Preparing ES Emini and MES Micros Traders
To Trade In Our S&P Trading Room

Transcript

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

Helping Futures Traders Via Our Core Strategy Academy Training Program and Futures Trading Group – The Best Emini Group IMHO.

“Welcome to the AM briefing video presented by microstrader.com. Together, we trade better. Happy Friday, Nonfarm Payroll Friday! And not only is it Nonfarm Payroll Friday, it’s the day after a 100-point drop, where the risk of a short squeeze is high. Plus, Friday rules. What are Friday rules? Friday rules are:

Do not give your week back. Do not give your week back. Trade with a smaller daily stop limit. If you’re used to having a maximum daily stop limit of, say, 500, today make it 250 or risk a percentage of your weekly profits. Let’s say you’re up 50 points for the week, maybe you risk 10 today. Small. I want you to go into the weekend a winner. Do not give your week back. Friday rules are in full force on NFP Friday.
So, yesterday I gave a video and the title of it was ‘To Trade or Not to Trade Parabolic Moves, That is the Question.’ So today’s tip is: I want you to really think about how you want to handle parabolic moves. Do you want to counter it, or do you want to just say, ‘Hey, I’m staying out of the way because I am not willing to take this super high-risk trade?’ There’s risk in following, just jumping into the trade. Hey, I’m going short. Yesterday, that would have worked. At any point, you could have gone short. You would have done just fine. But is that a repeatable strategy over time? No, it’s not. What about countering this move? Is that a repeatable strategy? Nope, because you have these days that it just keeps going. You have to have rules in place that stop you from hurting yourself on these outlier days because they do come and they will rip your face off if you have not fully thought of how you handle parabolic moves.

So, let’s spend a little bit of time today on trend lines. So, we had this 30-minute trend line here established when we hit the all-time high in the overnight session. And it’s interesting that basically that’s where we played and stalled, and then price gave it up. Price gave it up. So let’s look at the other side. So, this is the downward sloping. What about the upward? So, we had this trend line, and then you’d say, ‘Well, did we go a little parabolic?’ Yeah, I would say that. And then, is there another trend line in here? Absolutely. And especially if I dial down to the three-minute, we talked about this in the video yesterday, but for sure when the news event came out on a smaller time frame, you would say, ‘This is when parabolic. You don’t short this. You don’t counter this.’ That is really the way to say it. Don’t counter a parabolic move. But then eventually, one by one, those levels were knocked out for this down move. And these trend lines are just to give you a small guide. It’s always telling you what’s happening on the left side of the chart. So, when we were, I’m going to go to a five-minute chart, so when I was over here and I have that trend line going through there, I know exactly what that means. I know what the chart looks like to this side. And that’s very helpful in trading.

Okay, so let’s scroll down. What kind of trend line have we established here? Now, basically, this, right? And let me turn on my strong levels because there will be an update today. I have not updated it yet, where members get the updated, but some of the levels I’ve kept, some of them I have tweaked or added different notes to. So, at this point, you know, you can almost come in here and say, ‘I think this might be our trend line.’ It’s just giving you a general idea where you’re at right now. Price is sandwiched between this trend line and this strong range. Will it get over it? I don’t know. It’s NFP. We will see.

So, in the overnight session, London is stacking on top of Asia, and we appear to be lading up. But we’re right here at this strong range. So now, let’s talk about the strong levels. So, the M contract low is 5157. When we switched over and started trading the M contract, and there’s an influx of volume, that low is 5157. I would have that on your chart. And then we have this 72 strong level that hasn’t been tested. Again, be careful with shorts above this. Remember, we had two strong levels here. I removed one of them, kept this here, removed any of the namings over here. But if we get above here, I am for sure wanting to be long. If we get up over this, it’ll be interesting to see what happens at this cluster. So, if we get above this, I’m for sure going to be… I could even have called this the bull-bear line. Okay, if you want to call that the bull-bear line, that’s the bull-bear line. No problem. What level is that again? 4475? I think somewhere in there. It’s fine. It doesn’t need to be exact exact for that purpose.

So, are we going to just bounce between here? And the other thing, here, let me bring up my… This is kind of the folder I would use for my AM briefing. So, RTH IB low, taken yesterday. Now, we have some other levels right below us. I’m going to remove that. Sometimes I duplicate the levels because I just want to be sure I marked it, and then I turn on all my folders and you got marked twice. That’s okay. It doesn’t bother me. So, we have the M contract low and we have a daily low here. How sweet would it be if NFP came down here, grabbed this level, overextended just a little bit to grab the M contract low, and then came back in? Ooh, wouldn’t that be a thing of beauty? I have no clue if that’ll happen, but it’ll be interesting to see. And if we open up and we just shoot straight through here, I would want to see a little bit of acceptance up here, and then I would be looking for a possible long. But what do I know? We’ll see how price unfolds.

What are some of these levels I have above me? I have these levels here. Let’s see, I’ve got the all-time high in the Asia overnight. We have the London overnight high. We have the RTH all-time high. I like to know what was the all-time high in the RTH session. In the overnight session, it’s about 11 points higher. And then I have another RTH IB high in this range. That should be on your chart also. Half-back for yesterday is right here at this 5175. So, the half-back in this level here is like a range. Can we get back over this range? Can we get back up over this level? Then can we get back over a half-back? But I would treat the half-back in this level as a zone or a range, my humble opinion.

If you’d like to trade with us live, check us out at microtrader.com. Stay green, my friends. And to learn more about our group, go to microtrader.com.”