As I do every day — whether I’m trading on my own or leading a Futures Trading Lab session with S&P Edge Pro members — I started the morning with my pre-market analysis.
It suggested there may be some choppy conditions, but also that there was room for downside. I made note of key support levels to watch and sat tight.
Then the market opened at 9:30 AM Eastern. A big red candle on the 3-minute chart shook things up. The kind that makes you think “is this the start of the move, or just noise”?
I had the right price trend direction… but my trade entry wasn’t ideal.
E-mini S&P 500 Futures September 2025 contract. TradeStation symbol ESU25. Tuesday July 22, 2025.
This 15-second chart shows both the early short trade (entries and exits at labels 1 and 2) and the later Gann candlestick trade (entry and exits at labels 3, 4, and 5). You can refer to it as you follow the breakdown above.
Trade #1: Too Tight, Too Soon
I went short based on the 3-minute chart, and you can see it on the 15-second execution chart where label #1 is marked. I placed my stop 4 points away on 2 contracts for a total of 8 points ($400 potential risk)— as I always do per my ES futures trading plan.
Price climbed instead of falling… and got within 3 ticks of my stop order. But it didn’t take it out.
The RSI Power Zones had peaked near the Bull Resistance zone, so I managed the trade with caution from there. At label #2, I got taken out on a trailing stop, thinking the uptrend might continue.
But it didn’t.
Price tanked. Clear as day in hindsight. Whether you were watching a 3-minute, 5-minute, or the 15-second chart I used for execution, this became a persistent downtrend.
And I was out of my initial short trade. Watching it all unfold without me.
So What Went Wrong?
Honestly? My entry at #1 was a bit aggressive.
As I walked my students through it in real time, we saw that the better short entry would’ve been just a point and a half higher — around 6347.50. That doesn’t sound like much, but it would’ve made a huge difference.
- My stop would’ve had more cushion
- I would’ve been mentally more relaxed
- I could’ve accepted the risk more fully — and held on
Accepting the risk of your trade is key to withstanding consolidation and staying in when the real move begins.
I didn’t do that this time. I got frustrated. I stepped out. But I didn’t spiral.
I regrouped.
The Second Trade: Gann Candlesticks Comes Through
Later in the session, I saw a Gann Candlestick pattern form on the 3-minute chart — yes, these work intraday, not just on big-picture timeframes.
That setup became my re-entry, marked at #3.
- I shorted at 6330.00
- Took quick profits on the first contract — just 2 points per my trading strategy.
- Then trailed my stop behind Price Highs on the 15-second chart
You’ll also notice a vertical cyan blue line — that marked the Richmond Manufacturing Index data release. It didn’t move the market much, but I had it noted on my chart for awareness.
My second contract exited at #5 on a trailing stop, locking in additional gains.
This wasn’t a blockbuster win — but it turned my day around!
From Red to Green — But Not From Emotion
I started the day down $205. I finished it UP $228.
That change in profitability wasn't from chasing the earlier downtrend.
It came from:
- Observing price objectively
- Letting setups form in their own time
- Executing based on my plan
Yes, there was some frustration earlier. But I used the tools I teach — like the Gann Candlestick patterns — to refocus and take the next setup with clarity.
You don’t need to be perfect to finish strong.
Final Thought
Sometimes you’ll read the trend correctly — and still enter at the wrong time.
That’s okay.
What matters is how you evaluate that decision, how you recover, and how you stay mentally clear to catch the next setup.
Today, that next setup was a Gann Candlestick. And it came through right on time.
~Hima
Leave a Reply