How to Trade Market Retracements (Webinar Recording)

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About Tim Racette

Tim is a full-time trader in the futures and stock markets and founder of EminiMind.com. He is also a Chicago-land native, competitive mountain biker, adventurer, and ASU Sun Devil.

4 Responses to “How to Trade Market Retracements (Webinar Recording)”

  1. Hi Tim,

    Great webinar on retracements, I never cease to be amazed by your grasp of the markets and every time I go to your blog or read a book you recommend I always something learn something new.

    The most valuable thing I learned from the webinar was concept of the opening range in the first hour of trading – how a wide range would most likely result in a tight range while a narrow 1 hour range would most likely result in a break out and trend for the rest of the day. I had never heard that before and I scanned my charts going back a couple of months and the theory does hold true and very useful piece of knowledge. Once again thanks for doing this.

    A couple of quick questions, I also use a 6 tick stop and I try to stick to it, however if you get in at the 50 fibo level and the 61.8 level is 8 ticks below the 50 level – would you use the 8 or 9 tick stop in case the correction comes in at the 61.8 level? This is what I have been doing and I would like to know your thoughts.

    My second question is do you have any hard rules about when you take your first trade for the day? Would you trade straight off the bell or do you wait for the first 15 minute bar to form? I tend to try and wait for two 5 min bars to print before taking my first trade, I have found that the opening bar is very volatile and every time I have traded it I have lost money not only on the trade but for the day.

    Thanks

    • Hi Dayo,

      I always use a 6 tick stop on the ES, even if the 61.8 is further than 6 ticks. You could make a rule to not take trades that have a 50 to 61.8 distance wider than 6 ticks, but it’s not a necessity as you will either get a bounce or you won’t (either it’s a level with some backbone or it isn’t).

      I wait the first 15 mins and usually the first 30 mins before taking a trade in the ES. I don’t have a specific setup I take every morning off the opening bell.

      Tim

  2. Hi Tim,

    It’s a great webinar. For a beginner like me, I learned a lot on this. I really like the topic on Specific Setups. It gave me insights on how to enter and exit in the market.

    By the way, what chart tool/system did you use?

    Keep it up Tim! Good job.

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