Learn Price Action Trading LIVE - High Probability Setups

ruticker 08.03.2025 21:05:03

Recognized text from YouScriptor channel Thomas Wade

Recognized from a YouTube video by YouScriptor.com, For more details, follow the link Learn Price Action Trading LIVE - High Probability Setups

# Traders' Market Analysis Traders, we're looking at the S&P 500 M Futures. The time frame is a 2000-di chart, and I'm going to be sharing my scalping session right now. ## Market Structure The structure of the market, as I zoom out, shows a big trading range and significant consolidation. I have to follow the trend line rule. Inside of this trading range, we have an upward working channel. Right now, it's some spike and channel pattern. It's not the best fitting channel, but it gets the job done. Currently, I'm not thinking about selling because I have to respect the current bias, and the most recent structure in this market is bullish. So, I'm only thinking about buying if I get a nice setup at the exponential moving average (EMA). ## Current Market Conditions All right, traders, I'm resuming the video. There's not much happening. We have a pullback down, and now we have a downtrend break pushing to a new extreme. Everything played out; there is no good trend in either direction, so I'm just waiting. We are below the main consolidation, so I'm looking for an established clear trend to take some setups. Right now, we're just in no man's land. All trends have played out, so there's no bias or edge I can take advantage of. I'm being a little patient now. We have a massive significant push below the EMA. I'm joining the downtrend, working lower, and that needs to get a new extreme. Now, I'm going to drop my limit order because we have a new high, first central long pullback, so like a failed second entry long. The bar is quite big, so I'm dropping my limit order further back, but the downtrend, the big one, needs to get a new extreme. ## Trade Execution Now, I have a broad break pushing to a new high. This is a good sign that the uptrend played out. There was an overshoot that generated the pullback, but the scalp already went, and we didn't get filled. The bar was 6.75 points, so I probably need to scale down because the bars are not getting smaller. All right, traders, we got the scalp. I took a lower high confirmation of a second entry short, and we got taken out instantly. I took this lower high because of a new low, first entry short, second entry short pullback, lower high. I was still expecting the main downtrend to test the new extreme. For this reason, I took the lower high here because I still think this downtrend is just a tad wider, and we need to go lower to test the new low for both channels. I scaled down to four contracts: three scalps, one runner. When the bars are big, they're probably not going to get filled with the limit order, so I want to enter at the low to catch the move, but I don't want to risk getting stopped out with a much bigger loss than usual. So, I'm going to scale down this way; I can enter at the low and not miss it. We have another mini entry short, which is tempting, but I don't want to enter now because we just got our scalp here. This main downtrend still needs to get a new extreme; we have yet to reach it. So, I'm looking for a second entry short at the EMA because I'm going to zoom out. The big downtrend is still expected to test the new extreme. There were a couple of setups here: some failed breakouts, second entry shorts, some lower highs, but at this point, it became too congested, too stacked, so I waited this area out. We still need to get a new low, so let's see if we can get some last pullback before the new low is reached. The market keeps trending lower even after the new extreme of our initial channel. You can see how tiny the pullbacks are. ## Adapting to Market Conditions I'm forced to adapt and draw a secondary wider channel because the trend is getting stronger and stronger, and it's not acting as if there's a breaking extreme. There's no correction; we can't even break above the EMA. Instead, we keep trading lower. We have a failed second entry long, but it's so far from the EMA with the body that I can't really take it. It looks like the downtrend is still attempting to test the new extreme. The moves are quite violent today. The structure is not as established as I would like, like we had this week, but still, it is pretty predictable because the downtrend now needs to get a new extreme. I just need some better setups. We had large two legs down; now we have a push to a new extreme and a massive bullish reversal. So, I'm playing this trend once again. You never want to have these candles on a chart without a pattern. You can see how the EMA keeps pointing up, so I'm thinking about a pullback, second entry long at the EMA because this trend right now is in play. ## Market Evolution I came back from my break, and I can see that the market evolved into a bigger uptrend. I can see market geometry here, and I can see price is reacting to this particular price level, allowing me to draw a brand new trend line. You can see a bottoming pattern here, correction, break, new extreme, series of higher lows. Prices are right now reacting to this trend line, so we keep working hard. I'm playing this wider uptrend, and now I'm going to be focusing on going long at the key entry point and following short trend lines. ## Trade Summary All right, I'm resuming the video because I just took a failed second entry short. It is a little bit more aggressive setup because we have a downtrend in play, but I'm basically taking the risk, betting on the bigger bias. This is the new low, first entry short, pullback, second entry short failure. This is a decent enough bar. Okay, we got the scalp, and now I realize I probably haven't moved my target profit far enough. Never mind, at least we got the scalp. The reason why I want to have a bigger target profit is that I'm scaling down. Because of the volatility increase, just because I trade smaller contracts, I still want to make the same money, so I'm going for 12 ticks, but I didn't manage to move it in time. At least we got the scalp. This is a failed second entry short; it is off the EMA, it is off the trend line, and that's the main reason why I'm taking this. If I zoom back, you can see every single time price bounces off the key entry point, there's a chance a brand new push phase is about to start. Our runner got stopped again, so this was our second trade for today. The market keeps working hard; they got our runner exactly to the take. I was really hoping to get a good runner on a day like this because when the market is this volatile, this tiny little move is 20 points. So, one or two runners can really change the math when the market is volatile like this, but they got us exactly to the take. Sometimes, like this, there's nothing I can do. I'm thinking about widening the channel, so I'm going to tweak it. I'm going to play around with this, and I'll see how the price action looks after breaking your high because there can be just a wider alternative because the break is so tiny. ## Conclusion I'm going to wrap it up with my two trades. This is the structure for today. We're going to go through the chart and see how today developed. We started with an uptrend, had a break, and a new high. There's a second entry long, but the problem is it's not at the exponential moving average, so I have to mark it a little bit more aggressively because you want to see it closer to the EMA. There is a break to a new extreme, two legs down, decent enough to sell. You need a reversal pattern; there is no failed long. Then we had an area without a setup—just no big pattern established just yet, a bunch of short trends, so you have to be careful here. Now we have an uptrend, break, new high, and a pullback. Once you push back below the EMA, you can start to identify that you have a series of lower highs and lower lows. A decent lower high or failed second entry long would not be a bad setup, but you have a bad signal bar here—a doji bullish bar here. Signal bars are so bad; we can't enter. Because we continue to trade lower, you have to adapt to a wide channel. An overshoot can generate a stronger pullback in the opposite direction. You have one leg up, break, second leg up. Once again, you can see how the market moves in pairs of twos, just like here, just like here. Notice how broad these two legs up are and push above the EMA. This gives me confidence that there is a wider channel because there can be no wider up channel like this. This doesn't look healthy; this is too broad. So, once those two legs are so broad, it's a good sign that this has to be a correction because the trend would be better looking. There are a couple of setups to consider—few more aggressive ones because you're getting a little bit staged—but this trend and the main one both need to get a new extreme, and price action is trending low. I don't see any good setups; you just play that with a break to a new low. There's a second entry short, but it's above the EMA, so I don't want to take it just yet. An overshoot generating a stronger pullback—I don't see any good setups here, so we can't take anything. Strong reversal—this is where the market is getting easy to read because they're just focusing on this nice clean uptrend. We don't get a good second entry long at the EMA, so no good stuff for us to consider. You have a halt here, but it doesn't have a new extreme. In a situation like this, when you can see downtrends working lower, you need a failed second entry short above the EMA, a lower high pullback. A failed second entry short didn't form, so you can't really take it. If we have some downtrend broad break, new low, then a higher low would be sufficient, but this is one leg down, and you never know if there are going to be additional pullbacks. So, you need a failed second entry short to play out. A higher low, horrible signal bar, no trigger here, no nothing. This is a great area because you can nicely see how price action is reacting to the trend line. A lot of times, you actually have some nice higher low breakout pullbacks. You're getting a bottoming pattern, and then you have a push above the EMA, higher low breakout pullback, so you can go long. But today, there was no higher low, so no real entry to take a good setup. A failed second entry short has a bad bar; only first entry long. You saw me taking this failed second entry short. We had a break to a new high and a technical second entry long, so you can consider it, but the double bar is a little bit too big. I decided to mark the second entry, excuse me, this higher low because I want to talk about it. It's not a horrible setup to consider, but you can see how the move is too steep. You have a steep leg up here, a steep move here, a steep move here, and you have a triple top. So, you prefer to take a higher low somewhere around this area, but now that you pushed so far up and you have some triple top, massive spike down, it's hard to explain because you need some experience; you need some good feeling. This is why I marked it because if you take a chance here, it's not a horrible setup to take a chance. Also, this is the area you have the high of the day, an important price level. So, triple top here, there's empty room here, so you can tell that this push up was too steep. There's some rejection, so there will probably be a stronger pullback. Then the market is pretty much about to close; it's too late to take any setup. This was a great double trap; this is a perfect setup, but it formed way too late, breaking a new high, and the option played out. So, it was decent price action, a few good setups—not that many, but a few good setups. I'm going to wrap it up. I had a good trading day, and I'm going to talk to you next time. Feel like you're trading!

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