Don't over complicate these 3 simple tips. Just know them and keep them in the back of your mind.
1.) Price tends to run in 5's
2.) I use what I call the 5 lines. This is nothing fancy but rather I plot out 5 point increments from the previous day's close.
3.) Price will either tag the first hours low or tag the first hours high.
4.) Split the first hours high and low to get a better understanding of where price is.
As noted above, the Russell Futures have some tendencies. Price at some point, if not the entire day, will travel in increments of 5 or 10 points. This is what makes the 5 lines a healthy trading roadmap to include in your toolbox. These support or resistance levels will become more valuable as time goes by. You'll be able to see how price action acts as it approaches these levels each and every day.
Everyday there is a high likelihood that one of two things will happen after the opening bell of the regular trading session. Price will either tag the first hour high or first hour low. This seems like an obvious statement, but how often do you think about where we are in relation to these levels. Take a step back and think about the idea that price is going to move. Be proactive in the way you think about the movement of price. Chances are we will move so understand what may make the most sense in the near term or even through the day.
Just as the first hour high and low can give you some confidence, the 5 lines can also assist. The 5 lines can be broken down to provide further detail of what may happen. Think about these levels as a phone and battery life. Say for example I want to hit the road for short road trip. Depending on how much battery I have left or used I may need to hang on for the next hour and charge my phone. Once this is ready I'll start my trip.
FULL RISK DISCLOSURE: Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.