Charting  |  SEP 2003

Daytrading The E-Mini With Point & Figure by Eugene Steele

Daytrading The E-Mini With Point & Figure by Eugene Steele Here’s a look at how you can trade the e-mini with a classic charting technique. Point & figure charting has been largely ignored as a tool for daytrading, but it is actually one of the most powerful techniques for successful daytrading and a major tool for new traders. Whenever I show a trader a chart, the first question I ask is, “What do you see?” One of the skills of a good trader is the ability to see something on a chart that others don’t notice. That might mean spotting simple things such as which days of the week or month act in a particular way. For example, you might try to notice the relationship of price to trend changes: Can a change in trend ever occur to the upside if the close is below the open? Can it occur on the downside if the open is above the close? If you trade the same stock in various time periods, look for consistencies. Point & figure charts can aid you in making these types of observations.

by Eugene Steele