SMB Futures TOTD – 5/23/18

Merritt BlackFutures, Reading the Tape, Technical Plays

It’s time for the Futures Desk Trade of The Day! If you missed yesterday’s, you can find it here.

We love having our traders in Europe and Asia on the Futures Desk. It allows us to capture some trades while the rest of us here in NYC are fast asleep. This trade was just after 4am NYC time.

Key variables:

  • ES Futures extended move down overnight
  • First test into key support level
  • Clear shift in order flow right in front of the key support
  • Scalp the direct move up until buying dries up
  • Rinse and repeat

Below is a 30min chart of ES, showing where the critical support level (green highlight) was as ES sold off quite hard in the overnight session:



Now let’s move into our intraday chart to see the shorter term price action. The trader identified a change in the orderflow as we got right into the level, entered long at 2706.75 and exited when the buying dried up at 2710.00

ES. 2min chart.

Note they key here is in the read on orderflow. Do you find yourself mis-timing entries? Poor exits? Getting just run over when you enter, immediately?

You need to learn to read orderflow better if that’s the case. SEE the change in behavior of buyers and sellers. It’s not a walk in the park, golden ticket, or holy grail that will turn your trading into 100% winners; but it is a crucial skillset that is often overlooked in today’s markets by those that think HFT’s have killed this ability. It’s just not true, else my guys would not be able to do the things they do.

We’re going to be doing an orderflow bootcamp soon. If you’re in our Slack room, you’ll be sure to get the details as they come out.

Trade well,


*No Relevant Positions

Risk Disclosure