rejection from resistance, bearish candlestick patterns, or divergence signals.
- Set initial profit targets at or near support levels: 5290, 5259, 5222, and 5193.
- Use a stop-loss above the resistance levels to manage risk.
- Monitoring for Breakouts:
- Watch for breakout opportunities above 5390 or below 5193.
- A breakout above 5390 could signal a continuation of the uptrend, while a breakout below 5193 could indicate a trend reversal.
- Wait for confirmation of the breakout with strong volume and follow-through before entering trades.
- Set appropriate profit targets and manage risk with stop-loss orders.
- Market Conditions Monitoring:
- Stay updated on market news, economic indicators, and geopolitical events that could impact market sentiment and price action.
- Adjust the trade plan accordingly based on changing market conditions and new information.
- Risk Management:
- Always use proper risk management techniques such as position sizing, stop-loss orders, and diversification.
- Avoid overleveraging and be prepared to exit trades if they do not perform as expected.
Remember, trading involves risk, and no strategy can guarantee profits. It’s essential to stay disciplined, stick to your trading plan, and continuously evaluate and adapt your approach based on market dynamics.