ICT Mentorship Core Content - Month 10 - Index Futures - Basics & Opening Range Concept
Introduction
In this video, the speaker discusses index trading and futures index trading. The focus is on the e-mini S&P for the introduction.
Index Trading Basics
- View everything discussed as it relates to index Futures in light of a paper trade only.
- The trade symbol for the e-mini S&P is ES, and the contract delivery months are March (H), June (M), September (U), and December (Z).
- The primary trading session is from 9:30 am to 4 pm New York time.
- The amount per tick is $12.50, and one quarter of one point equals one tick. Four ticks make one point or $50 per one point.
- Leverage is seen by $50 times the S&P 500 Index at the time of this day's close of this recording, which is about $122,000 leveraged.
Spoos Opening Range Concept
In this section, we learn about spoos opening range concept.
Spoos Opening Range Concept
- Spoos refer to S&P 500 trading.
- The highest volume for S&P trading occurs between 9:30 am and 10 am New York time.
- True day for spoos is viewed as 9:30 am to 4 pm New York time.
- The opening range lasts from 9:30 am to 10:30 am New York time and tends to create the spoos market high or low of the day.
- Every chart shown here is in central time, which is an hour earlier than New York time.
- The opening range high and low inside the opening range can be used to identify a return back to a Polish order block or a double shorter block and rally.
- An extended range generally means that we'll look for the higher the low to be violated later in the day.
Examples
In this section, we see examples of spoos opening range concepts.
Example 1
- This example shows a 15-minute candlestick chart of the S&P 500 e-mini September contract 2017.
- The highest volume occurs during the opening range from 9:30 am to 10:30 am New York time.
- We can look at the opening range and see that it returns back inside of the previous up close candle or bush order block.
Example 2
- This example shows a five-minute chart of the S&P 500 e-mini September contract 2017 on a different day.
- The highest volume occurs during the opening range from 9:30 am to 10:30 am New York time.
- An extended range generally means that we'll look for the higher or lower end of the opening range to be violated later in the day.
Trading Indices with Opening Range
In this section, the speaker discusses trading indices using the opening range. He talks about how to use the opening range to identify reference points and support/resistance levels.
Using the Opening Range for NASDAQ and Enqueue
- The opening range for NASDAQ and Enqueue is from 9:30 AM to 10:30 AM New York time.
- Look for reference points inside the opening range, including a rejection block just below it.
- The last up-close candle inside the opening range can be used as a facilitation of a short.
Using the Opening Range for Dow Mini Future
- The opening range for Dow Mini Future is from 9:30 AM to 10:30 AM New York time.
- Look for reference points inside the opening range, including a rejection block with the lowest close down closed candle.
- The first 30 minutes of trading typically has the largest volume of the day and creates usually higher low of the day.
Volume Precedes Price
- If making a lower low or retesting an old low or old high, it should be seen with higher volume.
- If not seen with higher volume, that means volume is preceding price in that it's not as strong as otherwise would look.
Blending Indices Together
- Blend indices together to get stronger signals directional bias.
Support/Resistance Levels
- The opening range will give us support/resistance levels that would be going over other traders' heads.
Trading the AM Trend
- When we have the opening range idea defined and we have bias and institutional order flow, the opening range will give us otherwise support resistance levels that would be going over other Traders heads they wouldn't even be aware of it.