Jacobs Ladders Weekly Rewind Oct 16-20
Jacobs Ladders is a pivot based trading system that provides perspective on high quality, profitable trade setups for day traders. The purpose of this blog is to educate day traders on this trading system and provide links to the levels on a daily basis. You may wish to bookmark this page.
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The objective of the Jacobs Ladders is to help day traders identify and capture a minimum price movement between any two adjacent pivot points. This system when used correctly will improve the consistency of winning trades and helps minimize risk and losses.
In this weekly blog series, I will point out set ups that occurred during the past week that are illustrative example of how to use Jacobs Ladders for day trading. These examples have been tweeted out on our public twitter feed, you can follow along here @the_artofchart.
For more educational information, please see the previous introductory post introducing Jacobs Ladders day trading system which can be found here.
S&P 500 Emini Set up Examples
The S&P 500 Emini continued to trade in tight ranges last week. Jacobs Ladders levels continued to give set ups that provided at least 4 handles each day. See the annotated charts for every day of the week. See Thursday’s chart for an example of after hours trading.
Crude Oil Futures – Trading the inventory report move
The Inventory report on Crude Oil Wednesday continues to provide a nice trading set up on CL. As soon as the report comes out, price moves in one direction and halts close to a level then it goes to other side and halts at another level. It is the pause a trader must watch. And one must respect the possibility of a break out move and have stops in place.
See Crude Oil on Wed how price paused at Lower High and gave a short entry and also a second short entry at OPG ? See how the sell off halted at Low 1?
The key is to not blind fade but watch for the sign of a pause. See where it ends against a level and use stops at the next level.
Euro Dollar Futures
You Don’t have to pay hefty fees to trade the US Dollar. Euro Dollar futures is an alternative. 6E is an excellent instrument and it respects Jacobs Ladders levels perfectly. It gives highly likely reaction set ups at Level High, OPG, and Level Low, Low2 and High 2.
Here is a perfect example from last week
I hope this educational post helps you understand how to use Jacobs Ladders. Please look for our educational posts on our public twitter feed at @the_artofchart.