Transcript for:
Trading Strategies for Hidden Bear Traps

All right, y'all. Back to work. Hope you guys had a restful weekend. Boy, pretty darn good day today. Got a big money-making week ahead of us. And I'll tell you, we have some beautiful range rotation going on on the tick charts right now. But once you see these charts tonight, I think you'll agree there are two areas where I've got some what I would call hidden bear traps. So, I want to talk about why they're hidden, kind of where they are, and most importantly, I'm going to give you guys a game plan to time the entries, take the profit. By the time we're done tonight, it'll be an easy road map to make some money on some hopefully some hidden bear traps tomorrow morning as well. So, charts are ready. Enough of the intro. As always, thanks for tuning in and watching my videos here tonight. Let's dive right in and let's make some money this week. S&P SPY ready to go tonight. NASDAQ triple Q's are all ready. I have five. Yeah, quite a few clues right now. Five important clues on the charts that are telling us where I think the winning trades are waiting for tomorrow. Two of those five clues are right here on the hourly time frame. First clue is we're definitely bullish overall on the S&P SPY. Bullish overall NASDAQ triple Q's. I like to use these higher time frames as an overall directional filter that will give us the best direction for tomorrow into the rest of the week. this week. A second clue was also pretty important. You'll notice pop up and grind going higher here right now. I can draw that trend line off the highs. Bring it down off that low. We pop up kind of grinding higher right now. Trend line off the highs down around that low. What does that tell you? It tells you that there's plenty of space right now for a deep pullback on the S&P SPY. Even bigger, deeper pullback here on the NASDAQ. So, what does that tell me? It tells me that if we do see a relatively big correction over the next 24 hours, it's probably not a reversal. It's probably just a one big bear trap waiting for buyers to buy the dip. So, the hourly charts right now, bunch of big clues. One is we know overall direction, but again, don't be surprised if we see the bottom get pulled out from underneath us here right now. It's probably a great time to look for some bear traps. I got one more clue for tomorrow, though. over on the calendar for tomorrow. Third clue for Tuesday. We got some big news coming out at 10:00 Eastern time on Tuesday morning. Consumer confidence and the big report is that Jolt support at 10:00 Eastern time. That's probably not the biggest news of the week. We got some big personal income number on Wednesday. We got ISM manufacturing on Thursday, employment number on Friday. So, we got a bunch of big news coming later on in the week here. But keep your eyes on that 10:00 consumer confidence, that 10:00 jolt. Remember, anytime we see big news at 10:00, you best be paying attention. That was three out of five clues for tomorrow. The fourth and fifth clues are down on some tick charts. Again, I like to use these hourly charts as a bigger picture, but we're not going to trade off hourly charts in our trade room. Let's now drill down to our fastest time frame, our tick charts. Now, tick charts. Remember, tick charts are based on volume. They make pattern recognition and entries a lot easier. All the time frames, in case you're watching for the first time right now, are right upper leftand corner. That is a 7,000 tick chart. And that moving average right there, it's pretty much the only indicator I use to find trades each week. That, my friends, is the 21 EMA. There are two what are almost the most important clues right now on the chart right now. And this is where we find those two areas for those hidden bear traps. One big clue is right there in front of us. It's basically one big bull range. Now, why would a range be an important clue? Because ranges love to rotate. They rotate down. They rotate up, they rotate down, and now we're trying to finish off that rotation going higher. We call these pendulum swings in our trade room. The amount above, the amount below, the amount below, the amount above. Now, you could also say too that because we're overall bullish on the hourly chart right now, a bullish rotation off the low is now susceptible to a breakout pullback. That will definitely be something we'll talk about as we're deeper into this video. Now, speaking of a breakout pullback, the final clue we see right now is this little range right there. I'll tell you, if you weren't paying attention, you might not see that range right now. Now, why would that range be a fifth final important clue? Because what do ranges do? They love to break out, pullback. So, there are a couple different different spots right now. I'd love to find some what I would call hidden bear traps. For example, during this larger rotation going higher, you'll notice I've drawn a trend line off the highs. I brought that trend line down around that low. So, one of my favorite kind of hidden bear traps would be I would love to pull back a little bit deeper, get around the low of that channel, and then use that 21 EMA combined with what we call the two try rule. We call these two try bear traps. It's bears trying once, it's bears trying twice. Let those bears try to run this thing lower, then use their stops to squeeze those stops. Run those stops. If you get stopped out, you're buying your way out. We call those failure patterns in our free trading classes. It's basically a twotry bear trap. Now, remember, where's the market want to go right now? It wants to take out that high. It wants to complete that gap fill. It wants to complete that pendulum swing. So, after we get our bear trap entry in, I'm looking for some add-ons. The easiest way to make more money in trading is to add to your winning trades. Now that we know where this market now is trying to go now, now after I get that bear trap entry, I can look for this add-on entry. Add-ons are very simple. First things first, separation away from that moving average, higher high in price, and I want to get right in below that prior swing. So, one of two hidden bear traps is off this beautiful channel coming in. Let those bears try twice. Squeeze those stops and add to our winners. Targets off at the high. Leave that runner up to that pendulum swing. But arguably my favorite of the two hidden bear traps will be a bit lower. I would love to get this down into that range down there. I'll bet a lot of rookies will think this is a reversal. Once again, bear trap it. One try, two try. Trap those bears in. squeeze those stops. And again, I can't emphasize enough that separation away from the moving average, that higher high in price, and that move right below that low. Again, it's a bear trap and an add-on targets back up to retest the high and finish off that pendulum swing. Now, let's not forget, go back to the hourly chart. We have plenty of room for a big, big pullback right now. So, what I would love to get for tomorrow is is something we call a retest trade. What's a retest trade? Retest trades are really simple. Strong run down, we often times see strong breakouts will retest and then run back up again. We know what the hourly chart tells us. This down here, it may feel like a reversal, but it's probably nothing more than one big buy the dip, one big bear trap opportunity. So, if I don't get a good entry signal off that channel or off that breakout pullback zone, if this thing finds its way all the way down to that area, you better believe I will keep looking for bear traps down here. And again, I'm not going to blindly buy down here. What I'll do is is wait for those bears to try once, wait to try twice, trap those bears in, and squeeze those stops running up. Trust me, once you learn this bear trap into add-on combination, be looking for these things all over any chart, any market that you want to apply it to. And again, remember when you get those buys off those lows like that, leave that runner cuz what do ranges love to do? They love to rotate. Now, here's a question. What if we don't get that bear trap down there? What if we start going higher overnight? How do we trade some variations of this? We'll talk about that in more detail here in just a moment. First things first though, let's slow down for a second because I know most guys and gals, you guys watch these videos all the time. You know these patterns already. You're making money with these already. But if you're watching for the first time right now, this might be a brand new strategy for you. Don't you worry, though. I teach this entire system in my free trading class. In fact, I have a ton of examples. Bear traps, add-ons, range rotations. Guys, the markets are so good right now. You should be making consistent profits. I want to help you time better entries on this stuff. So, what I'll do is I'll put a link up top here for you upper right hand corner. Hit that link that popped up there and take that free trading course because the strategy I teach in that short video course. We'll teach you a simple trick we use in our members trade room each morning that literally tells us exactly where the winning trades are going to be each day. More importantly though, I want to teach you my four favorite entry setups so you can time better entries, make a lot more money. Guys, again, the markets are way too good right now not to be banking consistent profits. So, if you're still missing the best entries each day, if you've lost your confidence in your current strategy, what are you waiting for? Hit that link that popped up there. Watch that free video course. Everyone loves all the trade examples I include in that short video series. The best part is it is 110% completely free for you. Also to keep in mind too guys, I'm going to put all the important links you'll need to learn the entire system. Time better entries, make a lot more consistent profits guys. Most folks, they make money all on their own all from that free video course everyone loves. I get so much good feedback here on this YouTube channel. So I'll put all those links for description of the YouTube video. Start there first. And if you're on Twitter or X as the kids call it these days, I post a ton of charts and videos and mindset stuff on X throughout the day. If you're on that platform, give me a follow. Again, all the details you'll need to learn the entire road map, hopefully make a lot more money because of it are linked up for description of the YouTube video. All right, so where did we leave off here? Now, I mentioned earlier that if we go higher here right now, I've got some more trades I'm watching for as we go higher because again, this could easily break out and wind up pulling back. And I've got three trades I'm watching for to make some money on a potential rotation higher with a breakout pullback. But let's back up for a second though. One more second though because I mentioned earlier I would love to run lower, trap some bears in and squeeze those stops running higher. But let's face it, sometimes we simply don't get that bear trap pattern. So, you know, for example, right, I would love I would love to go all the way down and trap some bears in right there, but what if we don't get it? What if we get down there and what if I don't get a chance trap the bears in? What if this thing just whoop and runs right back up again. So, we have a variation of these entry patterns we call a Vbottom reversal. It could it could be here. It could be here. It doesn't matter where it is. But as we go lower, if this thing Vbottoms off that low and begins to grind going higher again, I'm not going to get the bear trap I mentioned earlier. What I'll do is I'll shift my focus now to a slightly different variation of the entry. It's very easy. I'm going to find a trend line off the highs. I'm going to bring that trend line down off that low. Now, here's where the magic happens. I'm going to look left and find some of these prior swing lows right there. I'm going to mark up those prior swing lows. What I want is I want to get the first pullback. We call it the first test is the best test. First test, the best test off below that channel. And ideally, I want to be in underneath one of those prior swings. Now, the my my favorite ones are going to close strong right above that 21 EMA. You'll learn that entry tactic in our free video classes. Sometimes we don't get it though. Sometimes it'll get below that 21 EMA. I can use that bears once, bears twice, that same bear trap uh combination, that same. And again, always, always, always as we rotate from one side of the range to the other, I always want to look to add to my position, add to my winners. And the way you do that is is that separation off of that low. So, a quick recap here. I would love to go down, trap the bears in down here, but if I can't get it, it happens sometimes, there could be so many buyers down there. If I simply don't get the entry I want, I'm not going to chase after it. You know, one of the hardest parts about trading is if you don't if you don't get the entry you want, you know, think of it this way. Trades are like buses. If I can't get the one I ideally want down here, I stay patient. I go find the next one. Right? Trades are like buses. If you miss one, there'll be another one coming right around the corner. All right. Now, we know now we know some ways to buy this as it goes lower. And again, do not be surprised as we run lower. It will feel very scary there, right? Because of that rotation going lower. But once you know where we are on the hourly time frame right now, it's easy to see, right? If this thing really dumps somehow, we know there's probably not going to be a reversal. It's just one big uh bear trap. Now, let's go forward now over on the NASDAQ and talk about if we go higher here because again, that's a range right there. It's going to want to rotate going higher. Now going higher, this could be a little bit tricky because we don't want to buy too high, right? And over of course now on the NASDAQ, my 60-minut time frame. Again, there's two really obvious clues right now. One clue is we're definitely bullish overall. There's no doubt about that. Again, we'll use the hourly chart for the overall directional filter. But the second big clue though, right now, is that channel right off the highs, off of that low. You know, I I would imagine I would imagine that nice steep pullback. Boy, would that be fantastic? At some point this week, that breakout pullback area, you know, what do we always say, right? Anytime we break out of a trading range, a breakout pullback is very, very likely in the next coming weeks, right? So, keep an eye on that 927 area there on the NASDAQ. I would imagine though, one really big clue right now on the ENQ is that prior high right there. Usually once we break above a high like that, we're going to come back and use that level as support at some point in the future. So, I would keep your eyes on that 165 half level. That seems to be a really good spot there for what could be a hidden bear trap. Now, I want to drill down to some tick charts and talk about entries here because I got some more entries I'm watching for tomorrow. Before we talk NASDAQ, though, if you're enjoying this video tonight, please help me grow this channel by hitting that like button and make sure you subscribe. I know we're all busy people these days. I appreciate you guys tuning in and watching my video. So, as always, thank you so much for all the likes, the shares, the subscribes, all the support down in the comment section below. Now, let's get our hands dirty here now on some NASDAQ tick charts here over on the tick charts. And what a beautiful chart right now. What a beautiful chart. Love the way this chart setting up right now. Bull move up into a trading range. And you can see right, we go below, we go above, we go above, we go below, and now we're rotating back higher. Ranges love to rotate, don't they? The amount below the range, the amount above the range. We know where this market now wants to go. I also thought that one of my favorite clues, and we talked about this earlier on the S&P, was that range right there, right? Anytime we see this one's not that that obvious, but you can see though down up no down up. That's a range for sure. We break out. And man oh man, but I love a bit of a hidden bear trap there at the edge of that trading range. So, you'll notice a lot of similarities here between the S&P and NASDAQ. I love this channel coming off of this off those highs. I'd love to grab that bear trap off that low. That's one hidden bear trap. Of course, the breakout pullback. That's a hidden bear trap I'm watching for tomorrow. And again, remember there's that key level off the hourly time frame. In all reality, that would probably be the best trade for the rest of the week this week. If we can get that big run down, again, it will feel it will feel like a like a reversal here. But again, look at the hourly chart. It's going to take a lot more than that to reversal. Remember, don't don't force the entries, right? Wait for the pullback one, two, right? trap them in and back up again. And if we don't get that bear trap and it just whoop runs back up again, keep your eyes on that Vbottom coming off of that low. Right, that's the key there. Find that new channel. It's just like here we draw off those off those highs off that low. Find that first test right there. Same thing. I'm going to buy that first test is the best test off of that low. And remember, the the the the biggest ones, the best the best money-making trades are always just below a price swing off that. a lot of examples of those first test trap entries. Uh, a lot of examples of those inside of that free trading course. All right, so now we know more about kind of how we're trading this thing. If we go lower here, what if we go higher here though, right? If we go higher here, we know where the market wants to go right now. There's a couple things that you want to be aware of here if we do wind up rotating higher. So first things first, we know where the where the uh where the pendulum swing is. If I start seeing, you know, for example, if we start seeing this market now running higher, getting some separation off the moving average, the most aggressive entry is always going to be one of those add-on entries. So separation, higher high in price, getting in right below that low. Now, it's very important that we remember a breakout leg. The breakout leg is always a measuring leg. So for example, the breakout leg is a measuring leg. And if I can get that aggressive basically a bear trap right there, higher high in price below prior swing, I can now use that now for a target. So keep in mind the pendulum swing is definitely a big target for us. But on the way up to that target overhead though, if I start seeing a strong run up, a shallow pullback that separates off that moving average, higher high in price, there's a good chance that buyers are going to pile in below that low before we take out that pendulum swing. That'll be an easy target for us overhead. And again, first leg is the breakout leg that creates the measured move. That will be where our final target will be from there. Now, I mentioned earlier in the video tonight that when when ranges break out, we like to use what are basically breakout pullbacks. So, now this trading range now becomes ripe for a breakout pullback. Now, when I say breakout pullback, there are two different types of breakout pullbacks we look for in our trade room. The most common is a two-legged pullback. So it's one leg usually below the moving average. A second leg that is usually a little bit more than a measured move. Ideally this would line up where somewhere around those prior highs basically what was resistance becomes support. So again we see now a very convincing breakout. We go through that pendulum swing a very convincing break of that pendulum swing. Now, one way to buy a breakout pullback is is go think about where those prior highs are. Look for a onelegg two-legged. Now, again, usually a bit a bit more than a measured move. ABCD. And as always, again, we're not going to pick a top and bottom. We're not going to blindly buy that bottom. I'm going to find that prior high and try to basically pin those sellers getting short below that 21 EMA. Think about that, right? That's not a good spot to be selling because you're selling into all that momentum, not just on the on the tick chart right now, but also on the hourly chart as well. So again, two-legged pullback. We'll hold the top of that prior range. The bears are trapped in. I can now use their stops to fuel that run back up and take my profit target off back up to retest the high. That is one type of breakout pullback I look for. It's basically an aggressive bear trap and you'll learn this technique in that free video course. It's an aggressive bear trap getting in. It's going to be a measured move target overhead. Once I see that, then I know two-legged pullback, what was resistance becomes support bear trap. And as always, an add-on here too, right? That that add-on trade can be applied right there as well. After a bear trap, I'm pretty much always looking for an add-on. Excuse me, wrong color there. Right. Add-on going higher from there. So, all the same entry tactics we talked about so far can be applied there on that breakout pullback. Another type of breakout pullback is a what we call a pop and grind breakout. So, pop and grind breakouts are pretty simple. We run up, we don't get that real strong run to breakout pullback. Now, now we pop up and we start grinding, grinding, grinding. Remember grinding markets, they're very difficult to stop. When markets grind in one direction, it drags up all the moving averages. If you if you know how to read volume analysis or order flow analysis, market profile analysis, you know that that uh all that volume piles up top there, it's very difficult to stop a market like that. So, if we start seeing this thing, if this thing pops up like this, pops up, starts grinding, going higher here, right now, usually it'll be separating off that moving average. All I do is is mark a trend line off that high, bring that trend line down around that low, right? Find that channel. And again, I want to get that pullback off that channel. I like to always make sure I get below one of those swings. That's usually where the best winners are hanging out each week. Most importantly though, when I get below that 21 EMA, remember all that grinding momentum, it's very difficult to stop that momentum, right? Very strong momentum going higher here. So, as I pull back now, trap those bears in. And again, keep looking for those bear traps and those add-ons around that 21 EMA. Now, one cool thing about these pop and grind breakouts is again the breakout leg can be used as a measuring leg, right? So, think about now. Think about now that breakout leg can be used as that measuring leg and now you know where to put that final target and really cash a big paycheck going higher here. There's one more thing I want to talk about tonight and that is what if what if this happens? What if we saw a strong rotation higher, we take out that pendulum swing and then we start chopping around going sideways up here? What would happen if we popped up and went into a new trading range? Well, remind me again, what do ranges do? They love to rotate, right? They rotate down, up, down, up. They rotate with symmetry, right? Back and forth. Very important thing. But what happens though after a breakout? a breakout pullback. So, if we were to run higher here and go into a new range up here, you know what I'm now looking for, right? I'm gonna look for those prior highs up here. I'm going to want to get underneath that range. Ideally, let's use that previous range as a breakout pullback. Use that new range for your rotation. Exactly. Right. So, now we now we measure my below my above. Now, now we know where the market wants to go. Now, now what we're going to do now is wait for that pullback. Again, I'm not going to waste your time by talking about divergence or reading tape. Once you know how to use bear traps and bull traps, you'll you'll learn that in our free trading classes. Bear traps one, two, and again, if you know how ranges work, now we know we're not just going back to retest the high. That is always a good place for a profit target, but we're now trying to finish off that rotation. going back to the other side of that trading range. This is why in our free video class, I always say my favorite types of days are range days, right? So, watch out for a trading range up there. And again, think about how could I use a previous range for a breakout pullback and the most recent range for that range rotation. That is where the magic happens in most cases when a range breaks out into a new trading range. And remember, keep in mind too, right, this also could happen above it. We could pop up into a range. We break out first and then come back down. Remember that pendulum swing, it cuts both ways. Now, as always, right, this will feel very uncomfortable. That move lower will feel very very bearish. But remember prior range breakout pullback new range trade the rotation the amount above it the amount below it that gives me now my level of support we don't pick that bottom and somewhere between that pendulum swing and that prior range is probably where another hidden bear trap is waiting to get you paid on Tuesday morning. Right guys, those are my favorite trades and some variations for us here tomorrow. The game plan's ready. Now, tomorrow morning, the place to be is in our trade room. 8:00 Eastern time. Guys, I can't think of a better way to learn to make consistent profits than to do it with us every morning in our trade room. Like I said earlier, 8:00 Eastern time. Come join us. Come trade along. I'll put all the important links you'll need again to learn the system. Grab that free trading course, enjoy all the trade examples there, then come join me in my trade room and we'll do it together. In the meantime, guys, hope you guys learned a bunch this afternoon. Hope you use this knowledge to earn a bunch tomorrow. In the meantime, be well, be nice to each other out there, and you better be here next time. Adios, amigos. Bye for now.