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, where together we trade better. Good morning, everybody! Today’s quote: “Everything is possible for the one who believes.” You’ve come too far in your trading journey to give up now. Everything is possible for the one who believes. And for my members, hopefully, you know you’re in a group that believes and will help you. Everything is possible for the one who believes, and I hope you believe in yourself.

Good morning, Traders! Happy Tuesday, May 14th. The AM briefing is brought to you by microstrader.com, where together we trade better. This is episode number 178.

All right, let’s get into it. I want to talk about Friday and yesterday. Here’s a screenshot from Friday’s AMM briefing video. I want you to see those gray horizontal lines there. Those are strong levels, and they certainly came into play over the last two days.

So, where are we? Here’s that horizontal line, and here’s this horizontal line. I’m going to go back and show that to you. There’s the screenshot, and then we’ll come back to here. Having these strong levels on our charts helps us be better traders. We’re pretty good at knowing where the price bounces, and you see this every day on the AM briefings. It makes trading really fun when you are pretty good, really good, at knowing where the price is going to bounce. If you think having lines like this on your chart would help you in your trading, check us out at microstrader.com.

Yesterday was a twinsy day. I have twins, so it was a twinsy day of the day before. Isn’t that really cool? You don’t get to see that very often, but a twinsy day! So, where are we? Well, Trend bounced along this high-time frame trend really well. Then we opened, and we didn’t see the opening again. It was just ridiculous complex chop. One of my traders did phenomenal yesterday. Congratulations, Justin! He traded masterfully, so congratulations to him.

We finally broke that little bit of trend line, but now we’re in eight sessions of straight sideways and chop, bouncing between the strong levels. Isn’t it interesting how we go from strong to strong, from strong to strong? It’s just really cool to see that stuff.

So, ranges: One of the neat things in our group is that we know we’re at the top of this range. Is it any wonder that strong level matches up with that range? But of course, how did I draw the top of that range? It’s really cool that we’re up in the top of the range, where it’s honestly better to be looking for shorts than longs. It’s just a difficult environment in the sense of, we were obviously trading up, but we were coming to a strong level again, the previous day high, strong range, and it failed once again. That is really cool and fun to watch.

Certainly, it’s hard to go short here when you’re trending up, but it had several reasons that you could have if you wanted. I told my group I would be going short off this strong level here if this thing pushed through, but that didn’t happen. No big deal, I just missed that drop. In fact, I had zero trades yesterday—zero trades—which is fine. That happens from time to time. Who cares? The casino’s open tomorrow, right?

VPO and single prints: I’m going to turn off my strong levels. VPOCs and single prints within this visible area here—I’ll pull this in a little bit so you can see the set of single prints down here at 1525, VPOC at 2950, and you can see this set at 86 as well. All those levels are on the website under the price map at microstrader.com.

Strong levels: We went over session highs and lows. You should be marking those. It’s really helpful when you have these visual blocks, but make sure all of those untested lows, untested highs, and untested halfbacks are marked. You can see an assortment of those markings there. This one I need to adjust now; this matched this high. Did it miss it by a tick or get it at a tick? I’m going to nail it in. I thought it matched it exactly. What I’m going to do is put:

Friday + Monday + Monday RTH high + it’s the IB high, just for thoroughness. Actually, I’m going to change this to London overnight high + Friday RTH high and that IB high. Then, there’s actually a new RTH high right here, Monday RTH high. Let’s make sure that’s in there. Let’s turn on the magnet tool to be specific here. Very nice. Then, we want to know the halfway distance of that, so we turn on our pre-flight indicator here. I want to know where is half that distance. So, RTH halfback is right here, RTH halfback. When we zoom these things in here, 4825. The overnight high basically came to the halfback, so interesting. We want to make sure that halfback is on our chart as well.

Nothing to worry about a holiday trifecta: What that is, is FOMC, CPI, and non-farm payroll. Well, today is PPI and tomorrow is CPI, so we’re definitely in the trifecta area. Opex is Friday. Opex is Friday. Options expiration, guys. It is squirrely between now and then. It is squirrely between now and then, which is going to bring me to my tip: Starting now could be the perfect time to start leveraging down for your week. Does every trade deserve full leverage? PPI, CPI, and Opex week—does it deserve full leverage? I don’t think so. I encourage you to look for the opportunities and examine each of your entries and say, does this entry deserve full leverage? Or because of where we’re at, not only on the chart but where we’re at by time, data, and release news drivers, should I dial it down? I encourage you to think about dialing it down.

News drivers: Here on the website, if you come to the ES price map, you can click this and it’ll show you what I thought were the important news events highlighted. Today is Tuesday: PPI and Powell—talk about a one-two punch. The current single prints and VPOCs as well are on the site.

Overnight: What has happened overnight? Here, let me dial this in just a little bit. We move a couple of things around. Let’s go here and here. Let’s just get it as plain as day. Once again, the bulls are still in control. Don’t think anything’s changed. Just a big balance area, because remember, price can go up, consolidate, and bust up again. The all-time high is not that far away, especially on this particular week with the news drivers that we have. London is stacking on top of Asia, but right here in the middle of the middle of the middle. As I said yesterday when I was talking about the game plan, I said I want to trade the edges. We were here—we were right in here—when I released that morning briefing. I said we’re in the middle of the middle, and I want to trade on the edge. Here was the edge, and here was the edge. What denoted that those were edges? For us, it’s strong levels—beautiful here, beautiful here. How much better, how much easier can trading get? You know what I mean? That’s really cool.

Okay, so that’s the overnight. What about the indices? Let’s take a peek at the indices here. On the bottom left, we have Russell, Dow, NQ, and this is yesterday’s high, low, and halfback. Let’s come out and just look at the halfback. Where are we in general? Well, two of them seem to be under the halfback, and two seem to be at the halfback. But we’re still all within range. Are we all on the same train? Yeah, we’re all in monster slop and chop. Let me bring my train over here. Choo choo! Where are we going? I don’t know the answer to that question yet, but we will be live on Zoom in our group before the PPI news release. So, those are the indices.

What’s the game plan? Same as yesterday: I want to be at an edge. I don’t want to trade in the middle of the middle. Maybe the 7:30 news release will come and grab— I mean, which side of this liquidity does it want? I don’t know, but which side does it want? That’s really what I look for. As I told my group yesterday, when you sit down for trading, you’re like, okay, what do I want to happen? I want it to go grab some liquidity. I either want to be on the train as it’s going to the obvious pool of liquidity, or I need to grab that liquidity and let’s see what happens. In this case, we have an equal attraction at the top, equal attraction at the bottom, and we are in the middle. Patience, with all caps, bolded, double underlined, with arrows pointing at the word “patience.”

Okay, my humble opinion: If you’d like to be part of a live trading room that trades mainly the S&P ES mini contract, check us out at microstrader.com. If you like what I’m doing, like and subscribe, and may the price always bounce in your direction. Stay green, my friends! To learn more about our group, go to microstrader.com.