David S Adams

It is not unusual to hear individuals ask about trading the "high probability" gap trades. It seems that there is a perception (by some traders) that e-mini gap trading falls into the sure-fire trade class of trades. Note: I have yet to locate a sure-fire trade in several decades of trading.

I've been writing some about trend lines lately and noted my observation, in several of the articles, of the declining use of this valuable charting tool. I don't have any illusions that a couple of articles by a relatively unknown author will have any effect on the use of these lines; but if just a couple of traders see the value of trending lines and e-mini trading, then I suppose I have done my job.

I like trading indicators that help me understand e-mini trading in real time. I can think of no better real time trading experience than watching price action move toward a known area of support/resistance (SAR) and evaluating what the possible outcomes may be when price collides with support lines or resistance lines.

Given a choice of just one e-mini trading indicator/chart pattern I would select, hands down, support and resistance. In my little world of trading, support and resistance (SAR) reign supreme.

Trend breakouts and breakout volume share two important factors (among a list of other important variables) in shaping the likelihood of a successful trend breakout or breakdown. For obvious reasons, volume in a specific direction is a key ingredient in a successful trade.

I make it point to sketch in a trendline on the e-mini charts I trade. I don't use the automated trendline programs that have become very popular of late. No, I prefer to draw my trend lines manually using the tops of each bar range, as oppose to drawing trend lines based upon the close of each bar.

Most e-mini traders with even a small amount trading experience quickly note that the market is broadly moving up or down, usually in the familiar zigzag pattern. Despite the undulations in the movement of the market, it is relatively easy to spot the direction the market is moving.

As I look over the myriad of e-mini trading charts I receive from past students, friends and interest bystanders I have noticed that the diminutive trend line is often missing from the chart.

When chatting with individuals who have heard that e-mini trading is a great way to make a living, I am invariably asked if they really have a chance of succeeding in e-mini trading. In my opinion, there is no more difficult question to answer than this simple inquiry.

There may be some very intelligent e-mini traders who have some innate ability to ascertain these moments; I am not one of them and neither are the overwhelming majority of traders in the market on a given day.