Inside a 🔴Live ES Futures Trade: Entry, Stop & Exit 🎯

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Video Transcript:

All right, welcome to Funded Trader Academy. In this video, we’re going to take a look at this 29-point trade, going short on the S&P futures contract from Thursday, October 22nd, straight from a live trading room. Heading into this New York session, price had just dropped 100 points overnight. The bias heading into the day was bearish, yet we were still cognizant of the potential for the bears to be exhausted. So, what I wanted to see after the opening bell was how price reacted at 7742, the London high. Would we see a sweep and a failure, or would we see displacement back through that level to reclaim it? Dan here from Funded Trader Academy. If you’d like to trade alongside us at FTA, please check out the link in the video description below for more information. Keep in mind that this video is straightforward, raw footage from inside the trading room, where you can see and hear the thought process going into the trade, the stop, the execution, the targets, and the follow-through. Enjoy!

You did not invert on that 3-minute chart. We failed to invert, so you’ve got no reason to go short. What does that mean? Do you have a reason to go long? No. It means I have a reason to do nothing.

If this 3-minute chart inverts, the change in the state of delivery is going to be right here. Since it’s going to be close, I’ll watch that 29449 or this 7721. All right, I’m just going to take a shot at this one. Going short. Market order right here, targeting 7704. It looks like this 30-second candle is going to go outside, or the 30-minute candle is going to go outside on both ES and NQ. Back-to-back outside candles. It’s pretty rare. Once we clear here on this candle, once we clear here, go ahead and either reduce your position or move your stop to breakeven. What’s your entry? 7721 3/4. This one gets stopped out, and we’re just in a broadening formation. There’s no go here yet, but we’ll let it cook for a little longer. So, are you in or are you not? I’m in. Oh, okay. Okay. I was in at the close of this candle right here. Yeah, I missed what you guys were talking about there. I had a phone call. I assume you guys are still long. Am I still holding this? I’m short. You’re short? I’m short right now at 7721 3/4. Order filled. I was just joking about holding my long from way up top. All right, I’m short now. Going to see if we can get price to come on down to 7704. That’s my target. I just want to see it get out of the gates here. It’s looking a little wonky, but I’m looking for that potential flush to the downside that could eventually take us down here.

Well, if it breaks 7700, I think it’s going to get ugly. Yeah, yeah, 7704 is what I mean. Like this right here. This failure up here. This trap. The sellers are coming in. Even if we get a little bullish bounce, okay, we’ll take a little heat for a bit. But we’ve got all the clear signals to take this thing back to the downside. The bulls tried to step in here, but they got run over. Right? There’s a big old bearish block sitting right here. Let’s see if we can get that continuation flush back to the downside. You can start notching your stop down. Maybe it would even be prudent to put it above this little swing high right here, because if that goes… All right, I’m going to move my stop to that swing high right here, and we’ll see if we can get that final thrust.

Now, NQ is going to be interesting because it’s going to take out the previous day’s low. If it takes it out and ES doesn’t, then close your ES position or look to secure more profits on it, because when one takes out the previous day’s low and the other doesn’t, that’s a divergence. And this is just garbage price delivery.

All right, we’ve got a risk-free trade on our hands here, fellas. 7704. I actually have mine sitting at 7700, so if we tag 7704 and just keep going, I’ll move my target and see if we can squeeze even further. I’ve got VWAP at 70—or not VWAP, yeah, the first standard deviation and second standard deviation at 7701. Okay, that should be a natural bounce spot. All right, you should be up about 12 or 13 points. Okay, so I’d go ahead and lock in profits.

Since NQ just took it out, I’d go ahead and lock that stop a little tighter. NQ just took out the previous day’s low. You should be up about 15 points right now. All right, I’m up 20 points. Nice trade. There’s my P&L for the day right now. I’ve got to take it out. Now I’m out. Nice 30-point trade. I’ll take it. Yeah, very nice. I’ll take it.