Trader Rick walks you thru two chart examples of where it is important to monitor volume. One is when volume surges after a lengthy move and the other is when price breaks out and is accompanied by volume. An ES chart is used to illustrate these two volume examples so don’t miss it.

Don’t forget Thursday is rollover day in the index futures (currencies too). Monitor volume to see when the volume moves from the March contract to the June contract, probably early afternoon. Trade the March contract until the volume shifts to the June contract.

Remember, if you trade a volume chart, you are taking in to account volume which is a leading indicator along with price. Do you the know the difference between a tick chart and a volume chart?

Good trading!

The EUR/USD pair weekly chart put in yet another doji. If price rallies in to the sell zone look for a shorting opportunity. If price does not rally, see what Trader Rick is looking for to the downside. Take a look at the 60 minute chart too if you trade this market to see if we got a buying opportunity in the overnight US market.

Trader Rick talks about a possible pattern forming on the weekly Canada chart. Does it normally lead to higher or lower prices?

Take a look at the 1800 tick yen chart which has a high probability short setup. Very clean trade and illustrates the importance of trade selection. This setup was confirmed by not only the 3x timeframe but also the 9x timeframe.

Note where underlying support comes in on the 60 minute crude chart. This could be a key support in the near term.

Trader Rick analyzes the YM, ER and the ES charts. While the ER is making new recent highs, the YM and ES is thus far not confirming, creating a divergence. If you are a trader who likes to take countertrend trades, be sure to look at the 60 minute ES chart. This could save you a lot of money by staying out a strong momentum market. Ok, what was the ideal timeframe to have been watching last Friday in the ES? It is at the end of the video update.

Good trading!

Next up is a clean setup on the 4500 volume euro chart. See how this sell was confirmed resulting in a solid move to the downside. Good example of a slingshot.

Moving to the stock indexes, compare the weekly ER chart and the ES weekly chart. Divergence! Will the ES follow thru and make new highs or will we get a lower high? The ER may be forming a 1-2-3 pattern. Take a look at the 2 bar per day ES chart and note where significant resistance may be forming.

Good Trading!

Trader Rick shows the MACD indicator on the weekly gold chart. First MACD setup corresponded to a quality 9/30 long back in early 2009. Note how momentum zeroed out while price was forming a triangle.

Next up is the EUR/USD pair weekly chart. Good example of momentum waning as price moved higher. This past week was the third week of hesitation, market contraction. Watch for a shorting opportunity if price rallies in to the sell zone.

The 60 minute Canada chart has a possible inverted H&S pattern but see what Trader Rick does not like about the pattern. Price may also be forming a slingshot.

Trader Rick analyzes the crude monthly chart with the MACD indicator. Remember, momentum leads price. The daily chart in crude has a possible ab=cd pattern to watch.

Remember, the 10 yr notes and 30 year bonds have rolled to the June contract. Price on Friday triggered a 9/30 short on the daily bond chart. Price is in the sell zone on the MACD indicator too.

For the stock indexes, first chart up is the S&P cash monthly chart. The MACD indicator analyzes what to expect next. The yearly pivot is taken in to consideration here.

Several traders have asked Trader Rick to review some of his trades so the two trades Trader Rick took on Friday are reviewed in the video update. There was an ES long entered at 1096.75 for a long scalp and there was a May bean 9/30 long setup on the 1575 volume chart. Both were confirmed by other timeframes.

Good trading!

Trader Rick discusses the weekly EUR/USD forex pair where we may finish this week with another doji. What follows several weeks of contraction? At some point, expansion.

The pattern to watch in Thursday’s trading for the stock indexes was the ab=cd pattern. Trader Rick reviews the 60 minute day session charts for the YM, ER and the ES. The ES was a perfect ab=cd. After 3 more hours of trading, price took off to the upside, closing on the highs in all 3 markets. Pays to watch the larger timeframes, both day session and all session!

Good trading!

Trader Rick next looks at the weekly EUR/USD pair where for the 2nd week in a row we had a doji. Chances are you know what that means! IF price rallies from here, look for a selling opportunity in the sell zone. The 60 minute chart shows price right at resistance but we have strong momentum currently.

Next up is the weekly gold continuation chart where price broke to the upside after an inside week. Has the abc correction completed or do we get a more complex correction…an abcde?

With the end of the month this week, take a look at the monthly euro currency chart and see what fib level price may have found support. If price moves lower then we will look for an ab=cd pattern.

The weekly Canada chart shows price in a trading range. Dragon pattern is still intact. The 60 minute chart has a bullish bias in the near term with price making a higher high and trading outside the upper keltner channel. Look for a buying opportunity IF price pulls back.

The monthly crude chart shows price in consolidation between 68 and 84. A slingshot is still a possibility but a move to the overhead .50 fib is also possible. Time will tell which direction we go.

If you trade bond futures take a look at the 60 minute day session chart. May get a 9/30 setup and/or a slingshot.

In the indexes take a look at the YM 450 tick chart that has a common pattern that may have completed well before you get this video update. Still worth seeing how it played out. The DOW weekly and daily charts are reviewed as well as the 203 minute day session ES chart. IF we get a continued rally look for the 1125 area to provide initial resistance.

Good Trading!

Next market Trader Rick reviews is the 5 minute ES globex chart. Based on the emini globex fib extension methodology, the 1.27 fib identified a possible shorting opportunity at the 1102 area in early Thursday trading. For higher probability trade setups look for other factors that also point to the same area to enter a position. In this case, Trader Rick pointed to the 14400 volume chart which showed a 1-2-3 or 3 pushes up pattern. This is an actual trade that Trader Rick took, exiting the full position at the target of the 1-2-3.

Good trading!

Trader Rick shows the inside week in gold last week on the weekly. Has the abc retracement pattern completed? Targets to the upside remain unfilled. IF prices move lower, take a look at the daily chart where we have an ab=cd pattern possibility, targeting just above the $1000/oz level.

If you trade the euro/yen pair take a look at the weekly chart which shows price breaking out of an 8 month consolidation zone. What’s next? On the EUR/USD weekly chart, price is in the fib zone with last week finishing as a doji. Note where it completed. On the daily chart, price is sitting right on the D target of the ab=cd pattern. If price moves lower look for the 1.27 fib level to provide initial support.

Next up is the 13500 volume euro chart where another ab=cd pattern is providing support. Is there a chance we may see a change of trend? What do we want to see first to confirm a change of trend?

The Canada weekly chart is up next with price in a trading zone. The dragon pattern is still intact.

Crude oil weekly is trading near support, threatening to break out of a channel.

The next chart is the 60 minute 30 year T Bond market and price closed Friday in the sell zone. Check price on Monday morning to see if a sling develops.

In the stock indexes, the NQ daily closed in the sell zone on Friday but note we closed on the high of the day, and this last leg up came after a bullish divergence, making a short a lower probability here. Trader Rick goes over the 15 minute and 2 minute ES chart for Monday’s trading.

Good trading!

The weekly gold chart indicates an abc pattern in progress with underlying support down at the $1000/oz level.  The daily chart shows a possible ab=cd pattern with the D target coming in just above the $1000/oz level.  The 60 minute day session only chart shows possible support at a higher level.

Next up is the EUR/USD pair weekly chart where price continues to move lower but is now in the .50 to .618 fib zone.  Watch for a selling opportunity IF price rallies in to the sell zone.  Daily chart shows price may be finding support at the D target of an ab=cd pattern.  Watch to see if price can hold support here.

Trader Rick goes over a euro currency futures 15 minute chart where a buy is being monitored.  Keep in mind that by the time you receive this update that this setup may be old news.

Next is the weekly Canada chart where price may be in the buy zone but odds are an ab=cd pattern may be developing on the daily chart so be sure to look at that if you trade the Canada.

A channel is containing current price action on the weekly crude chart.  The 60 minute chart shows overhead resistance.  Trend remains down on this market.

Take a look at the 60 minute day session 30 year bond chart  where we may be seeing a change in trend.  IF price pulls back in to the buy zone a buying opportunity may present itself.

The stock indexes are reviewed including the NQ, YM and the ES.  Overhead resistance is shown on the 60 min NQ chart as well as the YM daily chart.  In the ES resistance comes in just above the 1100 level.  Price is in the sell zone on the 60 minute chart.

Good trading!  …and congrats to the New Orleans Saints for winning the Super Bowl. 

Next tip is to check the larger timeframes during the trading day for setups.  Large timeframe could be a 60 minute chart, a 240 minute chart, a 174 minute for the euro, or even a daily chart.  Patience is the key along with proper risk control.  See what Trader Rick considers a common price behavior leading to a quality trading opportunity.  Multiple examples are given.

Looking ahead to Friday’s trading, a look at the ES daily chart tells us what to look for IF price rallies or if price falls.

Good trading!