Pivot Points for Trading Levels |John McNichol | 4-13-20 | Trading Futures
Good. Morning, everyone john McNichol, here and welcome. To trading, futures do. Appreciate everyone, that is here live, as, we started another great week of education, with TD Ameritrade, do. Preciate we got Vickie, Terence. Dish. Chris. Go. VIN and everyone. Else and do appreciate those you that are listening to the archived session, as well - appreciate you joining us each and every week let's, take care of disclosures, and we'll get into our subject for today. Remember. The following presentation, is for educational purposes. Only and not a recommendation or. Endorsement, of any particular investment, or investment strategy. Past, performance, of any security or strategy, does not guarantee future results or. Success, now, in order to demonstrate the functionality of. The platform, we will be used in actual symbols keep, it in mind TD Ameritrade does not make recommendations. Or determine, suitability of any security or strategy, for individual traders any investment. Decision you make in your self-directed account, is solely, your, responsibility now. Futures and futures options trading, is speculative, and is not suitable for all investors please, read the risk disclosure for. Futures and options that link is provided for you on the bottom of the page and futures. And futures options, trading, services, are provided, by TD Ameritrade, futures. And Forex, LLC. Those, trade and privileges, are subject, to review and approval not all clients will qualify. As. Well spread straddles, or the multi leg option strategies, along with options, not, suitable for all investors as, a special, risk inherent to, those instruments I carefully, read the previous about a copy of characteristics. And risks of standardized, options, now. We have a demo account for our practice trades, it looks like a real account but it is not you, have the ability to practice what you learn here today with, paper money that software. Is paper. Money software, application, is for educational. Purposes and, successful. Virtual training during one time period does not guarantee successful. Investing, of actual funds there's, a later time period as market conditions change, continuously. Alright. Let's, go ahead and. Talk about our discussion here for today, once, again do appreciate all you that are joining us here today. Let's. Try and get a few things configured, here. There. With me just one sec there we go now, you can see with my semi. Smiling, face this, morning, what, we're gonna discuss, we're, gonna use, some, of the technicals, today. Introduce. Or reintroduce for, some of you pivot. Points, which. Are a technical. Indicator, that. Plots, potential. Support, in resistance, areas based, off of previous. Price action whether based off of a previous, day previous. Week some, traders can even go back to the past month, we'll, go ahead and show you on how we, can bring. Them up on the chart as well as how some traders may potentially utilize them we'll also look at our past trades, from. Previous. Weeks our, spread trade that we did last, week on, wheat, and, we'll. Follow, up on crude. As well now if you have any questions feel free to utilize the chat I'll do my best to, answer those questions for you and so. Without further adieu let's go to the platform and. Bring. It up by. The way if you like, to follow, me there's my twitter handle on the screen. At. J, McNichol. Underscore. TDA also, if you like joining. Us not only for these sessions but our other sessions, on this, youtube channel it is trader Talks make. Sure you click Subscribe and also click like for. Any content, that you see there. All. Right so we're, gonna focus on, the. SMP. Futures this morning. More. Specifically, we'll. We'll. Take a look at, /e. S which, is the micro future. Before. I start off that with that bringing. Up the SNP. Cash, index and, we'll move into. That just kind of get a an overview.
Technically, On how we are starting off the week, we've. Talked about this over previous, sessions, as, well. On. The S&P cash index. Going. From the high, down. To the low of the bear market, we. Had a strong. Bounce. Where. Markets came up about 25% off of those lows but. Notice we have, some. Lines on the chart, these, are Fibonacci. Retracement. Levels. Drawing. That Fibonacci, retracement. One. Can do the same thing by just going to your drawing tools and. Under. Drawing tools find that percentage, tool, there's. Percentage, tool. I'll, go ahead and I'll redraw, this. And. What. One would do with draw, with, the, trend. So, we're drawing from. High, to, low in, this example. Then. You'll see these various. Percentages. Appear. On the screen. Now. In in a previous. Previous. Week, or, I should say actually two weeks ago. Price. Action, had. Consolidated. Around. The, 38 percent level we. Had a breakout. Last. Week, that. Breakout, was. To, the tune I believe about, 12%. Move, on the week which was a record. It. Wasn't a record move but was a 1, largest moves since I believe going back to. 1974. So, volatility. On the up as well as the downside are still. Here, now. Also made reference last. Week, around. The 50% retracement, which. Is about half of. The. Drop, in the market. We. Briefly. Penetrated. That on Friday and. As. We start, off the market today futures, were, down. Overnight. Although they did retrace, back up a bit. But at the opening on the cash index you, know we are still down a little bit, however, kind of being right around that, 27. 60, area. House. An area that kind of came in - as. Far as with some. Of the observations, is going down to some. Of the the, multi-year, lows. Previously. As. Far as support, potentially. Acting, as resistance. For. A reversal. The marking this is kind of the argument, as. You kind of think of the psychology. On how, people may perceive the market, there. Is the the, v-bottom, argument. Where. Is that the, market, is gonna. Form a V, meaning. That, this. Sell-off. Was. Too. Fast too quick and. Also. With, the Fed, and government. Attempting. To pull out all the stops would. Translate, into a V and potentially. Retest, those, highs that, would be the bullish case. The. Bearish case as with, typical. Bear markets, can. Have a strong rally, and. Those. Bears are looking for resistance, whether. We're, coming. Close to that or near that now. You. Know with this example of an intermediate, moving average I have, a 55 period, moving average still. Acting as resistance. So. Some traders maybe keep an eye on there look for any, failure, and based. Off of fib, projections. You. Have this 61 point 8 level. Now. That's sixty one point eight level kind. Of interesting, on when. You look at this price, channel right, here. This. Price channel was the actual, previous, market channel they. Go back a little bit. Here's. A weekly, chart you can kind of see how that bull market, was. Move, and move and move in doing, just fine in fact more, than just fine it actually kind of broke out on the upside of its range there they. Then got slammed right back down.
Briefly. Held going, in the end of March and then the bottom drop down. So. As, we look at it going into this week and look at some levels notice that sixty one point eight level. You. Know a bit of a confluence, with. Some of the weekly averages, and kind of that, previous. Channel. Broken. Support, may have a tendency of acting as new, resistance, now you. Know at that point you know we're talking you, know still moves. Of about 200, points two, hundred about three hundred points about three thousand. Would. Be that area, now I'm not saying that that would hit this week but, we can see that there have been some pretty big ranges, in. The market on, a week, to week basis. Last. Week and and, this also should. Help you. Understand. And address risk, whether to the upside, or the downside, so. I put my cursor on some of these previous, weeks last. Week the range if, you look at the R value. The. R value up at the top here. 244. Points last week. Previous. 193. Coming. Off that low week 445. 262. 400. K, so easily, 250. To 400, points now. How has that tie. Up when it comes to the, future as well on, the S&P, futures. If. One is trying. To trade, those, price levels. I'm. Gonna switch to a daily chart you, know we have the multiplier. For. Ford /es, that. Multiplier, is going. To be $50. $12.50. Per tick that's $50, per point. So. We do the math. 50. Times. I'll. Just do even, just do it on the lower end. 50. Times. 250. That's. 1200. Make. Sure he did that right. 50. Times. 250. That's. $12,500. On one contract. Significant. I. However. If we look at another contract, /m. Es this, is the Micro. Contract. May. Be more suitable for, some, traders with smaller accounts. Or. Hedging. Potentially. Smaller accounts as well. Notice. The multiplier here is a buck, 25, a. Buck. 25. Per. Tick so that's a $5, multiplier. So. We do 5 times. 250. That's. $1,250. We. Multiply it by that $400. Range 400. Times. 5. Mm. So. Even significant. For, a relatively. Smaller contract. So. One needs to understand, that. Volatility, and those ranges. Before. They trade one. Other aspect is. You. Know some of the you, may utilize tools, such as ATR. Average. True, Range. That's. An indicator we have on this chart here and. Once. Again one can see kind, of reference, points on what daily, ranges. Were in the past last, summer is at 30 points. Now. It is at. 80. Our values 148. We're. Talking about five, times, the volatility, we saw last summer. And. When, one takes risk one needs to incorporate that, that basically. Means that whether a one. May not be trading, as many, contracts. As they, may have in the past. Or. Two, based. Off their time for risk may not even be trading, at all, based. Off of that leverage, now. Fortunately I have tools such as paper money account. To practice, these trades and you, can determine the suitability, for. Yourself, but, understand. Where, the, current market conditions are at, okay. Do. Apologize if anyone's, have any streaming. Issues I, believe everything, should. Be going. Out okay, I'm not notice anything wrong on, my end but. We'll we'll, keep monitoring, that thanks. For the heads up Viki. Alright. So how, does that kind of tie in with our tool, today. Look. At at pivot. Points so. With. Pivot points are is. They. Are a tool that, some traders. May utilize to identify, support, and resistance. Intraday. So. This is a tool, that some, very active traders, may utilize. Now. By the way with, this chart I have this, is an example of a grid chart I, have, an example of a. Daily. Chart and. Over. Here an example of an intraday chart looking at 5-minute, bars. Now. If you uh if you want to utilize a, chart like this I did share. The. Grid code, there. However. This is optimized, for a lighter, background those, you with a darker background you probably change some colors to. Get it. Looking. Optically. Pleasurable. To you. But. To do that you just go to setup open, shared item, if. You want to follow along and, you, type in that script. You don't actually you, type in the seven digit code it is case sensitive, so for. Example, it's a lowercase H capital. T. Capital D, there's. A shout-out for TD Ameritrade, capital. S capital G, capital, H and, capital. B, when. You hit preview, if. You typed it in right should. Load up something like this and. You, click open and. That. Grid will. Open somewhere on. Your desktop. And. From. Here you know if you wanted to change the colors, you. Know you can just go ahead and right-click on the chart and go. To things such as style or, settings. Like I said just configured, more for a lighter background. And. If. You wanted to save it right. Where, it says in this example future, shared grid I, can. Click on the. Little square, boxes, which is where you can go ahead and customize and, create your own grids and. Select. Save. Grid as. And. Once you do that you go ahead and rename it call whatever you'd like.
And. Then that way in the future when, you're on your charts you just go up to the little square. Box or, multiple square boxes, and, any. Grids, that you've created should, be listed here all. Right. All. Right so we talked a little bit about you. Know on the daily charts you. Know rallying, up you know some potential resistance we'll see if that momentum continues. So. Far at, least going back to the, March. You. Know it has been more bullish sentiment, on on. Quote, buying the dips on every, pullback there we'll. See if this continues. But. Let's look at it from a little more of a smaller period of time so I'm gonna go this 5-minute chart I'm going to right clicking we're gonna maximize, it and, if. You do have this grid, that. I shared with you these, indicators, are already on it if. You. Wish to create these your self. Very. Easy to do we. Can go to studies. Edit. Studies. Or. If you see the beaker, icon, on the chart you click on that and so. I have two. Examples. Of, pivot points on there we'll show you how to add them and we'll learn more of what they do. To. Go ahead and add them you, just go over to the indicators over on the left and start typing in pivot. There's. A few variations of, these, indicators, we're, gonna focus on the the, default. In. The program which, is pivot points there, is a question, mark if I go and click on the question mark so. Where we can learn more about what this indicator, does. There. We go. And. Here it is pivot points a. Studies. Whose purposes, provide three key support, and resistance, levels used in daily weekly or monthly timeframes. Our. Example, we're utilizing. Daily. And weekly. If. You scroll down, it. Actually gives. You how. These. Calculations, are formed. If. You want to learn more details you can go ahead and click on more details that'll, take you to the Learning, Center part, of our education, tab. Education. To get that mouse out of the way education. Learning. Center all things.
Thinkorswim Are, available. Under the Learning Center and takes you right to that. Pivot. Point indicator. And. Looking. At some of the calculations. Now. What what, the calculation, does is it looks at a previous, period, of time, looks. At the ranges, and it comes up on what's referred to as a, pivot. Point I kind, of think of the pivot point possibly. Is kind of a bit, of a. Sentiment. Area. There. If. The price is above the pivot point. Incline. To be in more bullish meaning that prices, are more, in the higher of, its average range, where. If it's below the. Pivot points more, in the lower area. Of the range so above. The pivot, will. Plot areas, of potential resistance, and. Below. The pivot potential, areas of support. Now. Remember support and resistance, is interchangeable. As well take a look when we look at the charts as. We. Will go back to the chart I have. Two of the pivots on. Here right now now it may I. Try. And make them a little bit thicker to. Help with the presentation, let. Me go ahead and. Close this up a little bit and. Let's bring up /m. Es. Now. I already customized, this. As. Far as with colors. Let's. First, start off with the purple. Color. That's on the chart that, purple, color represents. The daily. Pivot. D. For daily. Now. That's kind of the default, setting. For. The. Daily pivot you can change these colors however you'd like and then. You'll notice you know above that daily pivot at, least on the thinner line, representing. Some, potential resistance levels, and, below. The. Pivot, representing. Some potential support. Now. In gold. Which. I had customized, gold. Represents. The. Weekly. Pivot. So. On the ranges for the weekly it's looking at the previous, five days of five trading days previous, week and plotting. Those ranges, whereas, the daily pivot is just looking at the previous, trading. Day and coming, up with those levels. So. This kind of a way that some traders may utilize for, multiple. Timeframes. Ricardo. Opted to do a little more research on that indicator. Brief. She hates the feedback. If, I go ahead and take a look, currently. On. Price action now those, you that may not be is familiar with this chart, notice, there is a shaded, area and there's, a lighted area the shaded area is the. Overnight. Whereas. The later area, represents. The. Regular trading hours. So. As we kind of go into today. We. Can see where we're at currently. So. Let's look at it for at least just based off of, price. Action just, going into this week, notice, in the purple. Line, this. Is the daily pivot, now. Overnight. Sunday. Night you know prices it opened a bit higher but, then traded, lower actually, going below, that, pivot point now. Interesting notice how that pivot point did act as some resistance, throughout.
The Evening and as. We came into just. Early in the pre-market, went. Ahead and, attempted. To trade above, that area acting. As support now. If one was bullish. One. May be inclined, to, look, for. Trades. As prices, may break above the pivot. Or. Bounce. Off. The pivot just think about standard. Breakouts. And bounces. If. They're reclined to being more bearish they may be looking for breaks. Below. The pivot as well. As retests. Of those, pivots. Now. What are potential targets potential. Targets could be that next. Pivot. Level. In this case going from the, pivot down. To the. In this example, the s1 level which. You know currently at least from, the open the market over the last, 2030 minutes. Looks, like that that is kind of the current set up there. Now. Likewise if. Prices continue. To trade. Through, and. We look at some previous areas. We'll. Go back to let's say last Wednesday. You. Know here's an example of that, pivot point again. Thinking that more. Bearish. Bias being. Below that. Pivot, more. Bullish bias being, above it. Some. Traders may use moving averages as well you know to support you, know some of these trends but, pivots. Are looking. At more ranges. And. Are. Typically more suitable, for some of those range bound days although. On trending. Days when, prices are making those higher highs higher lows or, lower highs lower lows you. Know may look for. Targets, as well as. Those. Prices are trading. Now. Vicky says for those you use in toss does the volume indicator on, trade, screen appear to be working. I'm. Not sure if anyone else is having issues with the volume there, sometimes. We have someone on the chat I'm not sure I'll be able in on the chat here today, but, also as I'm looking at the chat there is a link to a survey so you, have an opportunity to provide some feedback today, so if you do have an opportunity to. Click on that link would. Love to hear from you.
But, As far as the volume on the futures looks, like the. Volume seems to be coming through fine. I'm. Not sure if that's the same for the equities. So. Let's. Go back here. Again. We're looking at Wednesday. And. Again. Example, of. Price. Breaking down below the pivot and if one was bearish. This. May end up being more of a losing. Trade as prices, snapping. Back up and getting back above that pivot, we're, we had a break up in a bounce and then, notice kind of trading, in between, some, of these ranges. Now. One, of the drawbacks with. Pivots, and, we've. Been seeing this a lot based, off of how strong, the market, has moved is, when. There, is a strong, trend and we had one of the strongest up, moves in the market since 1974. Notice. How prices. Can. Basically, just blow outside. Of. These pivots. This. Is what happened on Monday, when. This thing started. The other drawback, with pivots is when. You do have those. Long range days notice. How the next, day and, potentially. The next week the. Bands will expand, so, they'll expand, and contract based. Off of previous. News. Likewise. Notice as we got into midweek they, kind of came. In a little bit better. And then. As you, know volatility. Or, ranges. May be smaller you, can see these ranges, kind of come back in but, it does give you a little idea of bias as we look at the pivots you know here's the weekly pivot. Prices. Above it here's a weekly pip prices, above it prices, above it prices, above it, so. Some, traders whether they trade them or not you may utilize them, as an indicator and so as we go into this week here's, our weekly pivot, at about, 26. And 90. So. Some traders maybe keep an eye on this as far as support, on any, type, of pullback, whether, today, or, throughout. The week seeing, if that weekly, pivot holds if the, weekly pivot does not hold that could, be a sign of more of a short-term, reversal. Okay. All. Right all right now let's talk a little bit about if. One, wanted to let's. Say place. A trade based. Off of what, the. Pivots are doing. I. Let's. See if we can apply this one. Tool we can go to the active trader tool. Which. Is over here on the right. If. I click on 84, active trader you'll, see that there is a, Buy, and, a sell button, there's, also. An. Area here where we can put in quantities, and, then. There's even a template, on setting up a specific type of order kind of similar to the order templates, that are in, the. Trade tab and. So. For example here I'm. Going to utilize a. A. First. Or a trigger, with, bracket. What. That'll enable us to do is if we were to place a trade it, gives us the ability of. Having. An exit. At. A desired, outcome so, if we're looking at this bearishly, let's, say trading down with that pivot that. Would be a desired outcome whereas. If we were to put in a stop which, stops are not guaranteed to fill a particular price. But. We can put in an exit, on the opposite. Side. So. What. We'll do is we'll work with one contract, now, notice there's an offset, here of. A certain number of points. Now. What one can do is they can specify the number of points up or down. That. They're willing to risk their target, we'll. Just put a wider range on here. And. Then we'll go ahead and we'll adjust it. Afterwards. Now. If I go ahead and click. For, instance cell. Assuming. That we're, selling. Or trading that price down now. We're a little late to the game on this as we got the bounce about 20. Minutes ago I'm going to use this for illustrative, purposes. We. Can click sell to short this contract.
And. Looks like it lost my template there that, was unsettling. Let's try that again oh there, it is. We're. Doing trigger with bracket, again. I'm gonna offset this by about 20 points. Sorry. For the little truncation, there a. Little. Bit better on your screen but since I have two larger fonts it. Kind of sticks out a little bit. Good Ken's with us on the chat so appreciate, it Kent. I'm. Assuming that is an actual indicator, Ricardo, maybe, I'll take a look at that in, the reversal. And break out. Strategies. Later on if it's not too complicated. Alright, so we went ahead and we have, our, bracket here and if. I click on cell that'll create an order now one thing to keep in mind there is a check box here that says auto sent if, someone was very active and they wanted that water to go out right away they. Can check that auto send and that would not, bring up the confirm, and send which. Many. Traders may wish to see that. So. I'm gonna go ahead and hit, sell without the confirm and send it's going to bring up that order. We, can also go ahead and edit this. Order, as well. Now. One, of the orders that someone may use is. Utilizing. A, limit. Order. Or. A stop, order to get into. The. Trade. Now. In this case if we're looking for let's say a resistance, bounce. Based, off of what the pivot point is then. A trader, may go ahead and set that they'll wish, to sell. If. The price. Comes. Within a certain, point. Of that, pivot area in this, case it's twenty, seven sixty five sixty, seven, some. Traders may look for it to hit within a couple of ticks so, let's say we're looking to come within about two. Ticks of, twenty. Seven 65, 67, that. Would actually be pretty close to about twenty. Seven sixty five. So. With that order. To. Make this a limit. Leave. It as a day. 2665. Correction. 27. 65. I'm doing this a little academically. That, if, we were looking at this. After. The price had broken down below, the pivot looking. Forward to retest, and bounce off of that you know which it did, over.
The Next two 5-minute bars. If, the price basically, hits that level 27. And. Hits that price. Or. Better it'll. Go ahead and trigger that. Limit order. Likewise. On the opposite, one. Can have a limit. To target the downside, as well. As a limit, on the upside now one of the considerations on, the upside is, potentially. Setting a stop that's a certain amount above. That. Level. One. Thing to utilize is potentially, looking at the. ATR, which. Represents, Average True Range. Set. At a certain, number of points, now, if volatility is higher those. Stops are going to be wider, if. Volatility, is smaller those stops may be smaller. So. Let's say in this example, utilize. In a two. ATR. Two. ATR, would represent in this example about. 13. Points if I'm looking at that right. That's. Actually a bit wider now but earlier. Looks, like it was somewhere around. Let's. Take a look at that. Early. Going in the opening it was somewhere at around five. And a half. So. Let's look at it from a standpoint of. Times. Two that, would be eleven and consider. Rounding, up you. Know adding an extra tick that, would widen, the. The stop, but. It'll also, force. You to buy. Or, sell less, contracts, and we're only doing one for our example. So. In this example that would put a stop that would be about. Let's. See we'll do about eleven points, sixty-five. Do. It approximately. Above. There that's where that potential, stop would be and then the target being. That. Next pivot point. Now. To fully construct, this. If. You're doing and the prices away, from that, you. Know I can go ahead and just hit. On this. One. Confirm. And send and. Send. And will happen is notice that all the orders basically, went on the chart now, the sell order hasn't triggered, because the price hasn't traded. Up to that level. We're. Put in a limit, limit. Orders are, put in on. The. Short side or put in above, the market because, we're looking to sell at that price or better now. Notice here's your stop. Order and here's your limit order now what's cool on the platform, is I can slide, this. Limit order right. Down to that pivot point. And. Basically. Cancel, and replace it right on the screen. Likewise. I can also go ahead and confirm, the. Stop order as well. Now. Let's say just for academic purposes, I'm. Gonna go ahead and drag. This limit order you, know down to the current price and just, initiate, that short position. Let's. See if it fills. So. I'm just a little bit above it. So. I can just kind of slide in, there. Just. So we can show how it gets filled, so. There we go we got a fill and. Right. Now we're, in a short position. Now. Notice that also adjusted, to stop - now, in this example. We. Have a stop that's just above that pivot, I. You. Can go ahead and. Right. Click to cancel, into place if. You want to see that level so that's at 27. 6750. So. It's just a couple of points above that pivot. And so if the price does go and go, above that pivot then this trade, would be stopped out if, the price goes ahead and trades down and hits. That. Support. Area then. That, would be a game. Now. Based off of the fill being at. 2747. With. A stop. Put. My cursor on it at. 2767. That's. About 20 points so. What's the risk on that 20. Points. 20. Points times the multiplier. Times. 5, in this case 4 /m, es, that's. Risking $100. Now. Let's assume when we get filled at that price. Prices. Can move pretty quick but. We'll. See. What the outcome of that is if, it trades down. To. The pivot. Area you, know that pivot area is at. Or. A current order is let's, try that again. And. Get a few lines here that are just giving. Me a little hiccup.
Here Let's see we can get rid of that. So. Currently that, limit. Order to buy it back is at 27. 2250. Which. Is about. 25. Points. Below. Where, we're at so that's kind of a one-to-one. Reward. The risk which, would make sense since we entered right in the middle of the range versus. Looking, for that bearish, bounce but, one at least get an example, of enter. In that type, of order for you. Now. If neither, condition, is met, at. The end of the day I mean it doesn't stop out or, doesn't, do the limit now. A trader. Can and. Let's. Actually go back and look at this order right click. Do. A cancel, and replace. Notice. These stops were. Actually, day orders now if you wanted them to continue. Pass, the session, you, can make these, GTC. Right-click. On the order cancel and replace. GTC. Even. Though prices will settle daily, they. Will continue, to trade. Otherwise. If. Neither. Condition, is met one. Can basically cancel. Your. Orders and. Just. Close it out now the kind of cool tool on the platform, is on the active trader you do have a flatten, tool, what, that means is I, if. You go, towards the end of the day and you want to close out the position if you click flatten that. Would close out the position and cancel any existing, orders. So. If you learn something a little new today so. We'll see how that plays out. Not, an. Ideal. Entry. As. Far as trading, off of these levels user, traders are looking to try and capture as the bounce occurs, off. Of that level. Another, one to follow up if you want to practice is, and this. Would be a hypothetical. If. Prices were to take out, the. Lows. On, the. Day. Which. Is pretty much around where the target is right now. Then. You had that weekly pivot. Possibly. With the your. Paper money is practice. A bracket, order if, the price breaks or, if it bounces. Below. A pivot. Point and. Then. Target that next level in this case being that weekly, pivot which. Made, reference at the B in the session is that, 2681. That's. Currently about. What. About 50. About. 70, points, below. Where we are right now and. We, can see how quickly. Prices. Can move heck. On Sunday. Night just kind of points that volatility. We. Had about a 4 eight-point. Range almost, a 50 point range in the first five minutes last. Night, so. Volatility, still here doesn't. Mean you can't practice with, it but. It is not suitable, for everyone. Keith. Says could you set a clothes on the market, clothes, you, could potentially. Put in an order for that. I. However. The the way, it would be. The. Way it would work I mean currently. Did. I actually, demand. That change that. Make. Sure he's both say GTC, I don't know I must. Have missed some foul this. Is an O CO group that's why I was rejected, and missed that so, I have to go back and cancel, and, replace. The Osio group easiest, way of doing it is just a cancel the group and resubmitted, it. What. I'm gonna end up doing is just click and flat if, none of them are hit at the end of the day. I. If. You want you can do the, duplicate. Turo, Co let's, see if I can actually make. That. It. Doesn't seem to work, right there as. Far as the orders as far as submitting. You. Could put, in a conditional, order to submit it at a particular time. And, this is goes to the question as far as. Can. You set it to close on the market, close that. Would be submitting, that at a particular time, you can set in a. Market. Order, at. That specified, time and. That. Would be a conditional. Order. That's. One way of doing that. There's. Conditions you, can submit it at a different time I haven't. Done that with. These, particular trades. Weather. Just left them as GTC, or just, went flat at. The end of the day ensuring, that all, open. Orders were actually, closed out. All. Right so that's where we're at so, what, we did today we went ahead and spent some time, looking. At, well. One as far as the overall market, seeing, where the bias is as we start off after. A strong, week. Last week kind. Of trading, up to. That fifty, percent, around. That fifty percent to to a sixty one percent retracement. That's. Kind of a psychological, area. To. Kind of see if we're potentially, setting up for.
A Bearish, bounce and. Look for a retest. Or at least to, go down towards. Some, of the previous lows or, if we're looking at more of a V which. We be predicated, by breaking. Through, some of these key levels, to the upside. Still. Be determined. Markets. Are very volatile, there is risk to the upside, as well, as there is to the downside, hopefully. We demonstrated, that clearly to you today, by. Referencing. Those, point values, on the, SP futures even though the micro is, much. Less it's ten times less than, the, SP. Many future, with the the. SP mini future has a fifty, dollar multiplier, the, meas, forward slash mes has a five dollar multiplier, there, still is risk we can see how these markets can move hundreds. Of points in a given day even, move dozens. Fifty, points in a matter of minutes, so, make sure you understand, what you do before you trade and certainly, consider, practicing. As we did here today we. Went in utilize those pivot points to identify. Potential. Areas, of support and resistance intraday. And how, one can possibly trade. Those, levels, of support and resistance it's. Essentially swing trading on a very. Relatively. Smaller, period. And. We'd encourage you to practice what you learn here today oh but, first and. I know I went over time. Real. Quick. On. Our previous trades. On. Our grain trade on zlw that. One is moderately. Up as. We have the the. Long put vertical. Selling. To 525. We're. At 558. So. Still, staying above that level. Crude. Crude. Still negative. We. We got three days for. Crew to get above $30, stranger. Things have happened but. Not likely with some of the deals they. Did have the cut but. We're sitting at around 23. Dollars. On crude. Nice, thing is we did position, size to a maximum, loss so, we can see our maximum, loss right, there well. Again we'll follow up on some more trades next week Thank. You Vicki thanks, for Kent for being with us and remember folks in order to demonstrate the functionality of the platform, we, had to use actual symbols, keeping in mind TD Ameritrade does not make recommendations. Or, determine, suitability of, any security or strategy, for individual, traders any investment. Decision you make and your self-directed account, is solely, your, responsibility so. Stand by at the top of the hour we have Cameron, Mae with getting started with technical, analysis. So, stay tuned bye. Now.
2020-04-16 20:53
