[00:00] Trading Spy and QQQ is like betting Rent on the Super Bowl coin flip. You told The market opens. You see spy bouncing off the ADMA. Your mind screams, "This is the EMA retest." So, you grab those calls feeling like a genius who just
[00:15] cracked the code. And guess what? 20 minutes later, price goes back down. Your stop gets hit. But guess what? You can't be wrong. So, what do you do? You price reverses again. It's 10:00 a.m. You're three trades deep and you're down
[00:31] 28% on your count. Here's the brutal truth. The setup didn't fail. The system is still valid. You just decided to play heads or tails on a chop day. The market, it'll tell us what it wants to do every single day. We just have to
[00:44] listen. Look, I hit 100enters on spy every single week. I've been posting these for years. Same setup, same LE model, same magical purple line. The difference is is I know when to trade and when to avoid the indices. All you
[00:57] have to do is know your levels. So, in this video, I'm breaking down exactly how I master trading the indices, how to spot chop before you lose even more push the size. If you have a small account or trade prop firms, or just
[01:12] husband, whatever you're into, this video is for you. This is how I mastered trading spying QQ IWM. Everyone knows it. You love the indices. Everyone loves
[01:25] hitting multibaggers, but most of you don't know how to actually hit them, unless it's luck. But let's turn that coin flip into high probability trades into. Don't care. But let's get into it. So, I have been trading the indices for
[01:41] years. I have been trading zero days before zero days were a thing. So, zero days used to only be on Monday, Wednesday, Fridays. And then in 2022 day. But this is just my collage. I mean, almost all of them over 100%.
[01:57] Look, I've been doing this a long time. I will teach you exactly what my bread and butter setup is. So, you can do the same. And not only can I do it, I teach now. You can see Jimmy, he took a nice three contracts on spy, not a big lot,
[02:13] but he made 500 bucks. That's easy money. Bread and butter setup. Davis, 80% on QQQ off of a reversal. These are all concepts I have taught for years and you can just follow it and do the same. So I only trade my bread and butter
[02:27] that this is a EMA retest. It's above all the levels that I want to be above the pre-market high, the previous day high, and the pre-market low. Price, it
[02:40] makes a large move off the open. That's okay. And then it rejects and comes down and breaks the ADMA. That's not the entry. The entry is when price settles. it gets its feet. Okay, it's a little unsty. Once it settles, it forms what we
[02:53] call consolidation. You get the pop. Then you get a pullback and that is where you enter. You ride this thing all the way up to the highs. That is my bread and butter long. I trade this setup every single week. Whether it's
[03:05] SPY, QQ, IWM, scroll my feed, and you will see me hit the same trade over and over and over again. On the short side, it's not different. It's the same setup except it breaks the previous day low, the pre-market lows, and we just hit it
[03:18] on the EMA pop, which is signaled right here. That's all I'm looking for. I'm looking for those EMA pops that I can short. Remember, we follow the LE model. If you don't know what that is, I will explain it here shortly. But the
[03:30] difference is, this is a huge difference is most traders don't know the difference between chop and trend. trend days. A move like this is where you turn your thousand small account into $10,000. That's just facts. Why? Because
[03:44] on trend days, options expand, the range gets larger, and you make more money. On chop days, it's very random type action. You may be saying, "Well, Ellie, I'm so
[03:56] here." Well, that's great. If you want to do it on chop day, by all means. The problem is is if you short it on a trend day, you are going to miss out on free money. That is why I don't trade chop days because it gets you into a bad
[04:11] guessing. Okay? No one's levels are as good as you think they are. Trust me. Follow trade the trend days, the free money days as I call them, and avoid the
[04:23] chop days. If you can just do that, I'm telling you, you can increase your win rate 20, 30, 40%. It's really that easy. And I'm going to explain to you the difference between these two days so you can identify it and not get bagged. So
[04:37] what is chop? Chop is pingpong. Okay, pingpong all your gains are gone. Why? Because you think it's a long up here and you get rinsed out. You think it's a the pre-market high and it goes back down." This is frustrating action. I've
[04:52] chopped. That's why I avoid it. All it is is where it's an inside day. I'm in a habit of shorting these highs and getting all getting fancy, okay? It
[05:07] doesn't make any sense. You're going to make like 10% this move down. Woo! On a your mind, especially you trade a small account or you're trying to grow a prop firm, whatever you're into, please pay attention. So, why is chop low
[05:22] probability? Chop by definition is low probability. You can see price is ping-ponging back and forth. It is what we call an inside day. Remember,
[05:35] everything we do in trading is based off the daily chart. Everything, if you don't know how to read a daily chart, just understand this concept, a daily chart. Okay, this is the previous day's action. We can see the previous day low
[05:48] and the previous day high. SPY made a large move, a large candle, a big range day. When stocks are tired, what happens is is the next day they sit inside of
[06:00] the candles, meaning it forms an inside day. This is the the candle you're trading on the daily. You want to avoid that at all cost. Now, what is a trend right. Remember, you want to capture this move here because this move here is
[06:18] going to turn your small account into a medium-sized account in just one trading day. This is a trend day. It's clearly going up and to the right. Now, why is do is based on the daily chart. We are forming an outside day. By definition,
[06:35] the daily chart is going higher. So, that means that the 10-minute time frame is also going to move higher. So, look, previous day low right here. Previous day is right here. Now, the low of the day you're trading, aka the low of the
[06:50] day or the lot as we call it, is right here. And look at the high of the day. That is why you get big trend because it's breaking outside of the daily range. It's forming a outside day. High probability. Daily wants to go higher.
[07:03] Means the 4 hour wants to go higher. The hourly wants to go higher. The 30 minute, all of it wants to go higher. That is the type of day you want to trade. Not random chop. Now, you're probably wondering, well,
[07:18] want to get a piece, but I don't know where to enter. I hesitate. I'm scared. Well, lucky for you, I trade something called the LE model. It's very simple. It's levels first. Okay? And for trading spy, this is going to be a little bit
[07:33] enter off previous day high retest or previous day low retest. No pre-market levels. Why? Because you want to make sure you're up and well over the
[07:46] pre-market highs and you're ripping and you're going crazy. then EMAs. So, you want to enter off ideally a level first cuz levels are predefined. Everyone's previous day high is the exact same. Everyone's previous day low is the exact
[08:00] same. Doesn't matter if you're an ALGO, ICT trader, you name it. Everyone's area. And then we want to look for EMAs. Some people trade a 13 EMA. Some people
[08:13] like the 9 EMA. So EMAs are a little bit more dynamic and a little bit trickier when it comes to trading. So that's why levels first cuz everyone has their eyes on this level and then EMAs because they're a little bit more subjective. So
[08:29] let's look at a level retest. A level retest it is very obvious. Previous day highs here, previous day low price, this is the chop the chop range. But then this candle right here breaks the chop range. This is what gets my eyes on SPY,
[08:46] QQQ, and IWM. Now, I'm not going to chase the lows of this candle because I respect my money and I have some decency. What I wait for is a pop. You can see pops right back up to that previous day low right here where the
[09:00] arrow is and then price clearly rejects. Once I see that rejection come off, that is where I'm hammering in my puts. It's confirmed price wants to go lower. If we think about the daily chart, it wants to go lower. So that is why I like the
[09:15] level retest because no matter what, everyone knows it is a previous day low retest. Remember, when you're buying puts, you don't buy puts at the low of day. You don't buy puts on a red candle because you're basically buying the high
[09:28] of the day. So this is our options premium chart. You're basically chasing the highs on the OPC versus waiting for a dip. That is the secret that will increase your win rate just from entries alone. Because if you buy the lows, by
[09:42] 40%. That is why you keep getting shaken out and you keep losing trades even though your thought process was right. So now, what is a EMA retest look like?
[09:55] An EMA is only used if you miss the previous day high retest. So we can see this is the previous day high over here. And look, once it reclaims the previous day high, remember if we're looking at a level retest,
[10:10] we miss it. Okay, but that's okay because now the trend is now established. So, who cares? That's good. We like that because what are we going to do? We're just going to hit all the EMA entries on the way up. Remember, the
[10:23] daily chart looks like this. So that means that the 4 hour, the 1 hour, the 65 minute chart, you name it, every chart is bullish. No matter which way you frame it, unless you flip it upside down. That's why we like that because
[10:35] the probabilities in our favor that we can make some good gains. But the key here is the level retest was firm was first and then the EMA. Okay, keyword
[10:47] you exactly what that looks like. This is what not to do. You are smack dab in the middle of the range and you come in here, you short this random EMA pop,
[11:00] random EMA pop. And what happens? Of course, it stops you out. Now you think it's a long. So then you buy calls because it's over the EMA. What happens on these days is you start overtrading. You get frustrated. You're not making
[11:12] money because it's likely not going to trend. So even if it does go the direction you want, you're going to make 25%. But your head's all messed up because you're already mega red on the day. So 25% isn't good enough for you.
[11:24] You want 125% to make back your losses and sure enough it's a chop day. So what happens? It goes back down and then you get frustrated because it does pop. This is just a cycle. I'm telling you I have seen I call this a chop vortex just
[11:38] absolutely destroy traders and they never come to the market again. Please do not do this. Only trade spy on outside days. Please avoid inside days at all cost. Key notes here. When do you actually trade the indices? when Spy and
[11:54] Kikq are having a clear outside day. Now, this could be individual. Sometimes Spy might rip and Kikq and IWM are are choppy. Some days IWM could be going nuclear and Spy and QQ are a little bit choppy. One of these has to be having a
[12:08] clear outside day, whether it's up or whether it's down. Next, you need to have a strong trend. If you don't know what a strong trend line uh trend is, you can just draw a trend line. Is it clearly going up into the right and
[12:22] congratulations. It is a strong trend. And lastly, other names also have to be bullish. You want your mag 7 to at least be going up, your banking sector, your
[12:35] chips, like just some sort of strength in the market that can carry SPY and QQ and IWM to the highs. When do you avoid it? When SPY, Kikq, IWM are having an inside day. Choppy, sloppy, toppy action. You do not want to touch that.
[12:51] gonna regret it. Telling you. I wouldn't say stick your fingers. You're gonna click buttons in there and you're going to regret it. You're going to have wiki down and then it goes back up and then it goes back down and up. You're going
[13:06] to drive yourself absolutely insane and you're going to think that, hey, maybe therapy is for me. No. No. Therapy is not for you. Okay? You just need to stop playing pingpong. It's not worth it. There's no clear direction. It trends
[13:18] for about five minutes and then now it's bearish for another five minutes and clear direction. And you also have a mixed bag and individual names. Meaning the market doesn't really know what it's doing because likely the day before
[13:33] everything ran crazy. So today it is relaxing. I'm telling you, if you go through all of your trades for January, heck, even last year, if you have time, all of your big losers, I bet you were supposed to avoid this. If you were to
[13:46] follow this framework, I guarantee you all your big losers are because of this exact thing. How do I know that? Because I used to do the same thing. Remember, setups have to earn your money. Be frugal. Be selective. Be a sniper. Don't
[14:05] be the infantry guy running out with a bunch of guns and throwing nades waiting for the perfect shot. Thank you and have a wonderful