Preparing ES Emini and MES Micros Traders
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Transcript

Price Action Bounce Trading System. How To Scalp ES Emini or MES Micros Futures.

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“All right, happy Sunday afternoon. Let’s talk about the continuous ES contract versus the M contract. So this is the continuous right now, and you can see estimated volume 2.6, and the June contract received 1.2—a significant jump up from the prior day. So it’s time to start rolling over and trading the M contract. Let’s look at the M contract versus the Continuous contract a little closer.

So here’s the continuous contract, and TradingView went ahead and switched over, and you’ve got that gap. That happens every time there’s a switch over. Now, an ES trader that I respect always uses the back adjust button. So let’s push the back adjust button, and what that does is it pulls the price up to meet it and just readjust everything.

Now let’s compare this ES continuous contract with the back adjustment turned on compared to the M contract. This is a lot like when you go to the optometrist, and they’re like A or B, A or B. So let’s compare them with the back adjust turned on. I’m going to switch over to the M contract now, and just look at this all the way from here to here. Look at it.

I’m going to switch back: continuous, M contract, continuous, M contract, continuous, M contract, very, very, very, very, very similar. So let’s dive a little deeper. What I did first of all is turn on volume, and you can see where the volume has come in—right a little bit here, a little bit here, a little bit here, tiny, tiny, tiny, right? And then it all came in.

And why is that important? Because when people are defending price, how many people are defending price? Obviously, there’s going to be more people defending price on this day than people defending price on this day because everyone is rolling over to the M contract. No one’s going to have the H contract here—you know, three weeks. No one’s defending an H contract price because that’s not where they are in the trade.

So let’s look at the low here, and that low is at 2425. Let’s go look at that on the continuous contract. It’s at 26—not the same, but pretty close. What about this low here on the continuous contract? We’re at 22. On the M contract, we are at 18—close, but not the same. Close, but not the same.

So let’s do this. Now, let’s go to a daily chart. Let’s find something a little further back, and you can see where this thing has spot-kind of traded here and there. And then you can see where the volume kind of came in—there’s still gaps in here. It’s not the cleanest, for sure. Look where the volume came in, obviously, compared to the rest of the time.

So let’s come in here, and let’s pick a significant, what I would call, a significant level on the chart. So let’s do this front side here, and let’s do the bottom of the blue candle here on the M contract. Let’s find the same thing over here. Let’s go to the daily. Let’s move these two things down to here. Let me turn on the magnet tool, make sure that this thing is snapping where it needs to snap, and come in here. Same thing over here—yep, okay.

So over here, we have 21 and 5275. 21 and 5275. Yeah, that doesn’t look close, does it? So let’s switch back. 21 for this first number and 29. All right, so the variance is increasing. This one’s 63.2—that’s 10 points off. So as we get further away from price, the discrepancy increases.

Now the truth is, how far away is that? Let’s look. That’s 260 points away. This is 330 points away. Am I likely going to play the bounce? 200 and—I mean, 300 points away, probably not. We trade our intraday levels as they’re developed. So the truth is, as we’re coming down, I’m hoping to be short coming towards them. I’m not necessarily using them as a bounce level per se as a trade entry.

So what am I going to do? I tell you what, I’m going to do. I am going to do the continuous contract still, and I am going to turn on the back adjust button and see how I like it. I’ve actually never done it; it’ll be a new experience. But I have gone in and made previous contract notes, and I can promise you right now, if I turned on all my folders and we scroll down a little bit, you would see other contract levels that we actually never went and hit, but I noted them for thoroughness.

Stay green, my friends. And to learn more about our group, go to microstrader.com.”

Transcript
“All right, let’s do part two. I’m on the ES continuous contract with the back adjust button turned on. I cannot use my old levels; they’re all wrong, but I’m going to keep them. I’m not going to get rid of them just in case I decide I’m not going to use this back adjust button. I can go back to my original levels; I have way too many to just delete. I’m not going to do that. So what we’re gonna do is we’re going to come in and mark these levels.

So, I got one level there. I’m going to go ahead and make a folder, and I’m going to call this ‘m weekly,’ that way I know it’s the M contract, we’re on the weekly. And now what I’m going to do is I’m going to duplicate this. I’m going to slide this over because it didn’t take out that low which was done in an overnight session, but that’s okay; we’ll clean that up here in a minute. So I’m just marking all of these. I don’t really need to put that it’s a low; I know that if I’m coming to it, it’s a low. So I’m just holding down the control and duplicating them. The beautiful thing of doing it like that is it keeps them in the folder, which is nice. So we’re going to go to there.

Next thing I’m going to do is I’m going to turn on, oh, there’s my fair value Gap. All right, so what we’re going to do now is I’m just going to turn on this one little fair value Gap indicator, and I want to know where all of my weekly fair value gaps are. So we’re going to turn this to white. I’m going to call this weekly fair value Gap. Let’s make sure that this thing is snapping to where it needs to. Let’s duplicate that. Let’s bring it to here, put these in my weeklies, duplicate it so it keeps the name ‘weekly fair value Gap.’ Why not? Let’s go and mark these other ones. This is simple enough, takes hardly no time. And look at this, look how many weekly fair value gaps we have below us, amazing, amazing what a move. So let’s just mark all those. Let’s bring this in like this.

Um, do I, this would be a potential backside, but it’s being blocked by that blue candle, so I don’t count it. This is a potential weekly backside; I need to call this a middle backside though. Middle backside Wick, actually, and the base is going straight through it; it’s not the cleanest of levels. Um, in fact, I’d probably tell you not to mark it, so I’m going to delete it ’cause I don’t like what the base looks like; it’s going through the other blue candle over there. I can’t mark this as a middle backside; it’s going through that candle. Now, this, I could mark. I’m going to leave that at the wick; um, I’m going to call this a middle backside Wick. And then we’re going to make this middle backside base. And I’m going to duplicate this; I’m going to bring it down to the base, um, front side plus fair value Gap. I’m going to change this to purple. And let’s look at all of that. I’m okay with all that; that’s a long ways away, 4700, that is a long ways away. And if we get down here, I will come in and mark these; in fact, let’s just go ahead and do it, why not? Come on, I want these to be dotted. There we go, there we go, there we go, there we go, and weekly, weekly, why not? It doesn’t take a whole lot of time. So that covers a really nice big range. Um, and what I’m going to do is I’m going to put a little note here, last level marked. Okay, so that’s going to be my weekly; this is for the continuous contract but during the M contract period. Now I have not gone to the M contract to see if there’s much variance. I don’t really think that’s necessary on these weekly, so I’m not going to worry about them.

Now what I’m going to do is I’m going to come to this 30-minute level. I want to turn on our sessions, and what I’m going to do now is I’m going to make some markings for these sessions. We’re going to turn this solid; we’re going to turn this white, and I’m going to call this RTH low. Now we’ve got this London low here; I want to denote I actually have a London low. We’re going to come here, denote this as the Asia low, and let’s see if I got that marked right. Yeah, I’ll take this. All right, so we’re going to mark this as an RTH low. I don’t need to denote that; that’s RTH low with white. This other weekly low here was created where? London. So we’re going to call this that was based off a London overnight low. So let’s look at what we’ve got so far. This is the all-time RTH high; I wanted to note that that was done during the RTH session. So we got the all-time high RTH; we got a London; we got an Asia; we got a weekly low done during the RTH, and I’ve got a London overnight low done in the RTH as well. And so let’s go ahead and mark some more levels here. We’re going to mark that; I want to mark this as the London. Come here for the Asia, and then we got this weekly low, which is also a daily RTH low, beautiful. What’s this week low? This is an RTH low; let’s denote that. And just for a moment, I want to go to the 4-hour chart; I want to just see how far I’ve gone down and marked. So we’ve gone down and marked to this level. I think that’s pretty darn good; that’s multiple 4-hour break levels away, so I feel comfortable with those. So really, that’s just marking session lows below us. I want to pull this in. All right, let’s put all these in a folder; once again, I’m going to call this ‘M,’ and I do put this under the low time frame CU, I always want those on, so they’re on where if I was marking my levels during the day, I want to know where all of those are located. Um, let me just take a peek here real quick; I don’t think this is an errant marking, and it is. This was also done RTH; go ahead and mark that if I want super easy RTH love. This is also an RTH low; RTH low. All right, I’m fine with those. I think I’ve got the sessions marked pretty well here. Yes, yes, yes, yes, yes, yes, yes, beautiful.

Now for tomorrow, I’ll mark the RTH, and I mean the halfback and all of that. I’m not worried about that at this moment. At this moment, I’m just trying to get my continuous contract caught up with the major levels. To me, those are all the major levels; I’ve got the weekly lows; I’ve got the RTH, London, and Asia untested lows. So let me go to a daily chart here; I can turn those back on too. Now I can see my daily lows, and I don’t need to mark a daily low if I already have it marked like this daily low, this daily low is marked, this daily low is marked, this daily low is marked, this daily low is marked, this daily low is already marked. I don’t need to denot note those in my humble opinion, but this is a low here that’s below; let’s go to 30-minute chart here, scroll over. Let’s take a peek. Let’s take a peek. So actually, that is done; scroll over, and the next low is that RTH low. I’m totally fine with those markings. Let go back to the daily chart; let’s reset the chart, and let’s zoom in to this area. All right, so I’m going to come in even a little tighter now. What do I want to denote here? So we’re going to denote this volume and balance here. Daily volume and balance and daily volume and balance. Okay, so this is now going to go into my M daily. I know that these are the adjust; these are on my continuous contract, doing the switching to M and the back adjust button. Want to make sure I had that back adjust button turned on. Very nice. I want to turn on my fair value gaps again. Here, so I got this level, a daily fair fair value Gap. Beautiful; slide that into there. That way, if I duplicate it again, I don’t have to move anything. Um, I selected more than one thing; I want one level. There we go. Let’s move that to here, move that to here. Um, I got a daily backside here Wick, and I don’t believe that has actually been touched. It has not been touched. And let’s do a little math here. Let’s turn off the magnet tool. Okay, that’s within three ticks of being tested. So what we’re going to do is I’m going to mark this three ticks tested; we’re going to go backside Wick plus three ticks tested. I’m still going to mark it; that’s a backside Wick there, three ticks tested. Um, let’s move that into here, and now what I’m going to do is I’m going to come in here, turn back on the magnet tool, and I’m going to mark this as a backside base. I’m G keep those same notes there. I’m going to add another one right here ’cause look at all these bodies in this area here to me. This is a significant area, so I want to pay attention to that. Um, we call this on-side Wick side base. So again, I like to keep a tidy M. Now, one of the things I would want to denote here, the size of this Wick; I want the middle of it to be marked. Let’s go here, here. I want that middle line to be white; turn off the magnet tool; let’s zoom in. I’m going to put a level here; I’m going to make this dotted; we’re going to put 50%; let’s widen that. See how close I’ve gotten to the line. I think that’s probably pretty good; slide you into here. I want to denote 50% of that Wick. I also want to denote 50% of this Wick; let’s turn the magnet tool back on. Let’s draw our box; we’ll slide you somewhere here. And zoom in here; let’s go to there, delete. Let’s reset the chart again. We got more daily fair value gaps down here. Let’s denote this daily fair value Gap; let’s make sure that’s on the money, and it is. We got another one here. M Market another one here as well. Mark it just keep our object tree tidy. I’m fine with that; I’m fine with that; those are a long ways away. Let’s zoom in here again; I want to get rid of this levels; I want to get rid of this levels; I want to turn off this so I can look at this with a clean set of eyes. Turn back on my weekly levels; I’m fine with that; I’m fine with that; turn that back on; I think I’m fine with that; I’m fine with that. Okay, so I need to move my daily here; I’m going to turn that off. Now I’m going to go back to my 30-minute levels. So we got a 30-minute fair value Gap here. In fact, if you want to just turn on your little indicator there and say where are all my 30-minute fair value gaps. It’s good to know where these things are; you got a tiny set right there. They’re actually single prints, so these, we’re going to denote single prints. Not this single prints. All right, I pressed some button wrong; we’ll throw those on there. I’m also interested in what’s 50% of this Dad; yes, okay, love you, love you, kiddos are home. All right, that looks like 50%; I’ll take it. So we’re going to call this London halfback; I think I’m interested in knowing that level; let’s go back to here. London halfback; I’m wrong; these are not single prints; this is during London; geez, my bad. You make mistakes, and you catch them; that’s what you do. Now if that would have been an RTH session, those are single prints. So if anybody caught that, good job. Took me a little longer to get that 30-minute fair value gaps; that’s what those are. And we got another 30-minute fair value Gap over here; turn on my level here; let’s put all these in a folder; we going to call this ‘M contract 30 minutes.’ Okay, so we’re going to call this a middle backside; needs to be orange. All right, so we’ll call this front side Wick, and then front side base; that’s what I would call those 30-minute fair value gaps. We got that, boom, boom, boom, the London low I know is marked so I can just turn that on. So my low time frames, that’s perfect, perfect, perfect, perfect. So when we open up in 45 minutes, we’ll see where we open up, and do you got to remove anything. So I call all these the 30-minute levels; nothing, nothing, nothing. And now what you would do for thoroughness is come to the M contract; I’m keeping the volume here that way I know it’s on the M contract. And this is where you like, okay, where the daily, like the daily low here is the 1425 like we did in the other video. So I’m going to come here; I’m going to get rid of this 30 minutes; I’m going to get rid of this 1420 five; that was this guy here. I think that was that low here on Tuesday 14 25; this is Tuesday. So let’s come in here, put a 1425; 1425. So one, yeah, three days ago, 2425; geez, George, 2425. That makes more sense; so let’s go 2425. We’re going to call this M RTH low; we’re going to make it white because it’s informational and that’s the first little adjustment I want to make there. Let’s bring this in on this low; this is a London low here; I want to know that it’s at 21. Okay, I’m going to come back here 21 M London low. That way, I know there’s a little adjustment; there’s a little change; there’s a little difference. Um, let me bring this in, and I think I’m interested in this low too. 19 M RTH low; it’s 19. Let me double-check; come on, magnet tool; you’re killing me. That didn’t seem right; all right, there we go; let’s make sure I got it. 1225 is the level that makes more sense. 12:25. All right, I think that’ll work for me; these are the M adjustments; I’m going to put these in the low time frames because I want those to come on every time I turn on a low time frame. All right, I think that’s how I’m going to start the trading. Plenty of lines; now I got to go back and play with what I might want to do with the strong levels, so I don’t know. I think this is what I think I’m going to do; who knows, I might wake up in the morning, guys, and go you know what? I’m not going to do the adjust back adjustment; I’m just going to let the contract jump up, and it’s in a new area and trade that. That’s how I’ve always done it, but I’m feeling the little bit of a need to do something a little different maybe but just say you know what? I’m going to keep my levels I’ve got down here and play this as it develops. But I wanted to at least do the um adjustments, and I will chew on all of this again. Yeah, sorry, I’m thinking as I’m recording this, you know because the truth is we’re trading the M contract now. The M contract levels are what’s most important, but the truth is I could still trade my regular old levels, take this adjustment off, and on those last ones where I put M contract adjustments, I could put them in their own folder, and that way I would know where those M contract adjustments are. But like here, like this is an MTH low; well, that’s in the middle of a London session; like that doesn’t make a whole lot of sense to me. But if I keep the adjustment on it, I go okay, that makes sense now because some contracts were traded there. Not many, but some were. Now, the truth is we just trade the levels as they develop when I make a trade in the morning when we’re on Zoom. I’m making it based off a one-minute three-minute chart of the current um level development given the recent highs and lows. So do I really need to know down here any of these levels? Do I really need to know that to trade Monday? No, I do not. You would only really want to know it because if you were short, you’d like to know that you’re coming to it because you got to expect price to bounce off there, and maybe you take some contracts off, maybe you give it room to bounce, whatever. That’s the only reason I really need to know it. But as far as my entries, I only need what’s happening right now and then recent highs and lows, and we make decisions based off Trend, where are we at, all of those issues. So if you’re a member of mine, I would love to hear your feedback on this, and if you’re not a member, check us out at micr trader.com. Stay Green, my friends, and to learn more about our group, go to microstrader.com.”