Range Rules: How To Trade Choppy Sideways Markets
For ES and NQ Futures Traders

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.

“Well, good morning! I’m sitting here early, watching price action. You can see that I am here early, and in fact, that’s… I don’t want that on New York; I want it on Chicago. No, let’s put it on New York. So yeah, it’s 5:30 in the morning here Central, and it’s 6:30 in New York, and I’m watching price action here. And what am I looking at? Well, I do like to draw some trend lines. So the overnight session’s got this primary trend line, then price went a little more aggressive, and then price went parabolic. And now it’s just kind of basing out, and I just keep adjusting this for a little while, and then eventually, I’ll stop adjusting it because if price kept going this direction, it’s going to match up with that line.

So why do I look at that? Well, I know not to short this. I know not to short this all-time high is here. We’re within seven points of an all-time high on ES. I call this a double parabolic move because you have this normal trend line here. Um, let me go back. I’ve got this normal… whoa, I’ve got this normal trend line here, and then this is kind of a normal one too, but then it goes this, and you stay out of the way. You’re either long or you’re flat; you can’t short this yet. We need it to break several things, at least two things, to the South to entertain a short. Or you could play the all-time high as a place for a small short, of course. We have PPI this morning, so I wouldn’t be shocked if it’s saving it for the PPI. But I like… well, this is going on; let’s watch price a little bit.

So I have on the overnight range here from the overnight to where we’re currently at, where we took out… um, yesterday’s high, which is amazing. We seem to struggle, and here we are, taking out yesterday’s high. Unbelievable. London has all the fun lately. So here’s all the indices; here’s the halfback of yesterday. Everybody’s in the upper distribution. Um, Russell and ENQ bounced off the high; DAL’s the weakest, it seems, at this moment. But it would seem like ES wants this, and look at the all-time high for Dow and um, NQ (MNQ). I am on the M contract for all of them.

Let’s go back. Let’s come over here and look at NQ (MNQ). Same type of situation. Um, to me, it has this primary trend line, and then it went more parabolic. So just watching it, once again, I know not to go short. You don’t go short on this side of a parabolic line. You just don’t. You wait, you be patient, don’t predict, “Oh, that’s all it’s going to do.” It might. You might get lucky. You won’t do that 10 out of 10 times, though. And the problem is, even if you did that nine out of 10 times, it’s the 10th one that probably, most likely, hurts you.

All right, so here, just the overnight session, I got this visible range profile done over here. You can tell we’re packing in the volume here. You can tell we’re packing in the volume here. It’s not like the big volume was down here, and this is super thin. Now, it gets thin here in this area. So when price wants to come down, it could be a pretty nice, rapid move, which is great. So I’m watching for signs of a breakdown ‘cuz I’m interested in a long here. I’m really… I’m interested in a short here, back into the deeper part of the overnight range. But boy, is it packing in some volume.

Let’s throw on the little uh… pocks. You can see there; it matches up. So this is its happy place. I don’t like to short or long right here at POC. It makes no sense. If you’re going to trade the edges, which makes the most sense, this is not an edge. Now, it’s the edge of the overnight range, but boy, look where they’ve packed in the volume. So you’ve got to respect this, plus news in two hours. So if I don’t get a pre-market trade, that’s okay. Sometimes I do, sometimes I don’t. Yesterday, I got an amazing pre-market trade. It made my entire day, actually. And then I traded small the rest of the day and did very, very well. I had 18 ES points yesterday, so that was really good. I’m up early this morning. I said, “Let’s watch some price action. Let’s see if we can get an early trade.” And I love when I see price go parabolic because then I know that there’s a good chance it’s going to parabolic the next way.

Although it is Thursday, news events… Thursdays do tend to be trend days more than chop days. Yesterday was a beautiful chop day. Um, I told the guys early on, I said, “We’re going to take out a low. We’re going to take out a high, and we’re going to finish at POC.” And it’s very difficult to trade in between, and that’s pretty much what we got. I was so disappointed yesterday, though. Let’s go back. So yesterday, mainly this chop zone, and then we went up here to this upper zone, and I am just waiting for this to happen. And I was short at least three times up in here, and I went, “Okay, I’m done trying to chase pennies. I’m up really nice. I’m done.” And then you got this major vomit candle taking out the low. I’m like, “Are you kidding me?” So here’s the IB range. It took out the IB high, then it took out the IB low, and it finished at POC. That was so beautiful. So beautiful, man. I just couldn’t believe I missed that entire move. I’ve been short three times waiting for that to happen, at least three times.

All right. I like… I want to see the visible range here for ES. So let’s go take a peek at everybody else. As anyone tip in their hand? Let’s say, for example, DA had done this. All right, that might be something. Or what if DA did that? That would be something. I’m looking to see if anyone’s leading the way. We’re still all in the upper distribution. This is all still bullish. I think I’m starting to get sick. My wife has been sick for the last week, and I think I’m getting it. I can hear it in my voice. I’m starting to cough.

Great. So we got our little all-time high setting right up there, keeping it in the visibility. I’m trying to keep the overnight low and the all-time high within visibility. Is that a break? No, because I consider all of this a range. Really, this range is more important than this trend line. This trend line is just there to remind me, “Hey, buddy, you’re in a parabolic move.” I could even just slide this over here, just as a “Hey, buddy, you’re in a parabolic move.”

One thing we don’t do in our group: we don’t go short on blue candles. Down candles, you don’t go short on. On down candles, we only go short on up candles, and we go long on down candles. So that candle is blue, which is down. I can’t short. The only thing I can do is go long. You’re in a range here. The last thing you want to do is go short there, in my humble opinion. You’re in this range. It’s got this huge magnet up here. Most likely, this thing wants to go there. Why am I shorting in a horrible trade location? If I’m on a short, you go short up here. Now, at least I’m in a good trade location. If I go short here and price goes back up, I have to be right 100%. At least here, I got a good trade location. This trade location is horrible for sure. If it’s going to stay in this range, which I bet it does, look how much volume it’s packed in. Unless these guys that went long decide, “You know what? We’re not getting up there. Let’s get out, boys.” Then it’s going to tank. And if it, let’s say, did a big 20-o down candle, oh well, I missed it. Who cares? Like yesterday, oh well, who cares? Wait for the next trade. We have a high probability system. We wait for the next trade. Some days are easier to trade than others. No big deal if today the hard day. You trade the first hour and a half, and you’re done. You move on.

So I’m comparing what’s happening here to NQ on my other chart. Looks like we’re… looks like we might be rolling over. This is NQ (MNQ). Looks like we might be rolling over. Doesn’t give me a reason to go short. I can’t go short like this until it clearly starts breaking things, and then I’ll reanalyze and see if I want to go short. This is a long here, in my opinion. I’m looking at this thing, and this is long. This is a great tra… this is a great position to be long. If I was to go long, I’d want to go long closer to here. You’re like, “Oh, it looks like it’s about to vomit.” Yeah, it might. I also got this huge magnet up here, don’t I? And what have we done? We’re in a double parabolic move. The right trade is long here. It could vomit through it, and that’s okay. Welcome to trading. You do take losses. But I want a good trade location with trend. If I got a good trade location with trend, I’m going to win more times than not, and I’m also going to be given the ability to get out at break-even 98% of the time. That’s been my experience with how we trade. Good trade location with trend. If it goes against you, 98% of the time, you’re going to be given the gift of break-even because this… the way the charts work.

All right. We’re just watching price here. All right. They going buy it up again. A lot of people up here want to get paid. A lot of these people want to get paid. And if they all decide to get out at once, like yesterday, you’re going to have that monster candle. I want to be in that short, but I’ve got to be short up here, or even higher. I got this monster magnet up here. I cannot ignore that. Price is doing what it’s supposed to do here. It’s going back up. Now, could it come to POC here and then vomit? Absolutely. At least this is a better trade location. It’s a little higher up in the range. But if I use my little range tool, I use… I want to be sure up here in the red area, which is actually right there at POC. I… I don’t consider that a horrible trade location. Let me put that back. But this green area is where you want to be looking for a long, assuming we’re going to continue a chop sequence, which happens most of the time. And what… and what’s the trend? It’s up. The higher probability trade is longing in the green area.

Now, this is London, and how many times do you see London take out its own high and take out its own low, and then take out Asia’s low? Like, it can be wild. But right now, I know I’m in basically a double parabolic move. I really can only be looking for longs until it starts breaking stuff. You know, like, let’s say it’s… to go up, I would just move my line to here. Let’s say that thing went up. But right now, I’m just going to kind of move it out of the way. It doesn’t really matter. It’s just there to remind me, “Hey, buddy, you’re in a double parabolic move. Do not be jumping the gun and going short because you think you know where price is going.” You don’t know where price is going. You don’t know. And this monster magnet that cannot be ignored up here, this all-time high…

All right. It’s flirting down here. Didn’t get bought right back up, did it? Very interesting. But look at this one. Let’s say you went short here. Boy, you got your butt handed to you. You don’t go short down here until it breaks stuff. I’d much rather be going short up here. And if it broke out, I’m… I’m pretty sure, because of my trade location, I can still get out at break-even. Right here, I don’t want to do anything until I see it break stuff. And I’m going to tell you, NQ is the weaker, so if I’m going to short, it’s going to be off NQ. NQ is weaker.

Now, NQ is right here at the bottom, right here at the bottom. This thing should get bought up, and there’s your move up. NQ’s has more evidence of leading down than ES. ES is more really straight across. Let’s go back to NQ. As I said, NQ (MNQ) is the weakest. It’s the one that I would want “To short if I could, let’s check everybody else out. Now, Russell’s about to hit its VWAP, which typically might give it a reaction, although this is more the redheaded stepchild. Um, DAL still has a way to go, so there could be a nice drop there, but it very well just might get bought up because that’s what they do. Let’s go back to NQ here. I’m interested in the NQ. I have actually shorted NQ (MNQ) once this morning. Um, I shorted this right here for this drop, um, but I kept my stop at like, uh, one point, and it got me out, so whatever. Um, I felt like it was up here, barely in the red zone, and it’s the weaker, and here we go, getting bought up, which is what it’s supposed to happen. You don’t just buy this; it has to break it. Going short anywhere down here in the bottom of this range is not healthy for your account. It could work. Um, let’s kind of throw in a little range thing here. The ideal location to go short is in the red; the gray is kind of, uh, you’re in the middle of the range; this green area, it’s better to look for a long than a short.

Now, it left a fair value gap; it left a volume imbalance. This is looking like it wants to break, but it hasn’t broken yet, and all I do is I adapt this out here. Still telling me, hey, you’re in a parabolic move; it’s better to be looking for longs. If you’re going to short, you better be in a great trade location. This is not a great trade location for a short.

All right, let’s go back and check everybody else out. Let’s go to ES. Okay, so it left, ES left this value gap here, and on its reaction up, it didn’t fill it, which is interesting. Still doesn’t mean I can go short here. This is still all longs here, in my humble opinion, and trust me, I’ve never seen a short I didn’t want to take, but yeah, very nice, had its reaction coming back in, very interesting. I’m going to go and remove this; I don’t need it anymore. Let’s throw on the visible range profile on NQ as well. So yeah, it packed in volume up here, too. Let’s go to ES here. How big is this overnight range? ‘Cause yesterday we had a tiny overnight range; usually, it’s about 20 points. This one said 17, not bad, a normal range. Let’s check everybody else out again, flirting with it, VWAP, that could have it a nice reaction. V be com to yesterday’s high could have a nice reaction. Like I said, we’re in an area where longs make more sense than shorts.

Now, I wish it already went up there and got that all-time high. All right, this is NQ (MNQ), beautiful place for price to be defended. It’s better to be looking for longs than shorts here. I’m not doing either; I’m just watching. Take a peek at everybody else, come back to ES. You know, you got PPI this morning; this thing just very well might base here. You got a lot of people that want to keep this price up here; they sure do. And what do they do when the price gets a little cheaper? They buy more. We don’t use that philosophy in our group; we’re not… we’re different traders. I don’t add to losers; I try to add to winners. And that’s one reason I had such a good day yesterday. Let’s go back over here; I’ll show you. Um, so this, I took this short here and participated in this down move and kept adding and did very well. I had the winners. Still, in a parabolic move, we’re on ES; it’s left this fair value gap. Do mean a whole lot ‘cuz one candle fills it up, comes back to POC, and you go, okay, we went back to POC. Yeah, that makes sense. I just can’t go long short here; this is a better long position. You know, we look at this chart like a chessboard. Where do I want my pieces? I certainly don’t want my short piece right here. No, sir, it might work today, but long term, it’ll hurt you more than it’ll will help you, so I can’t do it. Plus, if you go short here, you’re basically predicting, hey, we’re going to break out ‘cuz that’s the only way you’re going to make money. You are predicting the breakout. That’s a hard business; that’s a hard business. It’s easier just to wait for bounce levels; you play the bounces. Once again, this is the ES chart. Let’s go take a peek at NQ again. Still hovering down there; it had a little reaction, but it’s hovering. Now, the thing I don’t like about NQ is it didn’t have that far to drop before lots of things can bounce price back up. I… I don’t really like it. I wish… it, so this area here compared to this area here, so I’m looking at this distance; it’s very small. Look at this on yes, much bigger distance, but this is stronger, so you know, pick your poison. As I said, down there is a better place to be looking for a long than a short. I’m not doing anything an hour and a half before PPI; I’m just watching. So London is stacking on top of Asia; we got PPI. There’s the gap fill back to POC; um, defending beautifully. Like I said, you don’t want to be going short here; it’s a horrible trade location. If you wanted to short POC, I kind of maybe get it, but don’t, at least, and a better trade location than shorting here. You short here; now, you’re screwed, and you got this monster magnet above your head, and anyone that went short here saying, oh, and now they’re getting out, so it’s going to send price up higher. It’s not worth it; at least if you’re going to short, have a great trade location or required to break stuff. It hasn’t broken anything; we’re still on a double parabolic move ‘cuz this thing now, as I said, if it goes up, you can easily adjust it right there and go, yep, that makes sense. I’m in a double parabolic move; the play is long or flat. I’m choosing flat. I mean, I’d love to show you a wonderful trade, but probably not going to happen. I’m not interested in the long here; I’m not really interested in the short unless it really broke something. I wish POC was down here; let’s say POC was down here, I’m a little more interested, but they’re packing in volume up here. These guys want to get paid; they want to get paid. I’m going to get some coffee; I’ll be right back.

Back for all right, price did exactly what it was supposed to do, which is always fun. Did it do it on NQ? Let’s go take a peek. Sure did. Better to look for longs in the green area, shorts in the red area when you’ve got a chop zone. Pound in the volume in this area. As I said, you could have taken a short there at POC if you wanted; at least you would have had a good trade location. You’re now in the money, so you know, you put your stop at one tick, in my opinion, and you just wait, expecting 90% of the time you’re going to be taken out. Why? You’re counter, you’re double parabolic counter. But at least you had a decent trade location where the odds of getting out at break-even are greatly increased. Going short here, then going here… Here you had to be perfect; you had to be exactly right. Here, I don’t have to be exactly right because I have a great trade location, but I’m double parabolic counter, you know what I mean. You don’t let this thing go against you and you add, then you add, then you add. No, no, no, no.

No, all right. NQ looks like it’s starting to break down. Let’s go take a peek at NQ. See if that thing is going to get bought up. Like I said, NQ is the weakest. Let’s go back and check ES. There we go. All right, so I took this trade. See, it was breaking, and I said it’s time to take this short. What I’m going to do, I’m just going to spread out my orders here, and if it comes back up, it’ll get me out in the profit. If it keeps going down, I’ll continue adjusting there, no problem. What do I care? Now those final ones, so I’m just going to move him up a little bit to be the greediest. He’s now my lotto. As I said, the bad thing about NQ (MNQ), it doesn’t have a far to go before it’s going to hit things that make price bounce. So I’m actually, well, it’ll get me out there, maybe. It’s all good. I expect it to get out. I saw money, took money, took, spread out my orders, of course, small, just some little MNQ contracts, but you know, made a little something-something there. Very fun. What I didn’t like was this: when I flipped over here, I just didn’t have time to say it out loud. I didn’t like that. I was hoping that would be doing this, but we were not all on the same train here. And of course, when we flipped over here, ES was not really participating, but as we pointed out several times, NQ (MNQ) was the weaker. But NQ (MNQ) didn’t have as far to fall before it bounced back up in the face, and that’s what happened. No big deal, took a little scalp, you’re out, small pre-market, blah, blah, blah, blah. And there we go, beautiful, beautiful, beautiful, beautiful. One little trade, you know, net-net, you know, I’m only up 10 bucks, but you know what, who cares? Who cares? Base hits add up, base hits add up. Wait for my next trade.

So I was waiting for a good break, and then I get in, and I’m just doing a little scalp. And if it kept going, going great, and if it doesn’t, who cares? Who cares? Let’s go back to ES here. ES is still strong, man. ES has been relentless. ES is being relentless. All right, this is NQ (MNQ), this is everybody. Look at Dow. I mean, all-time highs are within visibility for all of them. Look at this, hanging at POC, man, that’s what you expect. Made it back to… Puck. ES is not participating in any kind of down move. Neither is, uh, Dow here, but DA is still under yesterday’s high. It still has to battle this. Only ES has gotten above it. ES is strength here. Very difficult to play counter on that. Much easier to play shorts with NQ (MNQ) in this scenario. I just want to see it break something. Look at N here. I still wouldn’t be shorting this up here. This is not… No, it didn’t even get all the way down to the bottom of the range, and it got bought back up. No, thank you. It is strength. Don’t short that strength. You don’t need to. There are easier trades. You just wait. If I had been a little faster, I would have locked in a little more money on that runner on the NQ (MNQ). I was like, you know what, this is C money, take money area. This isn’t trying to give me a big drop runner because, number one, I didn’t think NQ (MNQ) had far to drop before it was going to get bought up, and that proved to be accurate. So I could have been a little more aggressive in my take profit on my final contract, but I really look at that final contract as the lotto. It’s paid for, it’s paid for. It’s not going to lose me any money.

Look at the strength of ES, pounded in this volume up here. My goodness. I much prefer to look at volume based on price than time. Look at, e, I, me, Dow here, about to make a new overnight high, barreling towards yesterday’s high. So when I look at these, I see upward slanting VWAPs. Okay, I see stacking overnight sessions, and we’re in the upper distribution. This is all bullish. Long or flat is the play. Short as counter, small, see money, take money, and only after it breaks something or have a great trade location. Just watching. Coming back over here to NQ (MNQ). It’s still having this evidence of leading down up here. I don’t think I have another short in me for this ‘cuz it did it’s break, but it couldn’t keep going. I was hoping it would go at least to VWAP. I was hoping that move would go there ‘cuz then I would probably cap my, um, be aggressive in my take profits there. No big deal, there’s another high probability trade around the corner.

You know, and if you get a break on NQ (MNQ), you know, one, I, you know, this past week, I had one micro, I made 250 bucks in the move. That stuff adds up, guys. Don’t snicker at micros. I’m not saying you are, but you know what I mean. A lot of egos in this industry. Oh, you only trade minis, and 10 is the number, and ah. All right, I’ll be right back.

For all right, look at ES marching up. I’m on top of my coffee. The play is long or flat. Respect that, and you’ll do fine ’til it breaks something. NQ (MNQ) did break something, but it got bought right back up. Why? Well, everybody’s going north. Everyone is showing signs of strength. Not as strong as ES, but it’s not like, it’s not like two of the indices are at yesterday’s low. No, we’re all up here at the upper distribution, and ES took that out with a vengeance. Last thing you want to do is short ES and strength, any of them, to be honest. But we mainly trade ES in our group. Like, I’ve only recently started to dabble with NQ (MNQ) more.

Pounding in the volume here, these guys want to get paid. Now you are in the area that now is in the red. When you’re looking at this, you are in the red area. I don’t really have a level there that I would want to short that I could defend to my traders in the group. Plus, what do we have? I know I sound like a repeating record, but you got this monster magnet up here. ES looks strong. Everyone’s above their VWAP, upward slanting VWAP sessions are progressively going up. Long or flat is the play. Pardon me, there’s nothing up here on NQ that I would be interested in shorting either. So I’m just not interested in shorting until I’m presented with the opportunity where it’s breaking, and you just make a little scalp. Look at Dow making new overnight highs. Russell’s still not having a part, but like I said, this is the redheaded stepchild. I don’t pay much attention to it, but if I didn’t have it on my chart, I know I would be still consulting it, so I might as well have it on my chart. These are the two I’m mainly interested in. These two can move together without needing these two, but I love to see all three of these on the same page. That really gives me confidence to leverage up and be with the trend. This right here doesn’t really give me a whole lot of confidence to want to be long, so I’m just watching.

Look at that, traversing the entire range. As we said, you want to be looking for longs down here. If ES would have went a little lower, I would have probably taken that long. Why? Because it’s the strongest. I’m not going to take it long on NQ (MNQ). I would have been interested in a long here, but I would have wanted it a little lower. No big deal, there’s another high probability trade around the And I’m going to be okay, so it’s at one tick. I love my trade location; we went short here, love my trade location, and now let’s see if this thing can get a move on. There’s no sense in me trying to capture one point right here; that makes no sense. I’m in a great trade location. Now, let’s go take a peek at NQ. Look at this. Okay, also, what did I have in confluence? Dow hitting this high. Now I expect to get out; I expect it to come and get me out at break-even here, but if for some reason it goes, I’m going to be in a really good trade location, and now I can play good chess and manage my trade. What if this is the high before it drops 100 points today, do you know what I mean? But I expect it to get me out. ES is so strong; it didn’t hit the big magnet up there, but at least I had a good trade location. Small, I was counter, double parabolic counter, so small, great trade location. How much better was it to not short here when it looks like we’re going down versus shorting here? It’s a big difference. Now, I did have this big magnet here; I was going to suffer that. I was going to suffer much. It’s 1 MES Micros Futures Contract, six points. I’m willing to take 10 points, no problem with 1 MES Micros Futures Contract, 50 points, 50 bucks. What does that do to your day? Nothing, it’s no big deal; you trade, it’s okay, but give me a good trade location, at least something I can defend to my own traders. So, back to POC. Are they going to reload? Very possibly. I mean, I could move my stop in here and capture two points, but then I want to stay in my trade location, and it wasn’t worth doing more than one contract. I’m not going to do multiple contracts in this scenario, just one. All right, let’s go check over here. Kind of wish this had had a little bit bigger reaction, and NQ’s obviously coming back in. Russell’s been weak as well; I don’t trade Russell. Okay, back to the bottom of the range. It’s back in the green, where it’s better to be looking for a long than a short. It went up here to the red, where it’s better to look for a short. So, longs down here, shorts up here, but now when I take everything into consideration, ES took out its liquidity up here. These guys got paid; they can get out if they wanted. They know in 1 hour is PPI. I mean, what, you know, what do I know, what do I know? And if it gets me out, what do I care? It cost me nothing, and I like, man, I had a great trade location. Now, typically, when I go counter, I like to follow it 50%, so I could have captured one point, one point, you know, if I wanted to. You pull it in here to the one point, say, ‘All right, I’ll capture one point. I’ll do 50%.’ You do either way; it’s nice when you can do multiple contracts, and you take one off at a point, one off at two points, you keep one back, you feel like your trade got paid, you know. But in this case, I like my trade location; let’s pull it up, and if it gets me out, what do I care? We have another high probability trade around the corner. How well have we been seeing this? If you’re a member of mine, you’re not shocked. If you’re not a member of mine, hopefully, it’s kind of like, ‘Wow, I want to learn what these guys do.’ Pardon me. All right, come on, let’s break it down. Let’s go, let’s get down, drop and give me 20. Let’s go, where would be 20 points? I’d like, uh… I don’t think I’m going to make 20; I should make 10 if it goes down. I would think I could make 10. We’ll see. It’s at its happy place; it’s at POC. Let’s go take a peek at everybody else. I’m looking for a reaction there. I’d love for it to get under [ __ ] and then look where NQ is, back. Very nice. I’m possibly in a good trade, but I’m very counter. I’m double parabolic counter. I expect it to get me out 90% of the time, but I had a great trade location, so I’ll take it. One hour to PPI, so this will be my AM briefing. Hopefully, we get a nice move here. There we go, there we go. Come on, let’s go check everybody else out. Let’s go check out NQ. Nice. Come on, now it’s going to have a reaction, most likely when it gets to there, which would probably affect ES. Come on, there, three points. Are they going to defend it again? I bet they don’t. You know what, I’m going to go and pull into two points here. I don’t mind capturing two points. I feel like I got paid for the risk. I feel like it shouldn’t go back up here, so no big deal. I’ll take it, and if we get a good move down, great. If we don’t, hey, I take two points. I did a scalp in a great trade location. I’d have done better if I could have taken a long, but I needed it to go a little lower for me. If it gets me out, that’ll be the end of this video. I got to render it and get it on YouTube and on my website. So, by the way, the archives of all these videos are on my website at microtrader.com. If for some reason you ever wanted to go back in time and say, ‘How has this guy predicted price in the past?’ because in the mornings, I give, I give what I call strong levels. I don’t have any new ones to give out today; I didn’t examine it like that today. And so, ES is strong, ES is strong. See, see money, take money when you’re counter. I don’t mind two points. You know, what’s the difference between 10 bucks and 100 ES versus MES Micros Futures Contract? But double parabolic counter, I’m just not going to go ES. I’m not afraid of ES. I’m not afraid of doing 30 MES Micros Futures Contract, 40 MES Micros Futures Contract. In fact, I think you can dial in your leverage better by doing MES Micros Futures Contract. Oh, what about the commissions? Who cares about commissions if you’re profitable? It doesn’t matter; it only matters if you’re not profitable. All right, here comes the move. Let’s go. You know, and sometimes I feel like, you know what, if I remove that line, price can go through it. So, right here at POC, it’s a tough place to try to be in a trade, of course. I was short here, so that’s, but my stop is here at 2025, right there’s my stop, the white line. Let’s make that line red, so that’s where my stop is. Come on, let’s go check everybody else out. Getting under VWAP, good sign. Coming to its VWAP, that could be the bounce that ES has a sympathy bounce, and it gets me out. Oh well, I’m comfortable with my trade location, and I’m comfortable with two points, and that would be my final trade before the news event. Let’s check NQ out. Let’s go back to ES. They’re not ready to give it up yet, are they? If you short strength, which you probably shouldn’t do, but if you short strength, have a great trade location and be willing to take the L and not add to your losing trade. You know, you were double parabolic counter, take the L, have a paper cut stop loss, have, you know, one point, like, ‘Oh well, I tried it. I’m out, didn’t hurt, it’s okay.’ And then if price moves your direction, add to your trade. Hopefully, that’s as high as ES goes right there, and if it gets me out, I will be done, and I’ll see my traders on Zoom. Go ahead, one more tick, get me out, so I can get to the next part of my morning. Come on, if you’re going to drop, drop. Let’s go, get a move on. I know I’m short in strength, so see money, take money. I don’t mind taking two points. Me, I think the most I was up was three points. I don’t think it ever got to four points. See what happens here. Like I said, I thought that was going to be the high tick, but what do I know? I don’t know, so you just make the best educated guess based off historical data, and you roll with it. All right, come get me. Unbelievable, got within three points of the all-time high. Let’s go check everybody else out. Is anyone having any writing on the wall? No, they all had their proper bounce, proper bounce there, which gave me some additional confidence to take that short in a good trade location. I’m going to retop my coffee. All right, we’re still in, huh?

Sometimes that’s a great thing to do; you’re in a trade, just go to the bathroom, go get you something to drink, walk away, go to Walmart, especially if you’re in a great trade location and you don’t want to micromanage your trade so much. Just walk away. See what’s going to happen here. Come on, hook a man up for a good trade location trade. If you noticed earlier, when we were up here, I said it’s either long or, and then I didn’t finish my statement, I believe, ‘cuz I knew I was short. So, when you’re counter, go small. Know what you’re willing to lose and lose it. It’s no big deal; there’s another high probability trade around the corner. And if you never take a counter trade, awesome, you’re probably better for it. They just aren’t ready to take this thing down. I’m going to let it take me out at my two points, or it’s going to drop down, and I’m going to follow price. Sometimes the best money you ever make is doing nothing. I know I’m counter. I expected it to get me out at one tick. I’ll be honest, 90% of the time, I expect that. Let’s take a peek at everybody else. Okay, come back to ES. That red line is my stop. You know, just to show you this, let’s go back to NQ. Know I told you NQ is the weaker of them, and look where NQ is. It’s hanging out below this. It’s the weaker, but the strength of ES is keeping everybody up, in my opinion. Forty-five minutes to news. Here we go, come on. Know you could do a couple of things here if you wanted. For example, you could change your stop to a trailing stop here and just walk away and go, ‘Okay, whatever additional I get, great.’ Um, you can just stay here and try to play chess and see if it can finally break. See, if ES can break, it’s got a pretty decent little move here that it can make. You know, you lock in three points here and go, ‘Hey, another, you know, they add up, even if you’re trading small.’ And which is really the reason why I called my group Micros Trader. Can I teach you to make 10 points a day with a micro? It’s just 50 bucks; it’s 50 bucks clicking a mouse. It adds up. I mean, made 10 earlier, I could bring this into 15; now I’m at 25. I’ve made half my daily. In fact, let’s just do that, just for the sake of, that’s half my daily goal. Minimum, I want to make 10 MES Micros Futures Contract points minimum every day, and then some days, like yesterday, you make 18 ES points yesterday. Heck, one day last week, I made 98 in a day, and then there’s a day where you make, you’ve seen them if you, if you’ve been around, where I make two MES Micros Futures Contract points, and it’s okay. I’m not chasing a profit goal every day, really, but I believe I can make 10 Futures points a day. If that’s ES, that’s 500 bucks. If it’s MES Micros Futures Contract, it’s 50 bucks. There’s no difference other than your ability to handle that difference. All right, so I’m happy, locking in three points there. Now it’s turning into the green part of the range, where it’s better to look for longs than shorts. It’s more likely to be bought up. Let’s go take a peek at everybody else. Okay, nice little bounce coming in under VWAP. We’re getting NQ is getting to VWAP, where there probably will be a bounce. It gets me out at three points; that’s okay. One more tick and get me out, so I can render this video and get ready for the my trading. Well, I am trading, but you know what I mean, getting closer to the news event, 42 minutes away. Boy, they’re just pounding in that volume here. They, it is price’s happy place. Where’s six points from here? Ah, wrong tool. I want to know where six points is. Okay, six points is all the way down to here. Coffee is good this morning. Let’s go look at NQ. Look at NQ, certainly having that weakness. Certainly with this, any… He, oops, I did that the wrong direction. There we go. Shorts up there, longs down here, ’til it breaks. I was already short ES; I was not going to short NQ (MNQ), or otherwise, I would have been short… Whoops, I would have been short in here, but I’m already short, so I don’t need to double my risk in a counter direction move. So, NQ is battling its VWAP right now. Let’s go take a peek again right here. If it can go through, that’ll be great for my short. If it bounces there, which I expect there to be a bounce, this against the primary trend line, against VWAP, I expect there to be a reaction. I expect ES to have a sympathy reaction, and it gets me out. It’s okay; see if that happens. So, we’re on NQ here. I expect NQ to bounce here against the primary trend line, against VWAP, against the Asia high, and it bounces up. ES has a sympathy bounce, and it gets me out, and I’m okay with my three points. And the unlikely scenario that it vomits through VWAP on the first touch, which I do not expect, but if it did, great, we’ll manage the trade from there. But I expect a reaction, and I expect it to get me out. My goodness, maybe I’ll get lucky. Take a peek at ES here. So, ES got into the green range, where it’s better to look for a long than a short. I prefer a little bit of a deeper entry. And one more tick. I almost feel bad this trade’s taking so long, but it’s okay. If we were at a different time frame, I would probably still have my stop up here, but PPI, Monster Magnet, there’s no sense in it when I can capture a decent little profit and move on. Wait for the next trade, and maybe I’ll get lucky here. Come on, push through. Let’s go, get down. You don’t need to go any higher than that. That’s as high as you need to go. Let’s go, come on, get down there. Look at NQ; it had a little bounce, now it came kind of came back in. So, the life of my short continues, perhaps, but ES is so strong. What’s the difference between $15 and $150? Size. Can I teach you to do this, though, with one MES Micros Futures Contract consistently over and over, day after day? Can you make small without getting too greedy? There’s a lot of people who can’t, or you can’t control their greed. My goodness, you know, just look at this and go, ‘Who wants to be long here, going into PPI, at this trade location?’ What do I know? Maybe they know price is going to go up 100 points today, but I don’t know. Man, I only know what I know. I think it turns out NQ would have been the better short because it was the weaker, but ES gave me the better trade location. I’ll take trade location chess, and if it gets me out, who cares? There’s another high probability trade around the corner. It matters not. Here we go, come on, here we go. It’s time for you to get out, boys. You had your chance to get out up here at profit, or I took your order, and now let’s go, let’s come to the London low. Let’s go take a peek at everybody else. I was hoping for a stronger reaction. Very nice, man, still can’t get under VWAP. I still expect there to be a reaction here, and it gets me out. I’m counter, I’m double parabolic counter. All right, let’s go back to ES. I’m still in. Like I said, well, I didn’t actually say this on this stream, but when I do one entry, one contract entries, that doesn’t mean I’m going to finish with one contract. My goal is to add to my winning trade. Time is getting tight, though, news in 30 minutes. I’m probably not going to be adding to this trade. If it gave me the opportunity to, I would, just for fun on the stream, but it doesn’t seem that’s going to happen. ES is… I mean, NQ is having its bounce off the trend line and VWAP again. In fact, let’s scroll over real quick; you can see that happening once again. This is not a place to be going short. Trade location, trade location. You got to know where price is probably going to come back in your face, or at least have a pause. It could have a long pause, and it’s going to get me an out. Yes, all right, see my traders on Zoom. Stay green, my friends, and to learn more about our group, go to microtrader.com.”