so today I made $21,000 day trading this one strategy which is my morning top reversal and what I want to do is I want to cover exactly where I got in where I got at and just basically walk you through my trading session and walk you through my trading strategy so with that being said let's dive into it so here you go here are all the four trades I've taken uh scratched these two off but these were like the real two trades 12,000 on one 8,000 on the second both trades were my morning top reversal strategy now before I go into the trades the first thing that I want to dive into is my pre-market notes now I always recommend people that before you take on a trading session to have notes or to have some sort of game plan going into the day so here is my game plan uh I'm just going to open this up just kind of walk you guys through everything that I have here just to give you an understanding right so before the Market opens I start writing out the following I have like the theme of the market I have my scenarios I have a pre-market picture I have a picture of the pre-market session and then I I have you know my trade breakdowns after the day is done so before the day opens this is just the theme of the market for Monday uh October 9th right War news over weekend seeing gap down from Market don't jump on what Market should or will do let price dictates over the weekend as you guys know war broke out as war broke out looking at the markets it is something to be like well will the market react negatively Will the Market react positively we have no idea what I like to do is I like to stay out of trying to have an opinion on what the market will or should do I try to look at what price tells me right uh also fomc minutes as well this week Market will be waiting on this due to job Friday jobs report so jobs report happened Friday Market tanked and then right when Market tanked on the open market rallied so just trying to put the pieces together and I I try to carry it over into the next trading session and the next trading session right here are some of the scenarios pre-market gap down flat action so this is how the market looked you know before we open we had a gap down after we had a gap down we're kind of trending sideways and before we open as we open right here we don't have any real Movement we don't have any real direction we just get a small sort of gap down from last session's close watch and open to see if we can test Friday's Supply Zone gap down move into Zone and identify trade there watch open for any sort of weakness look to play that so i' like to lay out scenarios just to have an idea on what are the what are the different possibilities how do I want to take on this day and just build off that right so this is exactly everything I have for my pre-market notes now going on to the session this is all the trade so we're going to walk through each trade I'm going to walk you through where I got in where I got out what is my what was the strategy I used what happened within that strategy and just kind of give you guys the whole you know nine yards here is a recording of the session that I have during this recording I was just looking at the footprint charts I was looking at the tape just to read the strength and the weakness of the move right so let's go to trade number one right uh the trade number one was right here where I made about $122,000 I played the downside on spy I got spy options I got the 428 puts for the same day expiration which made me about 34% so going through the trade really quick I risked about 5 grand made about 12,000 had a 2. 4 R return on the particular trade right now going into the trade let's just look at the entries and exits and then I'll walk you through why I entered and why I exited my first entry was around 10:02 a. m.
as you guys can see and then I exited around 10:04 and then I exited at 10:08 right now my entry was to play this downside move that happened ultimately right here and I want to walk you through what gave me that read right so let's go through the read here so here is what I was looking so right here I have a big big uh level around 4334 massive Supply Zone you guys can see in the past massive demand Zone massive demand Supply Zone it consistently keeps flipping around this particular area over and over and over again even if I go back in time this level has been continuously respected right Market has responded well to this area over and over again as you guys can see right so going into you know Monday I have these levels one level is down here around 4,300 7 is around 4340 and you guys can see this level has been consistently respected even going into Friday you guys can see we get a quick squeeze and we squeeze all the way to 4340 and that's where we start having some consolidation that's where we start having some sort of movement so levels are very important because any level that I set or any zones I set for supply and demand I want to make sure that the market has respected these levels in the past couple of trading sessions if the market has has then these are active zones if the market doesn't then these are not real active zones or real active levels same thing here you guys can see get the rejection on the open we kind of go in that area again get the rejection same thing same thing and then we just kind of flush right out of it okay going into Monday's open you guys can see we gap down right here this is where we gap down we gap down right into that we're in pre-market right as we're in pre-market what starts happening is we start making a move higher and higher towards 4340 so because we just had this big war event going on I am now letting price formulate I am letting price establish itself before I go on and take any sort of trade so as I'm watching price formulate itself I want to see on the open for this day how do we respond at this level okay so let me explain what I mean by that so when I have these zones my trades and I see a lot of Traders do this I'm not really a big fan of it they'll say I'm going to go long if you know the stock or instrument breaks this level I'm going to go short if the stock or instrument breaks this level I don't like to look at the market that way I like to look at the market from a perspective where I want to pay attention to how price responds here how does price respond here do we get passive buyer stepping in do we get aggressive sellers stepping like what happens around these levels what happens with the buyers and sellers activity who is more in control who is more aggressive who is consistently hitting the bid who is consistently hitting the aspect I like to pay attention to that to get the storyline also it matters how a particular trade has gotten to a level if a trade just randomly goes to a level just like the way it did here I'm not comfortable in taking a long position here because we need to take see some sort of consolidation we need to see some pullback but when we do get the pullback we do get the consolidation after a big move now I get a little bit more comfortable maybe going long here right so once once again it depends how how an instrument moves into that key Zone does it go straight into it does it go into it by consolidating like what does that look like right so for me my game plan as I mentioned earlier it all starts with that uh when I go into this uh into my Daily Journal I have my I have my scenarios I have mentioned watch and open to see if we can test Friday's Supply Zone gap down and move into Zone and identify trade there so once again just to kind of put the pieces together I'm looking to see how the Market itself responds around this level what happens at this level if we start seeing some weakness at this level I'm looking once again for a short if we get some weakness here looking for a short or maybe we get more absorption and we get a quick bounce on the open something like we saw here now the reason I'm focusing on the pre-market aspect more uh and giving it a lot of time is because a lot of Trades that you guys see develop they develop with the plans first they develop by having the reads by knowing what the market may possibly do or may possibly not do so you want to start putting these things together most Traders just enter the market they go and they're like I'm going to go long I'm I'm going to go shorter without having a proper thesis or read on the market right so that's why this kind of allows you to formulate a proper trade setup and you want to spend time doing this and when you guys do just just for a second when you guys have your pre-market game plans just keep this in mind always go back to it go back to it because if I have these levels and I go back to my pre-market game plan right I can see what I did right what I did wrong I can see that my zone that I've identified was a good Zone I can see maybe my zone wasn't good I start knowing what are areas that I need to work on that's why I always talk about journaling taking down pre-market notes recapping your trades afterwards make sure you guys consistently do that if you want to be a profitable Trader or if you want to see any sort of improvements in your trading right now with the pre-market aspect down let's go into the trade what are the tools I'm using what are the things I'm focused on right so I'm watching on the open right uh I primarily focus on a 5- minute chart uh on the 5minute chart I'm going to pay attention to how does this Market let me just move on how does this Market respond on that open so look what happens we open up right we open we hold this 4320 I don't really care about any trades in between I want to see how we respond here if we get there how we respond here if we get there as you guys can see on open we start making a push into 4335 right and then we start going into uh 4337 we start going into this Supply zone right my massive zone now the question becomes all right Omar how do we know that this trade will break out of it or reject now this is where you know I made a video on this too on my channel I use footprint charts okay so I'm going to explain to you what this is really quick if you haven't watched it I'll post a link down on the footprint chart video check that out uh and I'll I'll kind of walk you through what I'm looking at so footprint charts are relatively they're breaking down what a candle is right so in this predicament let's just go right here let it just load right here this is the 10 a. m. candle this is a 955 amm candle so if I go to the 5 minute chart this candle that you guys see right here 955 is essentially this candle right so this is the body this is the top Wick lower Wick if we go here we're relatively getting the same thing body top wig lower wig now the way I have it set up is I have a few things number one on this side I have volume I'm just going to actually move this right here oops Yeah so on this side right here I have volume right so I'm seeing in this five minute time period right the way I have my footprint chart set up is I'm seeing on this 5 minute vol 5 minute candle where is the most traded volume happening where is Price being accepted now you guys have to understand something about volume and price right when volume when when we see that at a certain price a lot of volume is getting traded that is where the market feels the most comfortable within the current price Market feels comfortable trading there Market feels comfortable and accepting that current price hence why we're seeing a lot of activity there now also depends on how that activity formulated sometimes if we see a lot of activity on an aggressive move down and the and the trade starts holding we could start looking at absorption we can start seeing it at exhaustion right so it depends on the context right right in this particular point we're seeing a lot of kind of consolidation happening in this Zone and then what I have here is I have how many orders are hitting the bid right on the left side and how many orders are hitting the ask right uh once again there's a video on that we'll post a video down below you guys can check it out and then the colors are representing Delta if it's green more orders are hitting the ask meaning aggressive buyers if it's red more orders are hitting the bid meaning aggressive selling right so that's what I'm using there and then here I have all the orders that hit the ask hit the bid what the Delta is on all that good stuff right so this is what I relatively use alongside with the tape at key levels so once we get into 430 uh 4337 on ES this is where I'm looking and paying attention to how is this price formulate what starts happening right so this is the level where I get my first rejection right and I'll show you that in a in a second when I get my first rejection I have this uh morning top reversal right what I start looking for this is you know we have a gap down or Gap up day which we had kind of a gap down day we get a rejection at Key level right so when we go back to today based on the strategy right based on my focus point right we go into that particular day right this is the closing of Friday Monday we open here so not a big gap down day but we we did get a gap down day we got a gap day in general most times I don't like opening within the range I like opening with outside of that range so we you know Gap gap down after we gap down we go into our massive Supply zone or key level if we go into our massive supplying key level and we get a rejection or we see weakness that is where I am looking to get a short rejection at Key level which we got here no follow through of aggressive buys or strong buys if I see the following criteria happen I am looking to go short that is what my morning top reversal strategy consists of now I highly recommend any person that has created any sort of strategy for you to have your entry rules entry criterias for you to have your exit rules exit criterias whatever they may be and they will develop over time I have everything tracked here on trade Zella trade Zella as you guys can see and I check off like okay we had a gap down day we had a rejection and key level no follow-through of aggressive VI like I make sure these things happen because if these things don't happen and I am recapping my trade and I am looking at the setup I'm like okay well I didn't see this happen I I did see x y and z happen and it allows me to build up my strategy it allows me to have more you know cases for that particular strategy and then what are my exit rules if we get an exhaustion selloff which we did we get low of the day which we kind of relatively did but that's why I sold right so I like having this criteria now going into the entry as I said I identifi their key level there was no follow through of aggressive buys what did I look for no follow-through of aggressive VI once again I use this footprint chart now what happened on this footprint chart what I was looking and this is where I also had my first entry by the way my first entry on this short was around 102 uh right here we've kind of passed that 102 area so what I looked for is I looked for a few things just to kind of give you I guess a quick breakdown of what I looked here first we had a lot of volume you know set up around here in the last candle uh we went up to the high really really quick as we went up to the high really quick the high got taken out with a quick flush and a healthy flush with a move down once I start seeing that I start realizing we did get a rejection that rejection is real we are getting aggressive selling because as you guys can see we're getting negative Delta that negative Delta is being confirmed with price now let me explain something if there's a strong move on the upside and there's aggressive buying behind it the aggressive buying is being rewarded through follow through okay once again let me explain that if there is aggressive buying happening right let's just say we do see strong Delta and there's aggressive buying that is driving Del the Delta number higher meaning there's aggressive bu meaning orders are being hit on the ask if price replicates that and we do see price reacting that is a good sign but if we start getting let's just say in some situations I get I see positive Delta that is saying that there's a lot of strong buyers coming into the market right but price doesn't move that means that these Traders are not getting rewarded that means we are not seeing activity that means that there are passive sellers sitting at that particular level right and passive sellers will you know most of the time absorb these orders and maybe cause a reversal so if I do see Delta go negative or positive and I do see it come from a key Zone and I do see a seeing reaction that is a good sign but now if Delta in this situation was let's say 10% 20% of the current volume and let's just say it was extremely strong but price stayed here that means yes there's a lot of aggressive sellers coming in but they're being absorbed by passive buyers they're getting absorbed and that's not something I want to see if I'm looking to short I hope you guys got that concept if you guys didn't let me know I maybe break it down on another video but I think that should be clear enough right now for me I'm I'm seeing the right signs of hidden key level I'm seeing the rejection the tape is printing strong we're getting massive massive selling going on here that is my first confirmation of taking this short now the moment I take a short I have a key key rule that I think every one of you guys should follow every time I take a trade there's a cost to me taking that trade so if I take a trade I know that if I am wrong I will lose $55,000 so that is the cost of me doing this trade this trade cost me $5,000 right just look I look at it from that perspective because that was my risk when I go into this trade I risk $5,200 my risk was $5,200 so I'm easily able to execute knowing that any single trade I take I have a cost to take on a trade that is my risk that is the area that if this trade goes there I am wrong for me the way I looked at this trade the reason I was able to put my stop above 4335 or in that zone is hey we've developed heavy heavy volume here if we are able to get back Above This Zone most likely I will be wrong I will be wrong in the trade idea trade idea will not be in my favor and I'm okay on taking that loss that is how I kind of formulate a trade now as this trade starts moving in my direction right and and and by the way now I'm in in this particular trade I've entered my short and you know when you look at the footprint chart that's what we see when we look at a five minute kind of chart here right this is what we see on a 5 minute chart we see a big move down all the way to 4324 right so we haven't gotten to 4324 we're just weak and we keep moving on a weak side aggressive sellers are being rewarded no passive buyers stepping in we're pushing through uh a lot of aggressiveness showing up on the tape that's just driving action lower and lower at this point I have no reason to exit I have no reason to rush out of my trade I'm just seeing us take out every level now also where is the next level where I see from a short-term perspectum volume did formulate paying attention I do have this Zone where I know Traders were present bues were present that may possibly step in so I have to keep these zones in mind and I have to be ready for these particular zones and you guys can see we keep selling off we keep selling off I'm in my short position at this particular point now my first exit on that short is around 10:04 so we do come around that level now and I start taking some off now the reason I'm taking some off here you know even though nothing is confirming that we're going to reverse or we're not going to reverse is because when I do go back to this particular trade and I look at maybe the one minute right we had a really big move down with no slowdown so we had three big red candle just pushing now most of the time if I'm in a particular trade and it makes a big move up or big move down I I don't like I'm not comfortable holding that move so when I saw us just you know aggressively selling off aggressively selling off aggressively selling off and we're not just aggressively selling off into nowhere we're aggressively selling off close to the low of the day we're aggressively selling off close to the open of the day now I don't want to take my chances of hoping that we're just going to randomly push through this after we had a big push down already because now big moves down require consolidation big moves up require consolidation if anything just keeps going higher and higher I'm not comfortable holding that I'm not comfortable in chasing that same thing here we want to see some sort of retracement so that is the reason I got out while we were still going down I was like you know what I'm going to take some off going to go cash I took about 70% of my position off I'm going to exit and I can always re-enter because once again I'm not comfortable in holding through the low of the day or the open of the day which we're relatively at the same level so that is where I first took my exit and then my second exit was around 10:08 now the reason 10:8 is once we started getting some consolidation we started getting some hold I was like you know what I'm just going to hold I'm just going to exit I can always revisit this area I can always re-enter and you guys can see close to that 108 area we start holding we start absorbing a lot of orders here uh as we start absorbing a lot of orders here I'm seeing some sort of absorption after a big move and last thing I want to do is get caught up in a reversal back into this area so for me it was hey let's take this trade off the table this trade was about $37,000 was used made about 34% which was $113,000 12K afterwards $5,200 was risk and this was the overall trade outcome that was trade number one right uh with trade number one as I mentioned I highlighted the strategy I used I highlighted the things that worked within that strategy and then when I went back to that trade first trade spy short morning top reversal hit Supply Zone on the opening move solid entry good catch and Supply Zone your level was great highlight those levels highlight the good things about every trade and also highlight the bad things a lot of Traders ignore the good things they do and they keep going into the bad but if you don't focus on the good you don't know what things you should keep building on things that you're doing good and things that you should be aware of that hey these are things that are working right uh first entry was strong I reacted well to the Market's action and raid did not hesitate on Entry first exit is at 104 second exit at 108 cash and look to re-enter revisit this trade and come come back so at this point I reexit and you guys can see uh pretty happy with exit uh once again looking at confirmation we're getting a lot of absorption here on the short-term time frame hence why I wanted to go cash if this absorption didn't happen I would have not I would have not taken the trade I would have still stay short right but once again we start getting this some sort of reversal now my second trade when I go into my second trade my second trade of the day was also short okay now really relatively similar trade $26,000 was used made about 30% 8,400 I cut down the contract size risked about 2700 made about three on the trade the second trade was pretty interesting because I I you know I did the following I'm going to walk you guys through it so I cut down my size in terms of contract the first one I had 400 contracts this I went to 300 the reason I cut my contract down is because my trade was around 1027 a.
m. right uh because my trade was around 1027 a. m.
it was close to the high of the day and I was like if we go into the high of the day I will look to add another 100 I didn't want to go full position in right so when we look at this we go into this area I'm now entering around here and I'm like well if we keep making a leg up I will look to short in this area add another 100 and then put my stop above that hence why I did not want to go in heavier or the same position as my last position now this exact position that worked out 1027 was my first particular entry uh now the reason I got in at 1027 let's just kind of fast forward and kind of explain what I saw what I looked at uh and this was relatively the same setup right when I go into the setup strategies uh morning top reversal gap down rejection at Key level no follow through agressive buys exit was low of the day right all right so this is where I start looking in for my first entry on this particular trade uh you know as I'm looking at the footprint chart I'm looking at the activity of the market uh you know we get a quick quick flush after the flush happens we start getting a move back up now what what am I watching right it goes into number one do we get any sort of weakness into this level as I mentioned earlier this is where a lot of volume was developed I care about this level I want to see if we come in here buyers are aggressive is there's some sort of strong activity going on to drive price higher because for price to go higher we need some strong buyers or activity happening that can drive this price higher so I start paying attention now what starts happening at this level is the moment we hit this 35 level we get extreme level of aggressive selling that opens up really really strong and then that's what I start looking at in terms of the first entry right where where it's like we're going up I don't think that even as we're going up and just looking at some of the stats let me just open this up uh even just looking at some of the numbers of this particular move up we're not getting any sort of real interest volume on each uh 5 minute area is going lower lower and kind of lower so volume is going lower on this move up uh despite getting this big big big move up and any move prior to that was obviously the volume was a lot higher so the volume is not confirming this move either we're going back into my massive Supply Zone and I'm just looking at how the shift happens with volume the moment we enter this area we start getting an extreme level of uh weakness right the moment the 5 minute candle opens up it's like all right we're getting the weakness that is happening right here now I am eyeing that weakness is as I mentioned when I look right here we are seeing that 1027 area 1027 Zone uh that's where the weakness starts coming in just going to fast forward a little bit to walk you guys through it so see for me here this is where I start realizing we're getting a lot of aggressive selling right as we're getting aggressive selling I want to see price react I want to see the bid slowly drop and sellers aggressively get aggressive right here as I'm slowly seeing that this is where I start looking to build my short position right I start looking to build my second short position with the idea that hey it looks like we're weak here it looks like sellers are present here they are aggressive here even though as of yet I'm not getting that aggressive move down that I would like to see just yet um because you guys can see we come back right here right we're coming we start trying to push back up right and it's 1026 and as I mentioned entry is around 1027 when we retest that area and we can break it and we see some weakness there that's when I start going all right we're coming into the zone and if we can take this level out and buyers aren't able to absorb this we're going to flush right and you can see how price is kind of battling battling itself right now 1027 1027 and then right at 20 close to 1028 we start flushing through those zones again and now this is where I start looking to build my short position we can't handle it right aggressive selling going on we're getting the response in activity we're hitting the key level a lot of people a lot of Traders getting trapped in and now I'm looking to potentially enter my short and around this point is where I'm looking to enter my short I take a short position uh looking to play the low side of this again right looking to play the low side and keep in mind when we made a move up where are the kind of small volume nods or you know areas of strong volume and we're breaking them all we we're seeing aggressive selling uh Delta staying negative we are getting response in the movement we are getting um some strong movement on the downside and you can see we keep taking these levels out uh the bids are unable to hold we hit the 50s get a quick quick move down uh go right back up and then flush right after right which gets really really interesting and then you guys can see how we slowly start just flushing out of this zone right and this is 1029 and then as we start selling off I take my first exit at 1037 right or this one just had one exit yeah so I took my exit at 1037 as we got to the low of the day so as you guys can see we start going and as we get to 1037 I take my my exit and the reason I took my exit at 37 is because we got closer to low of the day and as we got closer to low of the day once again going back to what I said before I just didn't want to play anything where it was like Hey you know we're going to come back into a higher area so once we get to low of the day the recent low right here where I got out I was like I'm sure I'm I'm cool with the trade and I walked out now going back to this trade right you know if I did hold this trade a little bit longer I could have made a little bit more money uh but that's that's trading right I'm not once again I'm not looking to capitalize on the full move I'm looking to capitalize on smaller moves now when I look at this day overall look at where we ripped right it was essentially a uptrend day right but I was able to capitalize money in between this first hour right now also this strategy for me morning top reversal just to kind of n into it I only trade this the first hour to first hour and a half I don't like to trade it after right because that is when I have seen it to work the most so anything after the first hour you guys can see this is the first 30 minutes we get 10:30 and then we go to 11 around here anything after I'm not a fan of it even though we saw action happen here even though we saw action happen here not a fan of trading it in between there for me this strategy Is Real at uh 10:00 a. m. 10:30 a.
m. or until 11:00 a. m.
