Thurs Feb 15 AM Briefing

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

all right happy Thursday February 15th I hope your Valentine’s Day was delightful so first thing I want to say if you can’t trade by following rules you won’t be a Trader long you have got to protect yourself from yourself how do you do that you don’t make a trade worse I will not add to a losing trade I will not add to a losing trade I will not add to a losing trade you are following your predetermined leverage metrics I’m not telling you what your leverage metrics is you determine what the leverage metric is go to my website micr trader.com click core strategy and then go to leverage metrics and the most important way to protect yourself the most important rule the king of all rules let’s hear it is your daily loss limitDaily Loss LimitThe maximum amount you'll allow yourself to lose in a single day. Hit this limit? You're done. Close the platform. Walk away. Full entry → your daily loss limit is everything do not violate this rule the more you allow yourself to violate this rule the more this second part is very true you won’t be a Trader for long no you must know what is the maximum amount you’re willing to risk on a single day if you’re prop trading divide your draw down by five require five days to fully blow an account so if you have a $1,500 draw down five days means it’s $300 a day is your maximum draw down thus meaning you can never blow an account in a single day you have to hit your 300 loser five days in a row to blow an account now you can take out your daily loss limit with one trade I’m okay with that I’m okay with that you can say you know what I like this entry I love where I’m at I’m going to move my stop a little bit here I’m going to do whatever happens to where my Max loss is still within the daily loss okay this is still breaking some of the rules because I promise you in your leverage met metrics you have determined how much you’re willing to lose so let’s say you’re willing to lose 300 bucks well your max loss per trade might only be $100 $100 $100 and you’ve already violated that rule but the king of rules is you do not lose more than your daily loss limit and your daily loss limit should not blow your account in a single day so this is the king of all rules you can violate a lot of rules and still survive but don’t blow this one and remember breaking the little rules what happens it’s kind of like cheating a little bit on a diet you cheat a little bit more then you cheat a little bit more then you cheat a little bit more you cheat a little bit more before you know it you’re at the dut shop okay so be careful so we’ve had two big move days we had CPICPI (Consumer Price Index)Measures inflation. Higher than expected CPI = potential rate hikes = market volatility. These reports drop monthly and can cause 50-100 point swings in minutes. Full entry → go down overnight went up up and took it all back and now we’re hanging right here what are we going to do what happens here I don’t know but I do know we’re in a low probability environment tomorrow is Friday and Friday’s OpexOPEX (Option Expiration)Occurs on Fridays and is typically associated with "whipsaw" price action, lack of trend, and price pinning. It's considered a dangerous day to chase trades. Full entry → option expirationExpirationThe last day a contract trades before it settles. For ES/MES, this is the third Friday of March, June, September, and December. Full entry → and Monday is a holiday so we’re after two big days so today is probably most likely a low probability day to trade all right let’s look at the trend lines and then the news drivers um today is retail and unemploy employment we we will be live on Zoom if you want to get you a zoom pass and trade with us for one day you certainly can do that at micr trader.com then we’ll look at the overnight and then we’ll look at the strong levelsStrong LevelsProprietary weekly support and resistance levels used to identify areas for "touch and go" trades or reclaims. These levels act like magnets for price. Full entry → okay here’s the daily chart here’s the daily trend line this point and this point established it honored honored honored it’s a strong trend line it was honored again yesterday so far let’s go look at a 30 minute chart here’s the prominent 30 minute trend line okay so this point started it this point started it this honored it what’s going to happen here that will be interesting to tell the London is stacking on top of Asia which is basically stacking on top of this rthRTH (Regular Trading Hours)9:30 AM to 4:00 PM Eastern Time. This is when the big money is active. Higher volume, tighter spreads, more reliable price action. Full entry → which basically stacked onto this rth now this rth yesterday didn’t even make it to halfback to show the strength of the move and as I talked about my losing trade yesterday I missed a 30 minute level and in fact I posted in the group there is actually three 30 minute levels there loser and uh that was a big Miss for me no big deal I’m making sure thorough pre-flight because my pre-flight cost me being in that long number one cuz these three 30 minute levels were within four points of each other are you kidding me no way how often do you get that type of setup and look at the trampoline move here that’s the big kid jumping on the trampoline that’s the big kid jumping on the trampoline um I won’t make that mistake again sometimes you have to learn the mistake you take a loss you re-examine you readjust you tighten up and you get ready for the trading day now let’s come into like a 10-minute chart here and now for the overnight you can see this little bit of a trend line and I like to throw those in in there until they are broken cuz for just a little bit of time for a little bit of time you had a parabolic move that got broken and that’s when you can start looking for shorts and there we go boom that would have worked very well now what are we going to do with this 30 minute trend line and this overnight trend line it will be interesting to see what happens uh when we get back to this rth high is going to be the first test so I consider in this Zone here to be the bull bear Zone basically under 5,000 and up until 9625 the bull bear Zone uh below there it’s kind of watch out below and we’ll see what happens once again today is the day after two big moves a big flush overnight overnight took it all out and now we’re hovering up here so will this be a resting place and we just don’t do a whole lot today will this thing come back down and test this bull bear Zone and continue its Journey up because the trend is definitely up remember the daily trend line remember that 30 minute trend line but we are at an interesting spot on the chart will we clear the overnight high and keep going I have a strong level setting right here that we haven’t tested what level is that 3150 is this level so I have another strong level above us we get above that I have one more strong level at 4125 and then it’s stay out of the way sir yes sir stay out of the way especially if we get a parabolic trend line above this 42 just you’re either long or you’re flat but the goal is to be long above these two um strong levels I think that’s it I’ll see you guys on the zooms here soon Stay Green my friends and to learn more about our group go to micr [Music] trader.com