ICT Mentorship Core Content - Month 10 - Index Futures - Basics & Opening Range Concept

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.
Video description

2017 Premium ICT Mentorship Core Content Video Lectures Audio and visuals are exactly as they were distributed in June 2017. CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN Trading performance displayed herein is hypothetical. Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance trading results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results. U.S. Government Required Disclaimer – Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results. Trade at your own risk. The information provided here is of the nature of a general comment only and neither purports nor intends to be, specific trading advice. It has been prepared without regard to any particular person’s investment objectives, financial situation and particular needs. Information should not be considered as an offer or enticement to buy, sell or trade. You should seek appropriate advice from your broker, or licensed investment advisor, before taking any action. Past performance does not guarantee future results. Simulated performance results contain inherent limitations. Unlike actual performance records the results may under or over compensate for such factors such as lack of liquidity. No representation is being made that any account will or is likely to achieve profits or losses to those shown. The risk of loss in trading can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. If you purchase or sell Equities, Futures, Currencies or Options you may sustain a total loss of the initial margin funds and any additional funds that you deposit with your broker to establish or maintain your position. If the market moves against your position, you may be called upon by your broker to deposit a substantial amount of additional margin funds, on short notice in order to maintain your position. If you do not provide the required funds within the prescribed time, your position may be liquidated at a loss, and you may be liable for any resulting deficit in your account. Under certain market conditions, you may find it difficult or impossible to liquidate a position. This can occur, for example, when the market makes a “limit move.” The placement of contingent orders by you, such as a “stop-loss” or “stop-limit” order, will not necessarily limit your losses to the intended amounts, since market conditions may make it impossible to execute such orders.