Lecture on Futures Index Trading

Introduction

• Focus on major four asset classes: Index trading, specifically futures index trading.
• Emphasis on paper trade and reading disclaimers.

Session Details

• Date and Context: June 2017 ICT Mentorship, ICT Index Trading Concepts Lesson 1.
• Focus on the e-mini S&P 500 (symbol: ES).
  • Trading during New York session (9:30 a.m. - 4 p.m. NY time).
  • Contract delivery months: March (Code H), June (Code M), September (Code U), December (Code Z).
  • Format example: ESU17 for September 2017's contract.
  • Tick value: $12.50 (1 point = 4 ticks = $50).
  • Leveraging: $50 times the S&P 500 index.

Index Trading Basics

• SPOOS: Slang name for S&P 500 trading, popular in the 1980s.
  • Opening Range Concept:
    • Highest volume: 9:30 a.m. to 10:00 a.m. NY time.
    • True day: 9:30 a.m. - 4 p.m. NY time (focus on day trading).
    • Opening range: 9:30 a.m. - 10:30 a.m. NY time (1-hour focus).
    • Significance: Creates market high or low, potential run on stops or fair value setup.

Trading Examples

• Chart Analysis:
  • Example 1: 15-minute chart for September contract 2017.
    • Delineates opening range (9:30 - 10:30 a.m.).
    • Volume highest during this period.
    • Potential trades by observing reference points within the opening range.
  • Example 2: 5-minute chart for a different day.
    • Highlighting opening range and associated price movements.
    • Observing bullish order blocks and potential rallies.
  • Example 3: Similar analysis for September contract.
    • Extended range analysis and impact on potential trades.
    • The concept of 'turtle soup' (price movement below opening range).

Other Indices

• NASDAQ e-mini futures:

  • Opening range: 9:30 - 10:30 a.m. NY time.
  • Volume patterns and potential short positions within range.
  • Reference to rejection blocks and order blocks.

• Dow mini futures:

  • Opening range: 9:30 - 10:30 a.m. NY time.
  • Observing volume nuances and rejection blocks.
  • Emphasis on volume precursors to price movements.

Trading Techniques

• Importance of Opening Range:
  • Focus on 60-minute opening range; significance in setting support/resistance levels.
  • First 30 minutes are crucial for AM Trend trading.
  • Institutional order flow consideration for better trade decisions.

Conclusion

• Overview of indices trading and the importance of blending different indices for stronger signals.
• Emphasis on understanding the opening range and its implications for trading strategies.
• Upcoming focus on Trading the AM Trend in the next session.