What is the Power E-Mini Morning Quicksand Zone?
It’s a key congestion zone that is generated right at the market open based off of several hours of pre-market price data.
Think of this range as an early morning Glue Trap for price.
It’s a no-trade zone. Only when the price is able to break out of this range is it freed-up to move significantly in one direction or the other.
The Morning Quicksand Zone is Simply Our FIRST Dynamic Trigger Range of the Day
Frequently in the Futures market we see large directional moves off the open – what we refer to as a trend-up or trend-down day. This obviously doesn’t happen every day, but typically we see a day like this once or twice per week. This is where the market picks a direction shortly after the open and trends strongly for a period of time (maybe all day) without looking back.
How To Use This Zone Each Day In Your Trading.
Each morning upon receiving the Range High and Range Low, plot 2 horizontal lines on your trading charts and use these as key visual reference points. When price breaks past a Range High or Range Low – a significant trend move may just be getting started.
If the Longs can muster the strength to bust the market out of the top of this range it signifies BUYERS are in control and you should be on HIGH ALERT for an uptrend to develop.
If on the other hand, the the Sellers have the strength to break the market DOWN out of the bottom of this range, they have taken control now and a downtrend is likely to begin.
We use this range to capture early morning breakout trades.
Remember: The Morning Quicksand Zone can be thought of as an early morning NO TRADE ZONE.
When price is stuck in the zone you sit on the sidelines. When price breaks out you trade in that direction.
The Dynamic Trigger Range Takes the Quicksand Zone Concept A Step Further
The Power Emini Alert Software is designed to key off what we call the “Dynamic Trigger Range”. The Dynamic Trigger Range computes a high and low price level which auto adjust in response to market price movement.
In other words, throughout the trading day the Trigger Range “shifts” and dynamically adjusts as price and volume form new levels of support and resistance. The Dynamic Trigger Range formula is designed to pinpoint with great precision the EXACT PRICE LEVEL where the next MAJOR PRICE BREAKOUT will occur – both Long and Short.
So in addition to the Morning Quicksand Zone range, the system is monitoring the shifting market boundaries for us throughout the trading day. Each time a new range is established we simply drag our two horizontal lines in the chart to the new range levels.
In the very same way that the Quicksand Zone is the “no-trade zone” at the market open, the Dynamic Trigger Range provides us with the “no-trade zone” for the rest of the day.
It’s when price can break out of the range that the buyers or sellers can run the ball across “Free and Clear” zones in the market. The wider the range, typically the more congestion the system is trying to keep us out of.
The Range High and Range Low of the Dynamic Trigger Range provide us with Key Visual Reference Points on the charts
Using these auto-adjusting dynamic ranges, our system is virtually guaranteed to capture any significant directional moves. Think of it as a “range breakout” strategy and you know exactly where the boundaries of the range are at all times.
While at certain times there isn’t always strong trending action in the market, the times where there is, the price will break out of the Dynamic Trigger Range and “run the ball all the way down the field”. A good analogy is the line of scrimmage in a football game (the Range High or Range Low). If a runner has the ball and is able to break through the line of scrimmage into a “free and clear zone” – there’s a good chance he can score significant yardage. (In our case, score significant points).
Incorporating the Morning Quicksand Zone and subsequent Dynamic Trigger Ranges into your trading can give you the edge you’ve been looking for. These concepts form the basis for our Power Emini Momentum System – which runs automatically on our server – 100% fully-automated.
Our Desktop Alert Software is the “receiver” that shows us exactly where the price boundaries are at all times. Using this information we know where the “no trade zone” is – and where the market is likely to “break out” and make a significant directional move.
I hope this post gives you a small glimpse into the main concept that forms the basis of our E-Mini Day Trading System. Once you spend some time watching how the Dynamic Trigger Range works in real-life market conditions, you’ll see why this system is so powerful. If you think about the “range breakout” concept for a minute, you’ll realize how it’s perfect for catching the BIG MOVES that occur in the market.
We all know that not every trading day is created equal – some days the market is dull and some days there’s a lot of action. See this Blog Post on Understanding How Different Market Day Types Affect Trading.
If you aren’t already using our Alert Software – give it a try for a month – and experience the precision of the Dynamic Trigger Range levels. After you see a few “runners” in action you’ll understand the power of this strategy – and how it will benefit you as a Futures trader.