How the BuyZone works on the Euro Futures (6E)
Posted: Fri Nov 30, 2007 5:17 pm
Avery asked me to post some screen shots and explanations of how I trade the hourly BuyZone on the 6E.
My setup consists of drawing horizontal lines on the open of the day 9:30 EST and redrawing those lines each hour so redraw at 10:30, 11:30 EST etc. From there I draw a line 3 ticks above the hourly open and 3 ticks below the hourly open.
Based on the statistics that Avery has talked about among the currencies, the EUR/USD tends to range about 19 pips per hour. I figure this is pretty similar in the Euro futures market.
My target is 10 ticks, stop 5 ticks. I also use a time stop. If the market hasn't moved at least 5 ticks to the good at some point in the first 5 minutes of my trade I'm out. I can always re-enter. Once I get my 10 ticks for the hour I'm done. IT REALLY IS THAT SIMPLE!
Over the past 2 weeks this has averaged me a net of about 4-5 ticks per hour. Doesn't sound like a lot of money right? But that's an average of 16-20 ticks per day.
My setup consists of drawing horizontal lines on the open of the day 9:30 EST and redrawing those lines each hour so redraw at 10:30, 11:30 EST etc. From there I draw a line 3 ticks above the hourly open and 3 ticks below the hourly open.
Based on the statistics that Avery has talked about among the currencies, the EUR/USD tends to range about 19 pips per hour. I figure this is pretty similar in the Euro futures market.
My target is 10 ticks, stop 5 ticks. I also use a time stop. If the market hasn't moved at least 5 ticks to the good at some point in the first 5 minutes of my trade I'm out. I can always re-enter. Once I get my 10 ticks for the hour I'm done. IT REALLY IS THAT SIMPLE!
Over the past 2 weeks this has averaged me a net of about 4-5 ticks per hour. Doesn't sound like a lot of money right? But that's an average of 16-20 ticks per day.