Transcription
So guys, in this video today, I'm going to be showing you how to take these market open breakout trades and how I have a 93% win rate with this. Now, this is all recorded 2025. It's all been recorded and posted for people. And so far in January, a 100% win rate.
Um, so in terms of the daily win rate, so as we're looking at this, you'll see my full explanation how I get it done. I'm going to keep this really quick, really simple, very detailed. Again, if you can't explain it to a four-year-old, you can't explain it at all. Right? So, let's get into it.
So what you see here is the trades we took for the day. Um I will be uploading this live trade recording as well. So just in case if anyone needs to see proof of this live call out trade and the entry the whole nine. Uh but I did post it on my Instagram. Um but main thing I was seeing here again I'm going to go over in the pre-market how was I identifying how did I know the market would break out give us 100 160 points etc. And then later in the day how did I know the market would reject right at my 4hour level. How did I know the market would reject there for this massive ended up being roughly 300 something points profit on the trade? So really big to see this thing play out. Beautiful, beautiful executions across the board. Uh get right into it.
So what I'm focusing on right here that you're seeing is a volume footprint chart. Okay, this is the same thing. We're watching this consolidation zone right here. So this is what we're looking at in terms of over here on QQQ. Um but this shows me volume within the candle. That way I don't have to try to guess what volume is doing. I don't have to rely on a candle close. I there's a lot of advantages to reading volume that you won't see online from other traders. Well, because it's super hard and it's and it's it's nothing you can really sell, right? This is great free information for you, but it's nothing you can monetize to sell a course.
So, as I'm watching this volume play out, keep in mind as I explain this to you, it is somewhat difficult, but once you get it, it starts to take off. You clean up those entries really nice. As I'm watching this play out, all I'm telling myself is, all right, I can see price, okay, holding my level down here to the downside. Okay, so I had put on my watch list that morning. I'll actually go ahead and put the watch list up right now. So, as you can see on my watch list, I posted it this morning. I post this 15 minutes prior to market open every single morning. It's my game plan for the day. As you can see, I had both the MU breakout, which we'll go over at the end, and I had the 25237. So, let's keep that in mind. 25237 on NQ. So, as you can see, the 25237 level right here where it retested beautifully. That's where we're looking for that breakout at the open, right? That's what I'm watching for. That's what I'm trying to see.
We had this big gap down in the market. And all I'm telling the students when I see this big gap down is I'm telling everybody, guys, as we're starting to sell through here, I can see very realistically not a selloff right at the open. That's what everyone was expecting. Everyone was expecting a complete dump at the open. Okay? It is possible. I'm not saying there was no chance of it happening, but a healthy continuation selloff would look a lot like a market gap recovery. So, a nice push to the upside followed by a key rejection at a key level, then you can see a healthy selloff for that continuation. Right? So, that was my whole overall bias going into the market open.
Now, as we're looking at this entry play out, all I'm keeping in mind here is on the volume footprint is called point of control. So, the white area you see is point of control. If point of control is below us and it's on each individual candle. So each candle here represents five minutes. Every single candle you see point of control is more forming on the downside right around this ends up lining up with my level here at 25210. 25210 is holding a support. It keeps bouncing off this range. And again seeing this consolidation is a good thing because it's respecting both of my levels beautifully. As you can see here, if you need help on finding key levels, I'll I'll try to put the video like right here or something or you can just look at it on the rest of my YouTube. But I have a video on how to find key levels. So you can see how I find these. But as I see it hold this in the pre-market, I'm telling myself, guys, I am loving this range. I'm looking for that breakout to the upside simply because point of control, i.e. volume, support, is holding below us here at 25210. I want you to think of volume as a wall. It's a wall. Price does not want to break through that. That's why you're seeing that price action in the pre-market. So this is giving me that much more confidence to take this entry off the open. Yes, risky. However, this is what I've done for years. So, it's not that risky to me.
All right. So, now as we move to the upside here, market's about to open. What am I seeing? Right? We're right here. What am I seeing that's giving me confidence to take this entry? Two things I want to see. We've already confirmed one, which is a bounce of my 4hour level right here in the pre-market. We see the bounce of that 4hour level and a hold of this level, which is my bias for the upside 25210. It's also backed by volume. So, I'm confident in the hold of that level. Now I have another level I want to keep in mind. My 25237. What do we notice here on these wicks at 237 right before the open point of control point of control has shifted over here to my next level. So ding ding ding ding ding volume volume. Now I just have to watch this and go okay if price can just pull back a little bit. If it can pull back and tap my 237 level, then we can see a nice push to the upside. Or if it just starts to take off off the open, showing price doesn't even want to retrace back into 237. Either way, that's going to be my criteria for my entry. One of those two will be my criteria for my entry setup. It's all I got to see happen. And sure enough, you see that nice, beautiful move to the upside. Uh, this ended up hitting a peak of around 165 points profit on NQ. And as you can see, if even if you had a stop loss in place, never would have hit your stop. Never. Right when I enter these trades, and this is what I call out in my community, had a 15% 15 point stop-loss. So, me personally though, never saw any red on this trade. It just went straight to profit. Absolutely beautiful trade. Great execution.
All right. Um, and again, this is just based on volume footprint, right? You can clearly see there's a lot more buying pressure than selling pressure. So, the right is the green, that's buying side. The red is the sell side. Now, this isn't the only volume you want to use. This is a tool that I use, but I use this in conjunction with order book level two and time and sales. That's what gives me a good overall picture of volume. I will be making a video on that later explaining how to use order book level two, what does it mean, etc. Live examples, the whole nine.
So, um, the main thing here though, what a lot of you are probably concerned about as well is, all right, James, how would this have helped you take this rejection play? All right, this was a separate trade that I had mentioned on the live that someone could possibly take later in the day. But what would you have looked for? That 4-hour reject level. So, I was going over this over and over and over again on the live session that day, telling everybody the only spot I'm super concerned about is that 4hour level to the upside 25415 for a rejection. That was it. That was the only thing I was concerned about. Um, and sure enough, we got up there. But how would you take this entry? Boom. Let me give you a shot right here at it. Taking it there at the peak. Unrealistic. Very unrealistic. That would have been very difficult. I'm not saying it's not possible. If you follow some guru that said they did that, great. Um, but that's why I like trading on a live so people can't refute my claims, right? But this would be very difficult for me to see. Why? Because point of control closed above UQQ pre-market high above my 4hour level. We had a strong candle close. Point of control is below me. I would expect point of control to form as support. So I would never be taking shorts up there. Clearly though, the market dumped, right? Market dumps from there.
Now, what are we looking for? I have gotten confirmation that we've rejected my 4hour level. So, I've gotten confirmation. We've rejected it multiple times now. Right? One, two, three times we've rejected my 4hour level. So, now I'm just going to tell myself, all right, if I can see uh volume like a liquidity grab, so pull back to the upside, right? So, if price can retrace, come from here, bounce off my 333 level, move back up here to this 4hour level, get some a loss of momentum, a loss of volume, that can signal to me with a candle close below this level that we can look for a short entry. And as you can see here, what do you see form? Point of control forms to the upside. Candle close below it. Point of control forms right at pre-market high. Candle control uh point of control forms right below pre-market high. So with all these point of controls moving a descending order slowly selling more and more and more that's giving me confidence that hey you can take this setup now do you have to wait for this third candle? Absolutely not. I think that's a little bit too late right that would be waiting to down here. Would the trade have worked? Yeah but I don't think that's ideal. What's ideal is watching for a rejection of that key level. When you see that rejection occur followed by high volume. The high volume would have been on the close of that green candle. That would have been the high volume because now you see point of control is closed. More selling pressure. 81,000 versus 76,000. More selling pressure, rejection of the key level. Boom. You take the entry right there on the spot. You take the entry. Stops above the key level. If you're trying to give a really big stop, you can do that. I never would. That that's like a 30 point stop loss. To me, that's pretty damn big. Um I'd rather just keep it around 15 to 20 points. Leave your stop loss right there, right above a 4-hour level. Let that trade rock and boom. Now, when you hit a 15-point stop loss, you have this massive 298 basically 300 point trade down here before the market closed. But absolutely nuclear trade. Um, and the risk-to-reward on this thing is massive, right? Obviously, you're not going to have a 16.5. This is just like a little chart drawing. It's not real numbers. Um, but your risk-reward on this trade is probably going to be in the around the 300 points whenever we've caught these trades before. You're looking at like a six to an 8 R trade, right? as you scale out of the trade on the way down, you're looking at a really big risk-to-reward ratio trade. So, that's the beauty in identifying these setups.
All right, so hopefully this was able to give you guys some uh some real value here. Let me go to show you MU really fast. So, MU, as you can see, exact same concept I had here. I was really watching for that pre-market high range to see if it could bust out of this range. MU, what I also noticed on MU was this was diverging from the markets. So, I look for divergence plays quite often. Uh the beauty of being an options trader, you have the ability obviously to trade multiple tickers, right? And MU recently has gotten extremely extremely strong. So MU, I was a big fan of this at the open. I was looking for that entry. Uh 36250 was the entry I was wanting to take. However, obviously, you can see it broke it in the pre-market. All I told students, same thing. I said, "Guys, I'm looking for a pre-market high break." So, wherever the high forms in the pre-market, which was right there, roughly at 36,560, which was another level of mine, I said, I'm just looking to take a breakout to the upside. All I need to see is that confirmation on the order book level two, which just means more orders coming in at the ask on level two. Once I see that confirmation flow through, it's quick. Don't get me wrong, it's quick. Your first time doing it, you're just going to think you're looking at random numbers. It's not going to make sense. But the more you see it play out, practical application, downsize, let things work out, or don't even trade, just watch it happen. But you'll start to see these orders start to work in real time. That was all I needed to see for that execution to the upside there. And you can see beautiful move to the upside. Uh again, forming new all-time highs. I had the 380 calls in this. So, I literally targeted 380 because I have no more real data to go off of. Once we got above 36989, I had nothing else. And I just told everyone, I was like, "Look, I'm just going to trim uh roughly up there at 3 380 because my contracts will flip in the money. They'll gain a premium increase. It's just going to bode well for me, right? We'll probably be up a lot more." and that's where I'll take a majority exit. And sure enough, that's exactly where price rejected. So, that was more so just getting lucky there because uh obviously I can't read into the future. I don't know what's going to reject at 380. Um but just because of the strike price I picked, I was trying to let those contracts play out. Um but again, this was based I only found this this trade because of the market divergence, the strength this had uh in relevance to the rest of the market and how strong MU has been the last few days. MU has been extremely strong. This has been a key player in the space. Uh it's almost like all the buyers have shifted from Nvidia over to MU. We were doing the same thing on Nvidia a lot before last year. So I've kind of just correlated over saying, "Hey, where's the volume going? I want to follow the flow. I want to follow the flow." That's kind of how I think about volume. You follow the flow, your trades will be much, much easier.
So hopefully this provided some value for everybody here. Again, I go over all of my trades live on my YouTube. Well, not live on YouTube, but I post the live trade on YouTube. And then from there, I also like to provide as much value as I can. Everything I'm doing recently, this entire year, I'm posting all of my live trades, all of my education. It's all going to be completely for free on my YouTube because I'm trying to get traders to see that is completely real, that you can have a high win rate, you can have a high riskreward ratio, and you can be done within an hour. You do not have to sit at the computer for an hour and a half, two hours. I think that's absolutely absurd. at an hour, you should be cutting it no matter what. All right? There's too many traders that teach a just completely wrong education, terrible trading habits. They just tell you to, you know, blow your money on prop firms left and right, and they don't give any real education or value on their live streams. They might enter a trade here or there, but there's no real value being given. And that's my goal going into the rest of 2026 and forward. I plan to do this for a very long time is to provide as much education as possible. Constantly do my live trading, constantly explain the trades I'm taking on the live before taking it, why I'm taking it, why I'm trimming out of it, why I'm exiting the trade. If I get stopped out, I'm going to call my stops, the whole nine. I say everything verbatim, my fill, everything. It cannot be more clear-cut. All right? The reason I do this again is to provide maximum value and education to the trading community so that people can see how this works out. And again, you don't have to pay a dime. You can just watch all this stuff on YouTube, okay? Doesn't matter. That's the best way to learn is seeing real life application of an actual strategy work in real time. All right?
So, um, feel free to check out the rest, guys. Subscribe if you feel the need to. I would really appreciate it. It's going to help me keep making these videos and keep going forward. People that have already subscribed absolutely love it. Um, I didn't personally, I didn't think any anyone would care about this stuff. So, it's cool to see people actually care. and leave some comments below if you want me to go over any certain types of strategies or if you yourself, hey, James, look, I trade the 50-minute orb. Can you go over that, what's your take on it, how would you teach it, etc. I'd be happy to go over these things for you guys. All right? Um, so just let me know.
All right, guys. Uh, but don't give up. Don't give up on day trading, man. This is one of the best skills out there. It's changed my life. It's changed my family's life. Uh, my extended family, right? Because, you know, I'm doing as much as I can for the people around me, my loved ones, the whole nine. So, it's it's a wonderful wonderful wonderful uh pursuit to be shooting for, but just remember it is difficult. So, if you show up to this thinking to make quick money, uh the market will chew you up and spit you out. So, don't don't come in here for that. All right.
All right, everybody. All about getting 1% better every single day. Boom. Y'all have a good one. I'll see you guys in the next video. All right. Peace out.