Notes
- In this lecture, as in the previous one, Michael teaches how to avoid unnecessary risk by recognizing and understanding market conditions that can lead to unfavorable outcomes.
- Recognizing when the market is decoupled (i.e., when the major indices are not in line) is essential because this environment leads to a lower probability of success.
- If the indices move in different directions (decoupled), it’s a sign to sit still and avoid trading.
- On FOMC days or when the Fed chair’s speech is announced, Michael likes to trade in the pre-market because the price action is much clearer than during the regular trading hours.
- There is no clearly defined time range for pre-market trading. However, Michael recommends looking for trades between 7 a.m. and 9 a.m. EST.
- Whenever we have two or more consecutive Volume Imbalances in the chart, we mark them together.
- Street Smarts: High Probability Short-Term Trading Strategies is the book that helped Michael understand stop hunts.
- Michael advises new traders not to trade on Mondays except during Non-Farm Payrolls (NFP) weeks.
- Even in HRLR market conditions, there are still potential opportunities, but these require a wider stop-loss and a more patient approach.
- Patience and discipline are crucial for long-term success in the markets.
NQ - Weekly Chart
NQ - Marking Two Or More Volume Imbalances
NQ - 15-Minute Chart
NQ Trade Example - Shorting Inside FVG And IFVG
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