Hey, what’s up fellow traders? Happy Monday to you. Well, today 33 minutes of screen time and I am done for the day with $1,200 in the E-mini S&P. As you’ll see in the recap that I recorded live while in the futures trading chat room I’ve levered a short position, added to it and scaled out. As the market broke lower we grabbed our money, headed for the exit before the market turned around. Enjoy today’s futures pulse and I look forward to meeting you back in the markets tomorrow.
Alright for those just tuning in here I’m going to get you up to speed. We are short in this E-mini S&P. We initiated the position of 2979.25, which is right there. Market came up adding at 82.25, which is right there bringing cost average up to 2980.75, which is, I’m going to draw another line right there. So that’s right where we are that’s where we stand in the trade. Which is right where the market is right here right now. Stop on the trade 85.25, which is right up there. You know we’re looking for the market to break free into that open space down below which you can see revealed by your Tas market map.
Key area I’m watching on this as well is on the 30 is 29.78 half areas, that green line, we call that the demand zone. If we can get down below there, especially at close down below 78.50 that would be a big deal.
This chart over here is a ten minute chart. Which gives three levels of support resistance, middle this is our neutral zone here on static price depression levels, call this R1, resistance level one, two, three. Down here we call it S1, 2, 3. okay. Those are calculated based on yesterday’s activity they were like stakes in the ground that remain intact the entire day.
Meanwhile your Tas boxes indicators the three line levels, red, aqua, and green here, these one that change on the chart. This delineates the balance zone or what we call ‘value area’. They’re generated based upon by default a seven bar look back, so it’s always analyzing the most recent seven bars and generating projected value or balances area. Okay. We use those levels to dictate whether we should trade long short, and we use those levels to place stops, adjust stops so forth.
In the background the pretty indicator here, the skittles convention I like to call it, the Tas market map, which takes volume in its raw form down below which is where most traders on that trade stop their analysis rate at volume but as market profile traders, which is what I am… for sixteen years, we can some valuable information because the big difference between just looking at volume like this… and flipping it sideways it is you get to see at what exact prices most of the activity is occurring. Which allows you to see, see how you can see where these gaps are revealed or when the volume falls off down below?
Those zones are areas that you have to be aware of if you’re going to trade market profile because those areas makes markets move fast, and vertically.
Here we go Mark’s going to give us the break here at 79.75… so far so good.
Remember my cost average 80.75 right now, so I’m in the money $50 a contract, Looking good in the neighborhood.
Still want to get that closed down below 78.50… We are not there quite yet.
Ten minute chart keeping it’s downward pointing trajectory. Tas navigator down there.
79.50 get ready, here we go.
Where are you guys short from? Some of you guys were adding actually 29.83 sans Ryan was adding 29.83, good for you guys. You guys got some real nice adds there and you will be handsomely rewarded shortly if this technical pattern comes to life for us. This is the hardest part about trading right here, right now. This is the patience factor, okay.
Right over here is where I’m going to draw a couple of dollar signs here. That’s where we’re trying to be. That’s where the marker will give us that slide.
It’s electric do do-dolo-dodo. I don’t know why I thought of that. Think I heard that at a wedding recently and it’s still stuck in my brain. Tom’s asking do people use Tas for stocks? Absolutely. In fact, most of the users are stock traders. My virtue of a couple factors, there’s more stock traders than there are futurist traders but, yes you can use Tas market profile, the analytics you see for stocks, ETFs, Forex, Futures, literally anything and any time frame. You can do time-based charts renko case, range, almost any style chart you can think of. It’ll adapt to the analysis. Lets say it watches even the S&P chart over here I’m going to change it to 233 tick which is a popular one for active day trader, here we go. See it does the analysis, it just regenerates it, you base up the bars a little differently but the analysis levels will update. It’s very quick.
79.25… Patience, Danielson, patience. I just saw that movie recently. Karate Kid, the original one, that’s the one I like, the original. You can see the importance of this battle right here. The market is defending that 78.50 zone. K markets retreat, look at that low coming off of that 78.50 zone.
Alright the ten minute bar just closed down a moment ago. So it’s good that’s closing down below the 83 but what we really want is this market to move down below 78.50 okay, there we go. 79.50, 79.25, 79 even. You can see right here, the big tickers up here…
Alright, alright… As… As risk mitigation uncovered part of my unit here, I’m buying back half of my lot sizing on this one. I’m going to tell you where I got field… 79.25 on that. So I got a point and a half on half of my positions so far which is a risk mitigation item, save member our cost average at 80 .75 just covered half my units there 79.25. We’re off to the races so far.
Don’t forget when you scale out of proportion your position, you want to update your lot sizing as well on your stock, okay.
It’s good advice, Timothy is giving you there. Keep coming to Future’s room here for sure you can’t help but not learn market profile. Sit in for a couple weeks, just watch the show, ask questions and what first looks like a foreign language maybe on the screen here wile start to be the ultimate clarity for you. So far, so good, looks like we’re, I got inside tip that we’re leading the pack for best data analysis tool and zinga for this year. Bout time, bout time, (laughs).
I use free court order types, market orders if I’m not splitting hairs over the re-entry, stock orders for, I’ll use stock orders for stock losses but also we use stock entries into the market as well. So if I want the market to break through a particular zone, uh William, in this case that’s not what I was doing I was just watching the market, I was attentive to the screen but I’ll use the stock word for wanting to being a resting order if the market breaks trough a key zone or a technical high or one of the Tas levels and I already want the orders resting there.
This marks being a little stubborn here, it’s taking a little bit longer than I would have anticipated. Now remember there’s kind of a time clock that’s going for my trade for the length of time that I prefer to spend in front of the screen sot here’s a time clock that’s going on here as well okay I want to see another push down below the lower, awfully close 79.25. We’re in the green. We’re going to try and push that 78.50 level okay then we’re going to pay attention the 77.50 over here. That’s when we get into that neutral zone on our Tas price compression levels. Remember Tas is available on a dozen industry leading platforms that you probably already have. And if you’re a warrior trading student you get over fifty percent discount at Taswarriors.com that’s awesome. Just for being a warrior. Thousands of dollars you get to save every year. Don’t thank me thank Ross.
Mark is having a tough time breaking that demand zone at 78.50, good news is we’re in the money even at this level here. Based upon our ad okay, getting a recap here we started this ride at 79.25, we added at 82.25 up there bringing our cost average to 80.75 markets breaking down it’s having a tough time breaking off that demand zone. I’m heading for the exit, and I am done, 1200 dollars I’m going to tell you where I got out that last one right there.
Ah, bum-bu-bu-bum, where do we go. Here it is. 29.80 even. I am done for the day 1200 dollars, my time stop kicked in this market needed to make its break and my time on the screen so we did actually good on this one. 1200 dollars. Relatively short period of time from I guess initially getting into the trade to where we are now. All in all, little over thirty minutes of work. 1,200 dollars to begin I’ll recap it for you here. We initiated a short position, 2979.25 which was right back here because we saw the market going into break down mood okay, all right. And we initially put our stock at 85.25 that was our apocalypse prevention plan if all went haywire and the end of the world as we know it on the trade, we want to get out up there, that’s really just kind of a to cover our butt so we don’t fall in love and marry a trade if the market fails to break lower.
As the market came up towards this area this is a common strategy and many of you right here in the Future’s room did a really nice job of getting some even better prices than me right? Nothing like beating the coach. I added at 82.25, okay which is right up in here so there’s 82.25, initially it was 79.25 which brought our cost average right here to that middle line. But you guys are talking about being able to add at 83 which means you actually made more money on that market we trade off here. Reason I got out of the trade, some of you are going to say well why don’t you just stay in this trade all day?
Well the first thing is I don’t like to trade all day. Okay. (laughs) I don’t, I talk about this all the time on social media and say hey you gotta keep it relative guys if you can make up… Ironically this is what I made on Friday as well in about the same length of time so you know a half hours worth of work making 1,200 bucks. You’re making, you know, 2,400 dollars an hour and you’ve got the whole rest of your day to do what you want with.
You can work another job, work on your passions, take the day off, go to the beach, work on your tan, spend time with your family, it’s summertime. I’m going to spend some time with the kids. Actually my son’s at a baseball camp right now so I’m going to go kinda see how’s doing over at the ball field with the White Sox, actually. It’s pretty cool. Even though I’m a Twins fan I’ll tell you. I’m a Minnesota boy.
But that’s a pretty darn good deal, it’s a good way to start the week okay guys. Look forward to meeting you back at the markets tomorrow. We’ll be back at it again, finding opportunities, seeing what we can find, taking what the markets willing to give has been our theme here, and sometimes that’s what the day is so, trade well and be well the rest of the way. Look forward to meeting you back here soon, so long.
Hey I see you there. If you enjoyed that video, give me a thumbs up and leave a comment down below. And be sure to subscribe for more great videos just like this for more of your trading.