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 microtrader.com, where together we trade better. Good morning! It’s Wednesday, April 17th. Well, ES has done something that it hasn’t been able to do since October, and that is have a nice pullback. If we measure from the top to the overnight bottom that we had this morning, it’s almost a 5% move. Let’s compare that to this move here, a 2 and 1/2% move, and then all of these other moves were shallow, shallow, shallow, even if we take it from the high to the bottom, shallow, and if you do it from body to body, open less than 2%. So, this is the first real pullback we’ve had, and it’s done very, very well. Okay, let’s zoom in. We’re on the 10-minute chart here, and as you can tell, we are in a massive chop zone for one day, 16 hours, and 30 minutes. It will not stay here, is all I know. Now overnight, what did it do? It grabbed this RTH liquidity and it has been strongly lading up. We’re continued to fail here, yesterday over and over. This is the bottom here, over and over. Now, one could easily come in here and draw a range and say up here, I should be looking to short. However, look right down here. Risk of short covering is high. I put that on my chart because I want my traders to continually see that. So, when you are in a chop zone, how do you trade that? Well, you’re typically shorting up here and longing down here. But when you’re in an area, a timeframe, a portion of the chart here where the risk of short covering is high, I’m not shorting this. Sorry, I’m not shorting this unless it gets down here and it proves to me that’s what it’s going to do. Overnight took out this liquidity, purely a beautiful liquidity up and shooting straight back up. So, yesterday we had the risk of short squeeze plus Powell plus the day after a big move. If you journal, is that the type of day you want to trade again in the future? Then we open up with three 8-point candles in the first 30 minutes of trading. Um, Powell’s here in the afternoon. It was a day to certainly respect that maybe it’s not a good day to trade. Level 10 trading, violent, that’s the only word I could put, violent slop and chop. Violent. So, where are we? We’re one day and 16 hours into slop and chop. It might be violent slop and chop. This might be the move that it doesn’t come back. This might be the move it doesn’t come back. What do I know? We shall see. Risk of short covering is high. Risk of short covering is high. I will not be shorting any of this. Um, the play is long or flat until it takes out this range. And remember, we’ve had a nice 5% pullback. ES has had its pullback. You know, for the longest time, we’ve said we haven’t even had a pullback. We haven’t even had a pullback. We haven’t even had a pullback. And now you have the pullback. Let’s hear it. So, the range rules, when do they apply? Most of the time. Most of the time, we are doing a range day. Rarely is it a trend day. So, in general, you want to know those points of where it’s good to short up here. It’s good to long down here. People who got crushed are people who were longing up here and shorting down here. They just don’t know. They’re anticipating trading. “Oh, I think it’s going to break out now. I think it’s going to break out now.” That’s not what we do. We trade off bounce level, cognizant of trend and trade location. And today, we add the next thing. Just as yesterday, the risk of short covering is high. The risk of short covering is high. Trend lines, if you had to draw a trend line right now, look at that angle. Okay, you’re either long or flat. I can’t go long up here, so it makes it real simple. It’s flat. I wait for my next high probability trade. There’s another high probability trade right around the corner. So, remember, at microstrader.com, click Price Map, and I give you key levels. I give you some of the strong levels. I give you some of the single prints. I give you the VX. Lots of great information on that Price Map page. I encourage you to go check it out. So, the strong levels are going to be all the same. In fact, let’s bring up the strong levels now because we didn’t go anywhere, except there is one thing I want to add. This is now thoroughly tested, and we came and tested it. We’ve tested it again, and now look at the aggressive move up. Once again, if I was to sit down and trade at this very moment, the trade is long or flat. And because there is the risk of short covering, you really are interested in longs. But now, because of the chop range here, it’s in an area there’s no way I would go long here. But I’m not shorting it either, so no big deal. What do you do? You wait for your next setup. Stay green, my friends. And to learn more about our group, go to microstrader.com.