Micro E-mini (MES) Price Action Trading: How to Trade
The MES, also called the Micro E-mini S&P 500 contract, is 1/10th the size of the regular E-mini S&P 500. That means, instead of each tick valued at $12.50, the MES lets you trade at tenth of that value, $2.50. For many traders, the comparative reduction in financial impact is appreciated.
With an understanding of the tick size, you may notice that a profit of $2.50 per tick, with broker fees applies, indicates that a trader needs consistent and sizeable wins to lead a relatively comfortable lifestyle. For this reason, the MES can be considered a real-world training ground that is the next step after simulated/paper trading.
DayTradeToWin has many price action trading methods.
The MES and ES match in price activity nearly identically. This means that the activity of the MES closely reflects that of the ES. That said, the DayTradeToWin trading methods such as the Roadmap, Atlas Line, and others will work with both markets/instruments.
This video shows DayTradetoWin’s Roadmap drawing guidance on the chart in the form of signals and Zone lines. The entry signals should be fairly easy to understand – a short signal followed by price dropping is an indicating that a trade placed according to the method should result in a win. The Zone lines can be a bit more mysterious.
A Zone line is a potential marker for a reversal or continuation. Does that sound like the clock is twice right? Well, this is not so. A third possibility is not predicted by the Zone, yet is possible, which is chop midway through or along the Zone line. This is not predicted or said to be the case with the Roadmap. Other examples could be provided, but this should be adequate to address that point.
You’ll see how there was a great opportunity as price broke through a Zone, and as expected, continued on through, in a bearish way.