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Day trading futures requires a "Short Term Participants View" analysis if we want to day trade futures efficiently. let's see how to day trade analizing Market Participants.

To be day trading futures successfully we have to follow a thorough analysis in order to day trade futures. Once we have analyzed our "long term view” of The Market to day trade futures efficiently, we now need to zoom in into a more detailed view, when commodity day trading, of where the market is trying to go and how good is it trying to move there.. If you understand this you will learn how to day trade. But remember the two questions…

Also remember that day trading futures must be approached with as much simplicity as possible, so we can clearly spot those levels to buy or sell.Ok, let's stop talking a go to Step 4 of our Futures Trading System to day trade futures efficiently.

***Click on charts to enlarge***

  • Step 4

    (Chart Below)

    In this Step 4, I Recommend to mark up the levels with a "thinner" line or a different color line from those in previous steps. Such thing makes day trading futures easier.

    It also helps us to quickly identify if The Market is at a "thick" level (formed by the "Long Term Participants" or if The Market is at a "thin" level, formed by a mixed of "Long Term Participants" ["Other Timeframe participants" (Investors, Hedge Funds, etc)], and also by "Short Term Participants" ["Day Trading Participants" (Market Makers, Individual Traders with lots of money, etc)].

    I could dare to say that "thick" levels formed by "Long Term Participants", tend to be stronger that "thin" levels when you are day trading futures, BUT do NOT keep this into your mind, as it depends more in The Market activity, than simply a matter of saying that one level is stronger than the other.

    But, as a general rule, "thick" levels provide higher "accuracy" than "thin" levels, since they are formed by the ones with the most money. ("Long Term Participants").

    I do NOT Rule out any of The Levels for being "thick" or "thin", when day trading futures I trade both as equally because they represent Supply and Demand levels.

    Ok, now my friend, let's stop chatting and keep going with step 4.

    In you chart…

    1. Mark up the Highs and Lows (places where price stopped and reverse, or changed trend, in the 5 Min chart) (CIRCLES).
    2. Mark up The Levels where The Price has bounced several times (SQUARES).

  • Step 5

    (Chart Below)

    In step 5, when day trading futures, we check the Vpocs of the previous day(s), in case the market opens Outside yesterday’s trading range, and also act as Support (Demand Level) or Resistance (Supply Level).

    1. Check and mark yesterday’s Vpoc in case we open OUTSIDE yesterday’s trading range for at least several points (green circle).
    2. Check and mark previous days Vpocs in case market opens far away from these levels and decides to go back to them (looking for the most traded price or equilibrium)(black circles).

    As you can see in this case, the black circles or Vpocs, from 2 and 3 days back, overlap with levels of Step 4. This helps us see, at some point when day trading futures, the strength of the level. The more the levels confluence or overlap one to another, the better.

    If you do not understand very well the Vpocs to day trade futures, go to Volume Profiles and check that part out (we do not want to miss anything, it is the only way to be day trading futures successfully, checking things out several time until the concept sinks in.

    (God this kind of talking remind me of my finance teacher, yak!).

    Ok, now let's look at Step 5 chart.

  • Step 6

    (Chart Below)

    Now we move into Step 6 when day trading futures:

    1. Zoom into the 2 Minutes chart.
    2. Check THE NEWS for the trading day so that you can be aware that, when they are released, (normally at 10:15 AM or 2PM New York time) you MUST STAY OUT when day trading futures for at least 20 minutes, since The Market will act as a catalyst and the levels we mark up can become weaker.

      This happens because during important news, and for those 20 minutes or so, The Market is looking for value in a FAST AND UNPREDICTABLE way.

      Emotions are at its fullest at that moment when traders and investors are day trading futures. Fear and greed by buyers and sellers are at its peak. Most “big Players” act here fighting each other, so please stay OUT when day trading futures until they settle and calm down their emotions, remember this is a Auction Process and emotions play a KEY ROLE day trading futures efficiently.

    3. Relax and remember that this is a business and you must treat it as such. (No, i don't want to scare you. Just be careful and enjoy the game!. We need to have fun, otherwise it is not worth it).
    4. Number your levels in case you want to do so…

    Let's check Step 6 chart...



    I have also put up a zoom into that 2 minutes chart to have a clearer view to day trade futures.

    Let's look at it. I have Numbered the levels from 1 to 10, you can do so if you want to. The best day trading experiences come from order.

    • Very well done !!.

    You have done a great job !. We are now finished with our "Short Term Participants View" analysis, we are now prepared to be day trading futures.

    Now we have a system to day trade futures and pullsome money out of the market through day trading.

    After the analysis of the "Long Term Participants" , plus the "Short Term Participants" analysis made here, my "guess" or "biased" is the following:

    1. If the market opens between levels numbered 6 and 10. we take into account those levels, and look for a sideways market between those levels.
    2. If we break level 6, sellers might step in waiting for buyers to come in, that could happen at any level from 1 to 6, But level 1 and 4 are the most important for me at this stage, when the market is closed. (All this is called Pre-Market Analysis).

    Remember, this is just a "biased" opinion. The Market can dowhatever it wants to do. This is just a "game plan" to spotbuyers and sellers.

    Now let's go to the result of the day and check what the Market did in


    The trading analysis.


    Click here to go back from "Short Term Participants View" ( day trading futures ) to Futures Trading System

    Click here to go back to Futures Trading How To


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    Trading Futures and other instruments involves substantial risk of loss.
    Information shared here is for educational purposes

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