Tuesday August 26, 2025

Q: What is the 'tip of the day' for counter-trading, and why is it important?

The 'tip of the day' for counter-trading is to be quicker to take profit. This can be achieved by following the price at 50% of the move or by exiting at the very next bounce level. This strategy is crucial because counter-trend trades can be volatile, and securing profits swiftly helps to mitigate risk, especially when the overall market trend is moving in the opposite direction.

Q: How does Micros Trader use 'strong levels' and the 'bull/bear line' in their trading strategy?

Micros Trader identifies 'strong levels' as key price points where the market is likely to find support or resistance, leading to bounces or reversals. These levels are published for members and are crucial for anticipating market movements. The 'bull/bear line' represents a significant weekly sentiment indicator. Trading above this line generally favours long positions, while trading below it suggests a potential shift towards short positions, helping traders align their strategy with the prevailing market sentiment.

Q: What is the 'battle plan,' and how can traders access it?

The 'battle plan' is a daily publication from Micros Trader that outlines specific trade ideas and entry points. It's unlocked for everyone on certain days, allowing non-members to access it. Traders can typically find the battle plan by visiting microtrader.com and clicking on the 'battle plan' section. It's a valuable resource for identifying potential trades and understanding the reasoning behind them, including specific targets and entry levels.

Q: How does the AM Briefing approach risk management, particularly in relation to 'strong levels'?

The AM Briefing emphasises taking profit before a 'strong level' is hit, especially when going short. The reasoning is that prices typically bounce off these strong levels, making it prudent to exit a trade just before that point to lock in profits. This cautious approach helps traders avoid potential reversals and ensures they secure gains rather than waiting for a level to be fully tested and potentially breached in an unfavourable direction.

Q: What is the significance of the 'Powell day' and yesterday's low in the market analysis?

The 'Powell day' likely refers to a significant market event or a specific day where Federal Reserve Chairman Jerome Powell made an announcement that heavily influenced market direction. Taking back the 'Powell day' suggests a retracement of the move that occurred on that day. Yesterday's low is a crucial reference point; if the market is trading below it, it indicates a continuation of a downward trend and is 'worthy of note' for potential live trading strategies.

Q: What has been the recent trend in global trading sessions, particularly regarding the 'Asia session'?

Recently, the 'Asia session' has been remarkably active and influential, described as 'the monster session.' It has surpassed both the New York and London sessions in terms of market activity and impact, with Micros Trader noting that it's been 'kicking butt and taking names 100% for certain.' This indicates a shift in market dynamics where the Asian trading hours are playing a more dominant role in setting market direction.

Q: What are the immediate trading considerations if the market were to open below the 'bull/bear line'?

If the market opens below the 'bull/bear line,' the immediate consideration is a potential move towards the 'expected range down.' This would make the most sense as a target. In such a scenario, traders would primarily be looking for long positions, but specifically in 'all the right places,' implying that they would be selective and wait for opportune entry points rather than simply going long anywhere. The emphasis remains on reclaiming the strong levels above the bull/bear line or testing it as a bounce point.

Micros Trader’s 500th AM Briefing outlined key trading strategies with a focus on counter-trading and precise exits. Strong levels at 6455 and 6429 were identified as pivotal areas, with the bull/bear line serving as a guide for directional bias. Economic releases including Durable Goods, Consumer Confidence, and the Richmond Manufacturing Index are expected to drive intraday volatility, while attention turns to Nvidia as a market driver tomorrow. Traders were urged to use the unlocked daily battle plan and join the live pre-market session for actionable setups.

☀️ AM BRIEFING

Opening Remarks

Welcome to the 500th episode of the AM Briefing from Micros Trader. Today’s session provides a look at key market conditions, important levels, and actionable strategies with a focus on counter-trading and using strong levels effectively.

The briefing begins with a scriptural reminder from 1 Samuel: “Do not look at his appearance or his stature because I have rejected him.” The message emphasizes the importance of looking beyond surface-level market movements and instead focusing on deeper, underlying dynamics.

"Do not look at his appearance or his stature because I have rejected him." — 1 Samuel

Tip of the Day: Counter-Trading Strategies

For counter-trades, the main principle is to be quicker to take profits. Two methods are recommended for managing these trades:

Trail the trade by following it at 50% of the move.
Exit at the very next bounce level.

Micros Trader explained this with an example: he followed price at 50%, which eventually got him out on a sharp flush move.

Market Drivers and Schedule

Key economic releases on the calendar include:

One hour before the open: Durable Goods data.
Thirty minutes after the open: Consumer Confidence and the Richmond Manufacturing Index.

Micros Trader also reminded traders of the live stream on YouTube, starting 15 minutes before the market opens as part of the regular Tuesday schedule. He noted that all eyes will be on Nvidia tomorrow, with strong potential for it to drive market action.

The daily battle plan has been unlocked for everyone today at MicroTrader.com. It contains multiple trade ideas, including “trade idea number two” with four potential entries.

Key Market Levels and Observations

Strong levels are central to today’s strategy. These are price areas where the market typically bounces. Examples highlighted include:

6455 — a strong level where losing it could trigger a move to 6429.
6429 — another strong level, already tested several times.

Micros Trader emphasized how effective the published strong levels from Sunday night have been, producing multiple solid bounces.

The bull/bear line for the week was highlighted. Above this line, the preference is to lean long; below it, the bias can change quickly.

On the 30-minute chart, the market is showing higher lows but is overall laddering down. This structure suggests downside pressure, making counter-trading a key approach.

Other important observations:

The market is barely inside yesterday’s range.
Trading under yesterday’s low is noteworthy.
The market appears to be attempting to take back “Powell Day.”
Asia was once again the most active session, outpacing even London in volume and movement.

Trading Scenarios and Targets

Long Scenarios (Above Bull/Bear Line):

Recovering levels, especially over 62, can trigger long opportunities.
Targets include key strong levels outlined in the battle plan.
Add-on opportunities exist further above for existing longs.

Short Scenarios (Below Bull/Bear Line):

A short becomes valid if 6455 is lost.
Micros Trader had considered a short at 5350 on a strong level but removed it after spotting irrational DOM behavior.
If below the bull/bear line, the expectation is to reach the full expected downside range.

Entry/Exit Precision:

When shorting, Micros Trader takes profits just before the next key level. When going long, he enters well before the bounce level. He noted missing a long entry because he didn’t front-run it. The advice: stay patient, as another trade is always just around the corner.

Call to Action

Traders are encouraged to access the free battle plan at MicroTrader.com, which includes today’s setups and tomorrow’s preparation. Finally, everyone is invited to join the live session 15 minutes before the open for real-time trading insights and execution.

❓ FREQUENTLY ASKED QUESTIONS

AM BRIEFING – FREQUENTLY ASKED QUESTIONS

What is the AM Briefing, and what is its purpose?

A: The AM Briefing is a video series presented by Micros Trader, designed to help traders "trade better." It provides daily insights, market analysis, and trade ideas. The briefing includes a "tip of the day," a review of news drivers that might affect the market, and a detailed look at charts and potential trade setups. It also highlights "strong levels" (key price points) and the "bull/bear line" to guide trading decisions.

What is the "tip of the day" for counter-trading, and why is it important?

A: The "tip of the day" for counter-trading is to be quicker to take profit. This can be achieved by following the price at 50% of the move or by exiting at the very next bounce level. This strategy is crucial because counter-trend trades can be volatile, and securing profits swiftly helps to mitigate risk, especially when the overall market trend is moving in the opposite direction.

How does Micros Trader use "strong levels" and the "bull/bear line" in their trading strategy?

A: Micros Trader identifies "strong levels" as key price points where the market is likely to find support or resistance, leading to bounces or reversals. These levels are published for members and are crucial for anticipating market movements. The "bull/bear line" represents a significant weekly sentiment indicator. Trading above this line generally favours long positions, while trading below it suggests a potential shift towards short positions, helping traders align their strategy with the prevailing market sentiment.

What is the "battle plan," and how can traders access it?

A: The "battle plan" is a daily publication from Micros Trader that outlines specific trade ideas and entry points. It's unlocked for everyone on certain days, allowing non-members to access it. Traders can typically find the battle plan by visiting microtrader.com and clicking on the "battle plan" section. It's a valuable resource for identifying potential trades and understanding the reasoning behind them, including specific targets and entry levels.

How does the AM Briefing approach risk management, particularly in relation to "strong levels"?

A: The AM Briefing emphasises taking profit before a "strong level" is hit, especially when going short. The reasoning is that prices typically bounce off these strong levels, making it prudent to exit a trade just before that point to lock in profits. This cautious approach helps traders avoid potential reversals and ensures they secure gains rather than waiting for a level to be fully tested and potentially breached in an unfavourable direction.

What is the significance of the "Powell day" and yesterday's low in the market analysis?

A: The "Powell day" likely refers to a significant market event or a specific day where Federal Reserve Chairman Jerome Powell made an announcement that heavily influenced market direction. Taking back the "Powell day" suggests a retracement of the move that occurred on that day. Yesterday's low is a crucial reference point; if the market is trading below it, it indicates a continuation of a downward trend and is "worthy of note" for potential live trading strategies.

What has been the recent trend in global trading sessions, particularly regarding the "Asia session"?

A: Recently, the "Asia session" has been remarkably active and influential, described as "the monster session." It has surpassed both the New York and London sessions in terms of market activity and impact, with Micros Trader noting that it's been "kicking butt and taking names 100% for certain." This indicates a shift in market dynamics where the Asian trading hours are playing a more dominant role in setting market direction.

What are the immediate trading considerations if the market were to open below the "bull/bear line"?

A: If the market opens below the "bull/bear line," the immediate consideration is a potential move towards the "expected range down." This would make the most sense as a target. In such a scenario, traders would primarily be looking for long positions, but specifically in "all the right places," implying that they would be selective and wait for opportune entry points rather than simply going long anywhere. The emphasis remains on reclaiming the strong levels above the bull/bear line or testing it as a bounce point.