"Market Force-Live" How I trade the E-Mini S&P500

By Mohan

I want to share with you some of my exact methods used in Live trading and some of the indicators I use.

First, I take all the bias analysis from the Daily Directional Forecast and we look to follow the general idea of what is presented there. For example, if the Forecast suggests, "Market will push higher early in the session, hang up near the highs for sometime and then pullback mid session" I will attempt to follow that.

The first step is to see if we get favorable readings on the Breadth and High 5 to coincide with the Directional Forecast for that day.

The Breadth consists of TICKs, TRIN and the A/D line. The High 5 indicators are outlined on our website under "High 5" which are mainly Dow, Nasdaq, MER, as well as Key stocks and indexes such as BKX, SOX, and Russell 2000. (see my special update report for more information)

I want to first look at the Opening Range and see where that comes in and then start seeing how the tape (Breadth and High 5) stack up.

Are there any Gap Openings? Are we starting out with Mega Bullish A/D line and TRIN? Can these peak out and fade today or is it going to be a one way street? Does that coincide with my Day to Day Sequencing Pattern readings for the day? Questions like these make up the first 5-20 minutes of analysis.

In addition to my proprietary (and secret) MFO (Market Force Oscillator) readings I use several important indicators. These include Stochastics, DMI/ADX (14 per.) as well as MACD/Histogram readings (12,26,9 standard).

I still use the Trailblazer method shown on the site but have changed the readings (which serve as a back up to my MFO's) to a 6 minute chart with 4 and 9 period SMA's. The approach shown on the site still works also and can be stacked up on a chart next to the 6 minute one described above. I am also running some proprietary de-trended studies on those charts which assist me in determining exhaustion points on both drops and rallies.

Remember, you can have the slickest indicators running in the world but every day it is going to be your skill, speed, system, and guts that are going to get you the winning trades. In addition to that you need to have a way to get extremely precision support/resistance numbers working and those who have watched our Market Force-Live service have seen that I have a good handle on those.

Once the market gets going, I then start looking to determine which side of the bias we are going to work first running into the end of Hour One. I can often determine this pre market by just knowing the underlying Market Force Readings. I share these with you each day and try to give some indication of which Hour One pivot I expect to get hit first. We then need to determine if we are going to "Buy or Sell the Breakout or Breakdown"....which is easier said than done.

In intraday trading the S&P500 the first business is to survive and not lose. That may not sound very sexy or "positive thinking oriented" but it is reality based. Then I do my best to have the first trade a winner. Sometimes my first 2 trades are losers and we may be down 3-5 points in the first hour, so then we have to stay positive and go to work to get our points back and more.

If the market sets up right and we can catch an Hour One BreakOut or BreakDown on a predominantly Bullish or Bearish day, then I will try and hooold long or short into a well formed channel. However, these days are rare and the "easy money" is found in the intrday scalps of 3-5 points off of key inflexion points that bounce to resistance or drop to support.

These trades move quickly and a quick 5 points can turn into a +1.00 or even a loss trade so fast it will make your head swim, as many of you know who are subscribers to my Live service.

But that is the game we play in intrday trading the S&P500 Emini. It is the most liquid market and one of the largest. It is the "fastest game in town" and a decent way to stack up a steady stream of points if you know what you are doing.

I reseach and work to hone my skills more and more each day. The market regularly goes through these oddball, underlying bias changes that constantly "throw water" on established systems. A trader has to be flexible and at the same time know HOW to adapt and change. It is not enough to just say,"be flexible or adapt"...you have to know how to do just that.

I look forward to having you as a regular subscriber as we decipher the markets each day and stay actively involved in "the fastest game in town"....trading the E Mini S&P500!

All the best of success.
Mohan

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