Jacobs Ladders is a day 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.
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 setups that occurred during the past week that are an 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 at @the_artofchart.
If you are new to Jacobs Ladders, please start with this post: Introducing the Jacobs Ladders™ Pivot System. I highly recommend reviewing past blogs in this series where you can find 90 plus examples. You will find the links to past weeks’ posts at the bottom of this article.
Introducing Premarket levels
Last week, we started posting premarket Jacobs Ladders levels. They will be published each morning at 4:01 a.m. eastern. To try it out for free, please click HERE.
Most days between 7 a.m. and 9 a.m., there is at least one good trade set up either in Indices or energies. Now that the volatility has increased often a premarket set up could be a day trading target maker. Our stated goal is to find a support or resistance level that is worth 4 ES handles or equivalent with premarket now there are 23 hours of day trading levels coverage. Remember: regular Jacobs ladders levels are valid till Europe opens.
Another good benefit of premarket levels is to get an early entry into the morning regular hours trend and be risk out. In this system, the time between 9:30 and 10 a.m. is a “no new trade zone.” This is to avoid the initial whippy nature of the market open move. However, if you are already in a trade before the market opens and have a runner on at breakeven stop, if they market opens into the direction of pre-market move you may catch some very nice handles.
As usual, there is a ThinkOrSwim study for Premarket levels as well.
Here are several examples from past week on how JacobsLadders support resistance levels gave trade set ups
Jacobs Ladders TOS Study
Don’t forget to check out the ThinkOrSwim studies for both premarket and regular trading hours. This links to the studies are included along with each of these two levels system.
They both exist together with links for premarket levels beginning at 4.00 AM eastern and ending at 9.30 eastern. The regular levels lines begin at 10 a.m. eastern.
Here is how they will appear:
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.