Emini Futures Trade Entries Using Intraday Highs and Lows

Skilled Traders Use Intraday High and Low In Their Trade Strategy

An Intraday high is defined as the highest price reached during the trading session. Similarly, the intraday low is the lowest price reached during a session. There is a relatively straightforward way to use these important intraday prices to place trades. This is particularly useful for scalpers but also can provide some serious profits for intraday trend traders. To use this concept to place trades, you need to know how to use stochastics. Assuming you do, here’s what you do: Assume the prices have been rising and have reached the high of the day, and the stochastic is at an overbought level. At this point (if the next candle confirms), fade the market (place a short). If the price was truly the intraday high (up to that time of the day), enjoy the ride as prices decline. If however prices reverse and take out the previous high, close out the trade. The loss will be minimal, so no damage done. This strategy offers a relatively high reward along with reduced risk for emini futures day traders.

Anyone who wants to learn how to trade needs to try to determine where to enter a trade. The intraday high or low price gives the trader more information on which to base a trade. Knowing how to use the intraday high or low price also makes knowledgeable traders much more successful than others who use the “seat of the pants” method. 

In trading, knowledge is power. The more you know about the market, the more likely it is that you will be successful as a trader. Without knowing metrics like the intraday high or low price, you do not have enough information on which to base a trade – unless of course it is a gap trade at market open.

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