Spotting LIVE Trading Trend Reversals | Live Scalping 002

Hey, guys, this is Michael Chin and welcome to my live day trading series. You'll be getting first class access to all of my live trades I take in my morning trading session with some commentary on my thoughts and setups. So if you're interested in learning how to day trade and want to follow along, please be sure to give this video a like and subscribe to my channel. And if at any time you have any questions, please feel free to comment below and I'll be happy to help you. All right, let's get on to the stock market. OK, this is a 2000 tick chart of the S&P 500 futures for January 29th, 2020. I like to use a current chart to give my analysis on the price action. And then when an actual setup starts to develop, I'll switch to my live recording of my morning session so you can actually see how that trade went out. So today I started a little late. I came in around 6.14. So around around this time over here, I usually like to start my days at around 5.30 a.m. But I just had a late start this morning and I'll typically trade for around three hours. So you'll see me end at around 8.30 to 9. Now, when I look at this current trend, we do have a gap up and then it seems like prices are starting to probe this high up here, but there's a lot of resistance up here. Prices really can't break through that. So when I see that this is typically a somewhat choppy day and I expect prices to test the highs and the lows, so I have the highs labeled here and the lows labeled here for the current day. This white line over here shows us yesterday's price action. So we don't worry about too much what happened over there. Now, when the day actually starts, the market opens at around here, 6.30. And the first thing we see is that there is quite a sell off starting. So what I'm going to do when I see this sell off is I'm going to start looking at drawing some trend lines to see, you know, how are prices moving down? Right. I like to trade with price action. So I look straight at the bars and I like to see what each bar is telling me. So these bars start to come down. Prices really start to sell off here. And then I will move over to my live session. So at this point, prices really have started to sell off here. You can see that we have really just taken a nosedive here and it looks like prices are very extended at this point. So I am looking for some kind of small reversal here. You can see that there's a nice bullish reversal bar here. So I'm going to come in and try and buy this. I was a little late. I should have bought it a little earlier, but it's fine. We still get filled on this order. And like all of my trades, I'm looking to scalp. So I'm looking to get a one point scalp out of this. And then I will have one runner to see if prices could continue higher and if I can get fortunate to get that money. So we'll see here it's prices are battling a little bit here, but, you know, I just really like this because things have become really extended. We're far away from this EMA. And I think prices could at least make an attempt higher, at least give me one point. And there we go. So we got our one point scalp of the day. So now we are one zero for the day and that is around one hundred fifty dollars. If you don't know how the ES trades, it's fifty dollars per point. And so I scalped out for three contracts around one hundred fifty dollars. And now we still have a runner here. But it looks like prices are selling back off and so it's going to take out my break even stop, unfortunately. But there's nothing I can do there. It's the runner is just basically a gift at this point. Oh, yeah. So we got stopped out there. Very unfortunate, but we are up one hundred fifty dollars for the day. So after we took that trade over here, prices actually continue to go down further. But now it looks like they're starting to go sideways. And so when we start to see this sideways action, this typically means it's the end of the trend. And now I'm going to be looking for any signs of a reversal here. So first thing I see here is that we have an attempt lower down here. And this can definitely trap out a lot of traders who think prices are going to continue down to new lows. So what I'm going to do here is I'm going to look to try and buy on their stop stop orders. And you'll see me come in here in a few seconds with a buyer. There we go. So I'm basically buying all of their pain, right? There's people who sold right here and they think that the is is going to continue down lower. Well, actually, this is a bottoming pattern and this is not a good area to start selling. So I'm going to help them ease out of their positions by buying their covers and we can hopefully try and go for a one point scalp here as well. I did extend this trend line, if you saw, and we are banging in a trend line, which means that this could be a battle right here. But at the same time, the trend is telling us that prices should go up. So it isn't the cleanest trade, I'd say, but I still like it for the reasons that people are trapped down here. And also, this is a pretty big, bullish reversal bar, which is showing a lot of strength. And actually interesting, what we see now is that prices try to make a second attempt lower. And so I always like to talk about the two legged moves. So you have moves in the markets that usually look like this. Well, this is a two legged move right here trying to go down. And when that happens, people really get trapped in. Right. Maybe like 50 percent of traders try to sell this, but like 80 percent of traders who wanted to sell are going to come in and sell this one. So now I'm going to buy again and try and help them ease out of their positions that they screwed up over here. And this one actually went really quickly. We covered the first position that was here and we got our one point scalp of it. And now we're trying to get our one point scalp on our second entry. So this type of trading, this is you know, this is how day trading works, sometimes action can go really quickly and you have to be attentive to what the prices are doing and you have to be moving in with your buy stops as quickly as possible. That's one reason why I don't want to be. I don't want to commentate these live is just because I don't think I could focus on trading the markets and giving my commentary at the same time. I think that would just mess me up and I would end up taking a lot of bad trades and losing a ton of money. So I like to do this kind of post-market commentary where, you know, I don't have to be stressed and worried about my position while I'm talking to you guys. You can see here traders got trapped again, but on the third move down. Right. There's not really like third move patterns that happen too often. So not a whole lot of people are going to be trapped here. Most people, if they thought that prices were going to continue down lower, they would get trapped on this trade right here. So right now, it's just a lot of them shuffling out of their positions. You know, they're like, oh, do I really want to get out of this? So that's what's happening here. And what's going to happen is, you know, when they do finally decide that, you know, prices aren't going to go down, they're going to start buying and it's going to help move up to our one point scalp at the top. Also, in all that fury of action, you might notice the runner from this position over here got kicked out. We still have this we still have this runner alive right here. So hopefully this guy can go pretty far. I don't think he goes far if I remember correctly. There's just a lot of, you know, a lot of back and forth here as both bearish traders and bullish traders, you know, fight, but obviously the smart traders are going long here. Oh, yeah. So there we go. Our runner got kicked out, but we are up four hundred thirty seven dollars and 50 cents a day. We are three zero on our scalps. I usually like to go for three or four scalps a day, but it's about 7 a.m. right now. It's pretty early and I still have some time to trade. So I just going to continue looking at the markets. Now, prices have really started to continue to trend higher. The last trade we took was, I think, back here. And so now I see that prices are again trying to make this two legged move down so people are trying to sell here, thinking that, you know, this is this is the top. The trend is going to resume. And so what I'm going to do again is I'm going to try and buy their stops and help them ease out of their positions. And you can see here this is a terrible mistake to try and go short here. This, you know, this trend line is very bullish. It's still going up. It's you know, it's yet to be broken yet. So it is still in play. So all of these guys who went short here, you know, they're panicking up here. They are sweating bullets. And the moment it starts up there, so it breaks above. I get filled in the moment they get stopped out. And some of the later guys who have their stops up here and here. Well, they're going to start panicking as well. You see here just grinding through their orders. And you may see like prices swinging back and forth. But you have to realize a lot of that is just noise, right? Just the setup, the setups that I take are proven. You know, they've they've been back tested over many years. And basically when you get this trend correctly and you're reading the price action correctly, price action is typically going to be right like 95 percent of the time. If you know what you're doing. So there we go. We got our one point scalp there. I think we're 4-0 for the day, which in my books is just amazing. I honestly like to call it a day after 4-0. But then again, it's still 8 a.m. I still have about an hour left of trading and we have a runner going here. But actually what happens after this is I actually don't take another trade into the next hour. I just I just don't see anything that sets up perfect for me. There were one or two trades that I thought maybe there was an opportunity for a scalp there. Actually, no, there was one that I did miss because I was just I was like making breakfast or something in the morning for myself. Sometimes I step away from the computer for like two or three minutes and then I come back and like, oh, man, I missed a trade that happens. But yeah, I think there was one or two trades that, you know, kind of look good, but they weren't like fully, you know, the perfect setup. Right. I want setups that are like ninety five to one hundred percent guaranteed to be successful for one point scalp. But sometimes, you know, you do see like the 80 percenters. You do see like 70 percenters. And, you know, they're kind of tempting to take that times. But I like to go for these more guaranteed setups just so, you know, I can have perfect records for zero and I can be making a nice profit. So let's just continue to watch this runner. I don't think this one goes well at all. You know, lately my runners just have been getting killed at break even. But at the same time, that's you know, that's how trading goes. So there we go. For the end of the day, we are up five hundred and eighty seven dollars and 50 cents. Very happy about this. You know, if I can get three to four trades a day and make five, six hundred dollars a day, I'm super happy with that. You know, over the course of a year that can that can account like one hundred, two hundred thousand dollars. So this is definitely something that I want to continue learning, continue investing my time in and I will be sharing it with you guys as I go through this journey. All right. And that's the end of this day trading video. I hope you guys learned a lot. If you have any further questions, please feel free to contact me or comment below and I'll be happy to help. And remember, this is a series. So I will be posting as often as I can. So if you're interested in learning more about day trading, please feel free to subscribe to my channel. But remember, I do work a full time job. So these videos are going to come up as time permits for me. Sometimes I have to work late and I won't be able to make the video. And as for that, I will see you guys at the next video. Happy trading.