ES & MES Futures Trade Plan #397

COMMON QUESTIONS FOR ES FUTURES TRADERS

What is a Strong Level in ES futures trading?

A: A Strong Level is a price on the ES chart where price has reacted hard before… and is likely to react again. We mark them ahead of the session and hunt trades at those locations. When you are in a trade and price is arriving at the next Strong Level, peel contracts off. Take Profit just before the bounce. In this Battle Plan, the short paid 25 points per contract because profit was taken right before the Strong Level bounce.

What is the Core Strategy?

A: The Core Strategy is the intraday scalping method taught to Full Members. It trades specific price action patterns at the levels on the price map… things like a BS short, an FS long, and Fair Value Gap longs. Core Strategy points are tracked separately from Battle Plan points on the weekly Scoreboard. This session it scored 30 plus points in small pieces, and those puny numbers were the tell. Low ATR and sluggish price action mean follow through will be difficult.

What is a Lotto Runner and why peel contracts off?

A: A Lotto Runner is the last contract you keep after taking profit on the rest. You trail its stop and let it run for a bigger move… if the market gives it. Peeling contracts off means scaling out as price arrives at a Strong Level so you bank gains before a reversal. In this session the runner got trailed out, then a wicked wick took a second runner right before price ran 15 points in the right direction. That is the trade off. You lock in the sure thing and accept that the runner sometimes gets clipped.

What is the Bull Bear Line and how do I use it?

A: The Bull Bear Line is the level that separates bullish control from bearish control on the price map. Above it, the bulls are in charge. Below it, the bears take over. In this Battle Plan it sits at the bottom of the range and is marked as a long idea… the spot where buyers are expected to step in and defend. It is the preferred Way Down Yonder long if price ever gets that far.

What does the Tip of the Day mean by You Didn’t Draw It? You Can’t Trade It?

A: It means only pre-planned trades get your money. Set that rule in stone. Before the session you draw your levels and your setups on the chart. During the session you trade only those. The market will tempt you with beautiful movers all day… let the unplanned ones run without you. This is how you avoid chasing on days like this one, where wicks came out of nowhere and the afternoon ATR was barely above 2.0 on a three minute chart. You can’t scalp what won’t move.

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