Video Transcript:
Hey guys, Dan here from Funded Trader Academy with my Trade of the Week. Let’s break down this 15-point bullish trap setup from Friday, April 10th, during the New York morning session on the ES.
Okay, so this failed breakout was framed off four different attempts to push above a key level. All right, if we go all the way back, you can see one, two, three, four. Okay, so we’re going to look at this setup from start to finish and dial in the specifics using the Order Flow footprint software to qualify this trade.
Before we dial into the specifics, let’s provide a bit of broader market context using the Volume Profile. So, if you go back a few days, you can see this rapid bullish trend of the week with a capital B-shaped profile, and then another one forming the prior day. Okay, so this aggressive uptrend left behind some imbalances along the way, and then we flattened out into an overnight session with a very tight range.
Okay, so heading into the day, this was the view and this was my framing. Okay, and the idea on the day was that I wanted to see how price responded at either the prior day high or the overnight low, and the immediate thin print just below that imbalance just below price.
So, if we go back through how the pre-market and AM session unfolded, let’s drop this to a 10-minute chart here and zoom this in a little bit. So, if we look at how this market session unfolded, there’s the news spike at 7:30. That’s the first failure.
Okay, and then we have our opening session, our opening candle right here. This is on a 10-minute chart, by the way. So this is the opening candle. That’s your second failure to reclaim this level, the prior day high.
Okay, and off that failure, price pushed all the way back down to VWAP, and we failed to break through it. Then you have a third attempt again. Price pushed back down to VWAP.
So at this point, we have three failures up here and no extension to the downside. So this is starting to look like we’re in for a tight ranging AM session.
But then around 10:20–10:30, price makes a fourth attempt. That’s this one right here. Okay, so if we go back and look: here’s the first failure, second failure off the open, and the third failure. This one looked like it might have some legs, but it was pretty lethargic on the way up, trapped more traders, and rotated back down.
Then we moved into this final fourth attempt. Again, just like before, we had a delta shift—a pretty intense shift from aggressive buying to aggressive selling—with no follow-through, no breakdown, no break of structure.
This one came back up again, and once again we had another shift in delta. We went from mediocre aggressive buying to a rapid shift to aggressive selling right here and here again.
But this one was a little different. This one finally broke down cleanly through VWAP on this 10:40 bar. That was followed by a weak retrace, a weak retest to the underside of VWAP, with more trapped traders right here.
Then we had failure and follow-through, which is where I market ordered in at 6866.75. That led to an extension to the downside, where we were aiming for 6851, which was the London low. That’s exactly where we were looking to go.
If you walk this forward, spoiler alert, it tags it perfectly.
So to recap this trade: I framed the day, set zones and levels of interest based on balance and imbalance before the market opened, drafted a couple of high-probability “if-then” scenarios, and executed when my model triggered.
Right here, my key level was taken. I had traps, a delta shift, and a break of structure, and I held the position to the next level of imbalance.
All right guys, hope that was helpful. We’ll see you in the next video.
Hey everyone, it’s Dale here. I hope you enjoyed the video. If you’d like to trade alongside me and our team of prop firm funded traders every day, then click the link below the video and hop aboard. We’re looking forward to trading with you.
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