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2,000 Tick Push in the E-mini Russell 2000

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2000 tick push on E-mini Russell. Hey everyone, I hope you enjoy this content. Don’t forget to click that subscribe button and hit that bell to be notified of upcoming videos. Hey everyone, Josh Martinez here with tradersagency.com and welcome to this week’s idea. Behind us is the E-mini Russell 2000. Now, today’s date is July the 19th, 2021. Now remember with a E-mini contract, every tick is worth about $5. With the micro contract, every tick’s worth about 50 cents.

Now, we have about a 2000 tick buying opportunity here if the research holds true, which so far, it appears it is. 2000 ticks in a full E-mini contract is worth 10,000 U.S. dollars. With a micro contract, it’s still worth $1000 so absolutely worth our time. So, in trading, what ends up happening is we look for patterns and a lot of this is part of our core belief, but ultimately when we see the market on the side of an uptrend, and we see that the market is making higher highs and higher lows, higher highs and higher lows, we have to begin to make decisions. And we can begin to see in this visual example, when or if the market comes near the bottom level, the market historically goes up.

So when the market comes down and hits or comes near the bottom level again, hitting the up trend line, more than likely, unless the structure breaks, the market should U-turn and head right back up. Now, when you look at a daily timeframe, you don’t really see these touch points other than a few times a year, so when they happen, you have to be very intentional if you want to catch the move to really maximize the profit opportunity. So when we look at the daily timeframe, you can see that basically since March of 2020, the market has come near this uptrend line one, two, three, going on our fourth time.

So now if we zoom in right here, we have to be intentional about looking for the U-turn. Now, again, looking for the U-turn. What does that mean? Well, that means you got to look for the U-turn. In trading, you hear a lot on the internet says, “buy the dip.” And yes, that is true but I think that is the half true. What you really need to be doing is buying the U-turn after the dip. Once you have an uptrend, it logically makes sense to find the low prices to buy, but you want to buy the market after it U turns and the way that you can view this is by saying, you don’t really want to be the first one to buy. You just don’t want to be the last one to buy. So let the market start to U-turn, start to use an entry strategy, a counter trend line break, a candlestick formation.

You can start to go to the smaller timeframe, waiting for the downtrend lines to be broken, wait for a bullish trend to form on a one-hour timeframe or even a five minute timeframe. And then once the market starts to extend, don’t let it take off without you, but right when it starts to U-turn, after you get confirmation, the buyers are taking control. Then what you can do is apply your favorite entry strategy. But the problem is, if you try to buy the market right now, you’re guessing the U-turn. You’re basically saying, “Hey, I’m going to buy the market at a low price in the buy zone and I hope the buyers take control.” And the problem is when you are buying when the sellers take control and you’re hoping that the buyers take control, it is a recipe for a miserable experience and oftentimes the market will go against you. You only get stopped out. You lose money and only a couple hours later, or a few days later, the market actually goes your way. Which means you’re being punished for being right or you’re losing money, even though you’re right in the analysis. And a really, really simple way to fix that is just to wait for a proper entry strategy.

Now, there’s only two things which I could tell people that really screw up good trade plans. The first thing is you risk too much money. If you’re the type of person that risks half your account in a single trade, it only takes two trade and you lose all your money. That’s not a good experience and frankly, it’s very hard to find success over time. But if you’re the type of person that says, “I’m going to risk a little bit of money at a time. I’m going to go after a little bit more money than I risk, and I’m going to allow my formula to pay me out and stack the profits.” Than I think you’re going to have a really great experience when you view the markets this way. The second way that people really mess up good trading plans is they get in too early. They don’t wait for confirmation we already talked about.

All right everyone, this week’s idea is E-mini Russell bullish. We’re looking for about 2000 tick rally if the uptrend line can hold. This is Josh Martinez and we’ll see you next week. Hey guys, if you enjoy this video and you want to stay up to date to my weekly content, go ahead subscribe to this channel tradersagency.com. If you want to be notified every time I post a video, go ahead and click on that bell down below. If you want even more information, don’t forget to visit my website at tradersagency.com and subscribe to my free weekly newsletter, where I send out my research on market opportunities. Thank you for the opportunity. Have a wonderful day.

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