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Joseph James Trading With JJ · @SchoolOfTrade
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3,191
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18:09
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13min
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Opening (first 30 seconds)
Wow, three gaps tonight on the Nasdaq and the S&P. We park cars right tomorrow. We can use one gap for the entry, one gap for the exit, and make a killing together on tomorrow's live stream. And as always, I'm going to share my entire strategy in tonight's video with entries, with exits. I want to make sure we all have a game plan to follow to make some money together on Thursday's live stream. So charts are ready. Enough of the intro, right? Let's dive right
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Wow, three gaps tonight on the Nasdaq and the S&P. We park cars right tomorrow. We can use one gap for the entry, one gap for the exit, and make a killing together on tomorrow's live stream. And as always, I'm going to share my entire strategy in tonight's video with entries, with exits. I want to make sure we all have a game plan to follow to make some money together on Thursday's live stream. So charts are ready. Enough of the intro, right?
Let's dive right in, make some more green on Thursday morning. Couple days left for the holiday weekend this weekend. Nasdaq's ready. Oh, the S&P is always ready. I've got three clues tonight telling us where I think the money is made on Thursday morning. The first clue, it's right here on the highest time frame, the hourly chart. We use the hourly chart for direction. Let's begin first on the Nasdaq. We'll grab the S&P a bit later on in this video.
Look at that range right in the middle. What do ranges do? They like to rotate, right? Down, up, down, and back up again. That big range has a lot of symmetry above and below right now. We expect these buyers to rotate this thing back up going higher. But wait a second. What's that range right there? What does that range want to do? That range also wants to rotate off that low right now. So lots of conviction here. That tells me buyers definitely have the edge for tomorrow's trading session.
That's a big clue, but it's not the most important clue because now let's go time the entries on the tick charts. The hourly chart's good for direction, but tick charts, a 4,000 tick chart there, upper left hand corner, that is the 21 EMA right there in case you're watching, tuning in right now for the first time right now. There are two really big clues here on this lower time frame. First clue is a pair of ranges. Range right there and a range right here.
This is all you need to make money tomorrow. Because what is that range right there want to do? That's a bullish range. Ranges that are bullish, they like to rotate. We can buy below the range, and we can buy breakout pullbacks above that range. That's a big clue, that first range. What is that range below us right there say? Bullish range, we break out higher. What do range breakouts do? They love to breakout, pullback, right?
So, two ranges, two big clues. But where are the gaps? There's a gap right below us there at 79, a huge juicy bear trap gap at 017 quarter. Those would be great for entries, but where's the gap for an exit? I'm glad you asked. There's this big gap up here just begging to get filled from two days ago. Look at that sucker, right? All the way up at that 74, all the way to that 439. That gap right there is begging to be used as a target for us going long tomorrow.
So, we know direction off the higher timeframe because of this. Boy, I would love to buy a breakout pullback off that zone below. I would love to get some rookies chasing after it. Trap those rookie bears in. Not a good place to sell, right? You wouldn't want to sell off the top of a range and the bottom of that previous range, right? Not a good place to be a bear, great spot for a bear trap. Now, where's price want to go?
It wants to rotate, right? That tells us now where that target is. We know that gap's up there, right? So, use that as your objective. Now, remember, add to your winners. If there's one thing you learn during range rotation, keep adding in below swing. So, one of my favorite trades for tomorrow, bear trap, add on, take some targets off on the pendulum, and you better leave that runner, that big gap fill, up overhead.
Now, what if we don't get that? Remember, the bears have a lot of momentum right now on the higher time frame, right? That hourly chart's pretty bearish there overall right now. I would not be surprised if we saw a strong shot down into that bear trap zone. That's a big big gap never got filled from earlier this morning. Now again, I would love to get a bear trap down here. One, two, trap those bears and squeeze back up again.
But you know what though? When I see big moves down like this, often times there are so many buyers down there, it just whoop and runs right back up again. So often times I can't get any bear trap down there. So keep an eye for this. Watch out for a V bottom. Now V bottoms are difficult on our patience. They are. Remember though, buy below swings and ideally channel off the high, off that low. Again, I want the bear trap down there, but if we see a ton of bulls down there I'm looking for that that next best add-on is that first test is the best test off the low of that channel.
Most important thing is is below that low right there. Whether or not the channel there or not, the channel's great, but below that low is the key component on a V bottom entry. And one last thing too, don't forget, we often times do get a big move down, a bear trap here. Remember, on our live stream, I always use the underbelly of that range as a target. Often times we see an easy winner, I'll take half off, quarter off at the underbelly, and we see another leg going lower.
Now remember, when I get back to retest that low, with that low right there, right there below you. You tell me, is that a good place to sell? Selling low, below a range, right into key support. Please say no, you do not want to sell in that situation. But I can almost guarantee you a lot of rookies will. And if they do, I'm going to trap those bears in. We call these retest trades on our live stream. Love, love, love a good retest trade.
So, be aware of that. It's a It's a bear trap down, taking profit off the underbelly of that range, and buy that retest anywhere down there. Buy that retest from there. Now guys, remember this. I'll be trading this strategy tomorrow morning in real time on our live stream. I'll be sharing screens, calling trades. That way, you can learn this with me and trade along with us in real time tomorrow. So guys and gals, if you're not making the money you want right now, if you're making a bunch of mental mistakes, giving back all your hard-earned gains right now, come join us tomorrow morning, and I will show you how to time these entries properly.
That way, you can make this money right along with us. What I'll do guys is, I'll put a link down below, description of the video. I'll put a pop-up here for you, upper right-hand corner. Pause the video for a second guys, and grab that pop-up there, upper right-hand corner. Cuz guys, trading is so much easier when we do it together on the live stream. You'll know where the best entries are, how to hold those runners a lot longer, and you'll finally get the confidence and consistency you're missing in your trading.
I have almost 20 years experience, 18 years every morning on my live stream. This live stream is the missing piece you've been looking for. So once again, grab that link down below description, or grab that pop-up there, upper right-hand corner. I'll see you tomorrow morning, 8:30 Eastern time. Don't miss the premarket prep. You're going to love every minute of it. Now, what if we don't go lower? What if we don't fill that gap?
What if we don't get that bear trap? What if we start going higher here overnight? Great question. I've got a bunch of ways to make some money, and one that you might not expect here. Let's talk S&P right now. S&P is getting lonely over here on the E-mini. Very similar on the S&P. Oh, one more thing, too, almost forgot. Tomorrow, we get some news tomorrow. We get ISM services at 10:00 Eastern time, and be aware, I'm off on Friday.
There'll be no video tomorrow night. Tonight, last video of the week. Got a holiday on Monday, Labor Day weekend, final couple drops of summer. So, again, no video tomorrow night, no live stream on Friday morning, either. We'll take off some time here for the holiday. Monday's the holiday, back on Tuesday, right? So, be aware of that for tomorrow. ISM services tomorrow, and final day of trading for the week tomorrow morning on our live stream, back on Tuesday after the holiday weekend.
And of course, I'll be there in Discord, the chat room, all during the holiday. Back to our charts, though. On this hourly chart, there's a range right in the middle. What do ranges do? They like to rotate, up, down, up, down, and potentially now back up again. Looking at this as one big range. What does that range right there tell you? That's a bear range right there. What happened? Boy, big breakout leg right there.
What do range breakouts do? They love to break out, pull back. They also love to make a measured move, right? The size of the breakout leg, double it up right there. That puts us, where's that put us? Up around that gap up there. That'd be a good target for us if we get long on this tomorrow morning on the live stream. So, bottom line is a lot of bullishness as we rotate off the low of that range. We might pull back for a breakout, pull back.
And by the way, what is that number right there? 7651 half. I'll bet that level might show up on the faster time frame. Let's dive in and go faster right now on the tick chart. There's two ranges right now, big pop up, a bull range right there, and of course, a big block of ranges down below us. That's basically one big range right there. That range below us, that wants to break out, pull back. It definitely does. That range we have right now, what's that want to do?
That wants to rotate back and forth, buy below the range, trade that rotation, and buy that breakout, pullback. So, we already know basically one idea if we go higher here. Keep in mind too, though, gaps right below me. Gap there, gap there, big gap down around 76.35, even. I love the idea we talked about earlier on the Nasdaq, right? I love the idea of running lower, get into that breakout, pullback zone off the top of that previous range, trap in some of these poor, inexperienced sellers, trap them in, squeeze those stops, and as always, what do we do?
We add to our position as price what? As it rotates higher high in price, under that low. I love to use price action gaps for these two. Tomorrow we'll find out tomorrow morning on the live stream. Price action gaps make for great add-ons as well. Below swings, price action gaps, and the goal again is the amount below, the amount above, ding ding ding, that is our big target. Now, wait a second. I said earlier three gaps, where is a gap?
Oh, I see you. 77.18 half, that is also like Oh my good, really? Bingo, that's a prior range right there. What do range breakouts? Do they love to break out, pullback? That might be the biggest unfinished business we've seen the entire summer so far. Do not forget that level up there, 77.18. So, we know where price now wants to go. And again, because we're pretty bearish right now on the hourly, you can see the bearish momentum right there.
It's pretty obvious, right? But again, don't be surprised here if we make a big run down overnight. Remember, it's it's late summer, right? There's a lot less liquidity this time of the year. So, big moves happen overnight like this all the time. That would be a stretch. It definitely would be, but I would not I would not hesitate to look for a bear trap down there. Or again, those big V bottom plays, right? They run it lower, they just whoop and run back up again.
We V bottom off that low. And again, the most important thing for a V bottom is is you buy below swings. If we're really lucky tomorrow though, it'll be off that channel, right? That's the entry I want. Again, a bit later than I wanted to be. I want to be down there, right? But sometimes we don't get it. We take whatever the market gives us on our live stream. Now, the big question was, what if we go higher here right now, right?
Let's let's let's game plan. Cuz we may not get that drop. We may not get that pullback right now. If we go higher here first of all, again, because we have all that bear momentum on the higher time frame, be very much aware of a potential for a fake out breakout. This could easily run up and just get crushed right back down again. Now, how would I trade that short? Well, remember, like we saw today, right? What we want to do is, when I'm calling tops in a bull market like that, pop up, buyers keep trying, buyers keep trying, I want to get above a high, right?
That is the short signal. We call those crown reversal patterns, right? So, as we go higher here, if I start seeing these buyers, if they come in, they try once, can't do it, twice, I'm watching to get above that high right there, that first try high, strong red candle, close below that 21 EMA, that's your short back down again. Then, we know the amount above, the amount below, we now know where that target is, and most importantly now, we now know too where to look for a bear trap down here, right?
So, bears once, twice, trap those bears in, squeeze those stops. And remember, as it's rotating, promise me, guys, start getting comfortable adding to your winners during range rotation, right? Range rotation, up, down, up, down, they love to rotate. Trade the edges, add to the winners, use the other side of that range for your targets, right? This is This is range trading 101. We do so much of this every day on our live stream.
Again, that link you're going to want to join tomorrow is below us in this video description. All right, so fake out breakout going higher. Now, how would I know if we go higher here? Is there a clue that would tell me not to sell, right? What What going higher right now, what would it look like to tell me to not to sell this thing? It'd be separation, right? Separation. If we pop up and we start separating off that moving average, that tells me we're strong.
Remember, separation off the 21 says strength, right? What happens in strength like that? Higher high in price, below that low, and we're buying below that low. And remember, a lot of times these trades do this, right? They look like this. They break out of the range, they separate, we buy below that low, and remember, like I mentioned earlier on the hourly time frame, the size of the breakout leg, that leg right there, right off that breakout That breakout leg right there, that is the measuring leg.
So, that now tells you now where to take your profit target. We know the gap's up there, but I also look for those those breakout measured legs, right? So, measured moves are very good targets as we go higher here. Now, once I get that measured move target, now look back at that range below us. That range now wants to break out pullback. Now, breakout pullbacks they're not every time, but almost every time the best breakout pullbacks are what I call a 1 2 3 move.
I call these 1 2 3s. It's basically a 138.2 a 161.8 Fibonacci extension. I talk a lot more about this in more detail in the live stream, so be there tomorrow morning, but the basic idea is if we can see a convincing breakout higher followed by a 1 2 3 pullback combine that level off the top of that range, that becomes a great spot for a long. We're not going to pick the bottom. It might keep going lower, right? Might keep going lower by a little bit there, right?
So, we're not going to blindly buy it. Bears once, bears twice, trap those bears in. The goal now is easy, right? The goal now is to go back up and punch that ticket back up and retest the high. If there was a dictionary for a breakout pullback, this is what a breakout pullback looks like in my eyes. It's a nibble on the way higher. It's a measured move. It's a 1 2 3 Fibonacci cluster below, a bear trap, an add-on, and a big steak dinner.
Will we go back and retest that high right now? I love that strategy for tomorrow. And don't forget guys, we may wind up popping up getting that measured move and going into another range up there. Very common. We love ranges on our live stream. If we pop up and go sideways, what do we do? We use that previous range for a breakout pullback. We use that new range for a rotation, right? Make sense? We find We find the amount below, the amount above.
That makes sense, right? So, keep an eye out for a new range by those bear traps, by that breakout pullback off the previous range, and let that sucker roll as it rotates going higher. Right guys? Boy, I'm getting excited right now just talking about this here on this video. But, that's my plan for Thursday's live stream. Now, come join us tomorrow. We can trade this stuff together. You're wasting time right now doing this all on your own out there guys.
I'm giving you the ultimate shortcut tomorrow morning on the live stream. So, once again, grab that link down below, and I'll see you tomorrow morning 8:30 Eastern time. As always, be well out there. Be nice to each other, and you better be here next time. Well, yeah. Adios, amigos. Bye for now.
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