Thu ES MES Micros Technical Analysis 12/19/2024

Preparing ES Emini & MES Micros Traders
For Our Emini and Micros Futures Trading Room



Traders navigating the ES/MES futures market faced heightened volatility in the wake of the FOMC meeting and ahead of options expiration. Analysts highlighted six critical lessons, emphasizing discipline, risk management, and the importance of journaling to learn from extreme market moves. The broader market remains in a bullish trend, despite recent turbulence, underscoring the need to balance high-level analysis with short-term tactical adjustments. Experts urged participants to focus on rules-based strategies, such as adhering to the "eight-point candle" rule, to mitigate risk and maintain composure in volatile environments. RESOURCES:
            
▶️ Free "Futures Foundations Course"             
▶️ Membership Options      
▶️Youtube Community Updates             
▶️ Website for ES MES Trading Room (Back Up)


TRANSCRIPT:

Welcome ES/MES Futures Traders

Good Morning, Everyone!

Happy aftermath of FOMC and the day before options expiration (Level 10 trading). As promised, today's scripture brings a message of hope:

"Let us not become weary in doing good, for at the proper time we will reap a harvest if we do not give up."

Galatians 6:9

This verse encourages perseverance and faith in your journey.

Welcome to the AM Briefing #327

Brought to you by MicrosTrader.com, where together, we trade better.

Today's Tip of the Day

Yesterday provided significant lessons, which we’ll review today:

  • Journal and Review: Print out yesterday's price action. It’s essential to contemplate and analyze it thoroughly.
  • Preparedness: If outlier days caught you off guard, ensure your trading system is solid and leak-proof.

News Drivers

  • The day after FOMC: final GDP, unemployment claims, and tomorrow’s PCE data.
  • It’s also the last day of the Z contract—trade small or observe price action without engaging.

ES Chart Overview

Reviewing the linear regression channel:

  • Yesterday's price action, though volatile, remains within the broader bull market trend on the high time frame.
  • Perspective matters: Pretend the daily chart is a three-minute chart to stay grounded and focus on short-term price reactions without overanalyzing.

Six Big Lessons

Lesson 1: Never Make Things Worse

If you’re counter-trading, never move your stop or add to a losing position. Respect the trend.

Lesson 2: Lockout Risk Settings

Use lockout settings to prevent overtrading, especially on high-volatility days like FOMC. Protect your account and live to trade another day.

Lesson 3: Counter-Trading Rules

Only take second counter-trend entries after initial signs of reversal. Be disciplined to avoid false reversals.

Lesson 4: Stop Trading When Price Ignores Levels

When price action doesn’t respect your bounce levels, step away. Overtrading in such conditions leads to losses.

Lesson 5: The 8O Candle Rule

Avoid trading when eight-point candles dominate the market. Wait for two bounces with no new eight-point candles before resuming trades.

Lesson 6: Remove Chart Clutter During Aggressive Moves

When markets become extreme, remove all lines (except essentials like eight-point candles) to focus purely on price action.

Stay Green and Learn More

To deepen your understanding and become a disciplined trader, visit MicrosTrader.com.

MORE INFORMATION:

Keywords:

Futures day trading, ES futures, MES trading, trading strategies, price action, outlier days, trading risk management, FOMC trading, trend analysis, eight-point candle rule, counter-trading rules, options expiration, market volatility.

Wall Street Journal Style Summary:

Traders in the ES/MES futures market were reminded of the importance of discipline following the FOMC meeting and ahead of options expiration. Key strategies such as journaling outlier days, maintaining strict lockout risk settings, and adhering to the eight-point candle rule were highlighted as crucial tools for managing volatile conditions. Despite market turbulence, the broader bull market trend remains intact, underscoring the need to focus on fundamentals. With six vital trading lessons, participants are urged to refine their systems and trade cautiously in high-stakes environments.



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