Pre-market Scalping Using DayTradeToWin Trade Scalper
If you ask a number of successful day traders about trading pre-market, chances are you will get mixed answers along with an abundance of caution. John Paul from DayTradeToWin generally advises caution, but certainly understands and shows many opportunities do exist before the E-mini is considered to open at approximately 9:30 a.m. US/Eastern.
The hesitation involving pre-market trading is the lack of liquidity and big players that generally cause trends seen after 9:30 a.m. However, if you have been looking at premarket activity, at say, 8:00 a.m. to 9:30 a.m. US/Eastern for the last year, you will see significant volatility. This wasn’t always the case. What changed? Much has changed in the world in the last year. Aside from C-19, we have crypto taking the world by storm. Does crypto officially open at 9:30 a.m.? No. Are there massive amounts of money trading in crypto markets? You bet. Can we say with absolute certainty that crypto trading and crypto developments do no impact the E-mini or other “old” markets? Absolutely not. In fact, in recent months, we have seen some of the very companies that make up the S&P start to accept crypto. These expansions have affected their stocks, undoubtedly. That alone will impact the E-mini S&P.
This video shows a real-time Trade Scalper trade based on a signal generated by said software. When scalping, it’s important to get in quickly. If you wait too long, you may not get the best price or the entire move may be over. The signal will appear on the close of a candle, so you can get ready ahead of time. You’re also taught the rules that constitute an entry signal. You’ll know if there’s a good probability the closing of the candle will cause the signal to appear. In other words, you’ll know what the signal software is doing, so you can anticipate when signals will appear. Got it?
So, what about after-market or after-hours trading? Again, off-hours trading is known for slow or choppy conditions. The Trade Scalper is one of the best price action methods from DayTradeToWin to trade because it requires less volatility than other methods. You may want to look at after-hours trading charts to see if there has been decent volatility. Check if the ATR, using a period value of four, has been two to four points. Has there also been consistent direction? If so, successful trading during that time period may be possible. There are no guarantees, so stick with what is recommended or experiment in simulation mode first.