Russell 2000 Futures: Volatility Creates Fib Swing Trade Setups

David Busick

Below is a textbook example of a swing trade on the e-Mini Russell 2000 Futures (TF). And the recent volatility helped to create some big opportunities with my Fibonacci method.

Let’s go back to last Wednesday. The target/support price area was 1185.6. Price dropped 4 ticks under that level and then proceeded to reverse higher and move all the way up to the 2nd resistance of 1224.4; a move of +38.8 points on the Russell 2000 futures (or $3,880 per contract).

An entry on the short side at 1224.4 would have given you a few ticks of heat before moving back to the target of 1185.6 once again or another +38.8 point move. The entire move was worth $7,760.oo per contract. Although you likely wouldn’t have captured 100 percent of the move (depending on your discipline), you definitely would have made some money with this method.

This entire move took 7 trading sessions; this is where your patience and discipline gets tested. Trade safe and good luck out there.

e-Mini Russell 2000 Futures Daily Chart

russell 2000 futures trade setup chart august 20

Thanks for reading.

 

Twitter:  @TheFibDoctor

No position in any of the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

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