How to use Stop Loss and Take Profit Targets Lesson

In this lesson, you’ll learn how to strategically place stop loss and take profit targets using gamma levels and support and resistance areas. We walk you through real-world examples across multiple futures markets to show you exactly where to enter trades and how to protect your capital.

The lesson begins by identifying Gamma areas where you have range on the GEX one and one day max. These areas provide strong support and resistance levels along with the core resistance, unity, and high volume 0dte levels. Once you map out these key levels, you can develop strategies for entries and exits. For example, on the 15-minute chart, you can identify short opportunities if the market breaks below certain gamma levels, or long opportunities if it breaks above. The key is avoiding risky middle zones and waiting for confirmation in areas with strong support and resistance.

When placing your stop loss, you should position it at strong support or resistance areas that protect your trade from normal market pullbacks. For instance, if you go short at 9914, you might target 19,822 or 19,727, but place your stop loss above a strong resistance level that won’t be easily broken. The same principle applies for long trades—place your stop loss below the range to give your trade enough room to develop. Once your trade moves into profit, you can move your stop loss to break even or slightly in profit, which protects your capital while letting the trade run.

A practical example from crude oil demonstrates this approach. By identifying gamma levels like one day max and GEX one, you can enter a short position when the market rejects at the top of the range, place your stop loss at the strong resistance area (risking around $380 per contract), and target the one day minimum for potential gains of $1,200 or more. In the actual trade shown, profits were taken at $500 per contract after moving the stop loss to protect gains. This same scanning method works across NQ (NASDAQ futures), CL (crude oil), GC (gold), and ES (S&P 500 futures).

You’ll also learn to use the Fibonacci tool to find the 0.5 level (50% retracement) within your identified range, which often provides excellent entry points that align with rejection areas. For gold, you can identify two main opportunity areas using levels like put support, one day minimum, and high volatility. On ES, combining core resistance with one day max creates powerful short setups, while high volatility put support and one day minimum define long opportunities, though the risk-reward may favor short positions depending on the range.

The most important concept is that you don’t need complex tools—once you understand where your gamma levels create strong support and resistance zones, you can scan multiple markets for high-probability trade setups with clearly defined stop loss placement and profit targets.

Video Chapters

00:00 – Finding good entries using Gamma areas and ranges
02:37 – Strategic stop loss placement at support and resistance
05:27 – Crude oil trading example with risk-reward calculation
07:15 – Using Fibonacci tool to find 50% entry points
09:18 – Analyzing gold opportunities with gamma levels
11:24 – ES (S&P 500 futures) setup analysis

Key Takeaways

Place your stop loss at strong support and resistance areas created by gamma levels like GEX one, one day max, and core resistance to protect against normal pullbacks
Once your trade moves into profit, move your stop loss to break even or better to protect your capital while letting the trade develop
Use the Fibonacci 0.5 level within your identified range to find high-probability entry points that align with rejection areas
Apply this gamma level scanning method across multiple markets including NQ, CL, GC, and ES to find the best risk-reward opportunities

Video Transcription

[00:00:00.10] - Speaker 1
First things first. So to find good entries we must understand that we're looking for for Gamma areas where we have also some range. We have some range on the GEX one and the one day max. So this is a nice area where we have strong support and resistance. You are agreed to the upside and also to the downside. We have strong support and resistance on the core resistance unity until the high volume 0dte. So this is the only thing what we could possible map out. And then we can develop some. Some strategy where we can possible have some entries and exit. So if we go now to the 15 minute. All right, 15 minute. So what will this means for us? So we can say we have a nice short opportunity. To the downside if you're breaking here, we have a nice short opportunity if you're breaking here. But we have also the same long opportunity if you break here. I will not going long in this area. I think that's too risky. But here we have. Here we have a good one.

[00:01:11.06] - Speaker 2
Yeah, but I was thinking about your. The area you say we not going along in the middle.

[00:01:18.03] - Speaker 1
But no, no, I would not is.

[00:01:21.10] - Speaker 2
Is to put support the co resistance. Now adding acting as a support or.

[00:01:26.23] - Speaker 1
Not let's depend on what area we are. So we. We. We. We can act. We can. We can have the support in this area and this in this range. So this would be our support and resistance. So if we come in this range. So you can short of course from 950 maybe to here. And this will be act as support and resistance. But personally my long I would be feel comfortable if we be over 20k. And if you're below 20k I would be only short because the 20k is an area where we have I think strong resistance naturally. But this would be nice areas where we can go into the market. And also what we have when we looking to support and resistance. We have here our stop loss. If we go short here in this area. We can place our stop loss here. Because why we can do this? We have some strong support. If we go short here on the area 9914 then we can say okay, we won't go to. I don't know to 19-822 or we won't go to 19 727. But we have a strong area where we'll protect us.

[00:02:37.18] - Speaker 1
So if we get the pullbacks for the market. This will be not an easy opportunity to break this levels.

[00:02:44.20] - Speaker 2
Yeah.

[00:02:45.06] - Speaker 1
No.

[00:02:45.14] - Speaker 2
Okay. And.

[00:02:46.14] - Speaker 1
And for this reason this would be a good area for.

[00:02:51.17] - Speaker 2
Stop loss.

[00:02:52.12] - Speaker 1
For. For stop loss. Yeah, and, and the same way you can play this also on the same way. If you go like here, if you say okay, I want short here, I like the opportunity. You can place your stop loss here and then you can take it. If you want go long, you do the upper side. You can say okay, I place my stop loss below the range and I take the long here. And if you like the long on this side, you can do this in the same way. Understand? And then you have a nice risk reward. You can say it's a. We go 20k and maybe we can go again to I don't know, 20, 100, 200. But this doesn't mean if you, if you. If we place our stop loss below the range, this doesn't mean that we must use the full stop loss here. If we be in profit, we can easily go and move our stop loss. So maybe to break even or a little bit tiny. So this doesn't mean it's only for the beginning to start with so that we have enough room that our trade can develop.

[00:03:57.19] - Speaker 1
If our traders develop in our favor, we can easily move around.

[00:04:03.05] - Speaker 2
Yeah, exactly.

[00:04:04.12] - Speaker 1
Okay. And this is so, so powerful. If you understand this and, and then I would say you will not need level two. So if you know in which area you can go. This is, this is very powerful. And you can also. I was shooting today the crude oil. We go here. I have my gamma levels copy and paste. Put this into my. And this is how I'm looking and scanning the market for opportunities where I can trade. So. All right, so what we have yesterday on. On the levels I can show you monitor. So tiny and small. So we have yesterday in this area. I think it was one day max and GEX one, something like this. Yeah, it was in this area here. And I was shorting when we was open and was placing my stop loss here on this area where at the moment Gags2 is. And then I let my short run overnight because I know this would be an, an hard area to going truth. So we was rejecting here. I was rejecting here, rejecting here, and then I was going in here. So we. Because I get the confirmation that we often rejecting on.

[00:05:27.24] - Speaker 1
On the top.

[00:05:29.02] - Speaker 2
Yeah.

[00:05:30.03] - Speaker 1
And this is some, some area where you can enter the swing. You can say, okay, what can I risk? If I trade only one contract, my risk was 380 maximum. But if I want go to at the moment to the one day minimum what we have here. I think this was my target. Something like this, then I would make,200 or 1200.

[00:05:53.05] - Speaker 2
Yeah.

[00:05:53.17] - Speaker 1
This is a nice risk reward, but I was. I was taking my profits when I was in profit with US$500 per contract.

[00:06:01.24] - Speaker 2
Yeah.

[00:06:02.22] - Speaker 1
And this was. This was. This was perfect. And I moved my stop loss directly and then, boom, I let it run. And so this is how we can scan the market. So for opportunity now where we have the concept again with teamwork and. And strong areas where we can hold so the put support and one day is your dte. You see this here?

[00:06:24.18] - Speaker 2
Yep.

[00:06:26.02] - Speaker 1
So this would be an area where we can think about what should we do? Yeah, we can say, okay, would we go long here again or won't be short? Because below this we have now the gags one and the high volatility. So we have at the moment two areas. We have this area and this area.

[00:06:50.05] - Speaker 2
Yeah, that's hard to break. You mean for the market.

[00:06:53.10] - Speaker 1
Yeah, it's. Yeah, we can. We can easily go into this and then we get the support here. But to go and prove this, this would be very hard.

[00:07:02.01] - Speaker 2
Yeah.

[00:07:02.11] - Speaker 1
Okay, so in this case, what I really like to do is draw your. Not the risk reward. Your Fibonacci.

[00:07:13.18] - Speaker 2
Yeah.

[00:07:15.02] - Speaker 1
Where's my Fibonacci? Here? We can draw our Fibonacci from the range and then find the 0.5 level. So this would be this area.

[00:07:32.19] - Speaker 2
Yes.

[00:07:33.01] - Speaker 1
All right. And we delayed the Fibonacci. And then we can say, okay, look at this. This would be a nice entry point, the 50%. And it matched again with the area where we was rejected. Look at this. Boom. Rejected. Rejected. Yeah, it's perfect.

[00:07:50.03] - Speaker 2
Yeah. Yeah, I can see it now.

[00:07:52.07] - Speaker 1
Okay, so for this, for this reason now you have, for example, some idea where you can go into the market on earliest. Where it looks very nice to go into the market.

[00:08:03.08] - Speaker 2
Yeah.

[00:08:04.15] - Speaker 1
And you can place your stop loss again. So if you want long here, you can place your stop loss here. Of course you will lose something. It's. It's a big, big area, but. It's a big area. But you have enough room to run. If we. If you came to draw down and we came back, you can go easily. But you must know because at the moment, with the Middle east war with Lebanon and Israel, the market is a little bit crazy. So it's. It's volatility because of the news. But this would be a nice area for long or too short, no matter what you want. And then we can go to gz. This is good. Here we go. We put this also in. Boom, boom. We make it visible and then we're looking again for crazy Areas And I see it. You see it also one mix and call resistance. For example, this would be our area. Here we go. Checks even. No, it's not an area. And one day minimum, this would be also our area.

[00:09:18.10] - Speaker 2
Yeah, yeah.

[00:09:19.23] - Speaker 1
And I think that's it. So that's our two opportunities for today and gold. So what we're doing is look at.

[00:09:27.23] - Speaker 2
Yeah, that's very clear now. Yes, I can.

[00:09:30.07] - Speaker 1
Yeah, that's our two opportunities at the moment where we can go into the market if, if we play again around with our Fibonacci tool. Here we go looking for the 50% area. It's like here.

[00:09:56.16] - Speaker 2
Oh yeah, you see already some.

[00:09:59.13] - Speaker 1
So then we have the 50 area because it's a big range. So then we can say okay, once we go again long here when we came down here, what we short when we hear because we have a nice stop loss. It's. It's a nice area for stop loss placing here for the short.

[00:10:15.09] - Speaker 2
Yep.

[00:10:15.23] - Speaker 1
Long here. Same principia. If you want long here, if you want short here. And if you want to trade this, then I would say okay, our stop loss could be in this area here. So then we have enough room to let it come to us. So if you want go entry here for the long to maybe here, then we must accept this. But the risk reward is only one to one. It's nothing big.

[00:10:42.10] - Speaker 2
Yeah, no, yeah.

[00:10:44.23] - Speaker 1
But this is how you can play this. So then you have setups for gold, you have setups for CL, you have set up for NASDAQ. And now let's check out ES, the S P 500 futures. Put this in. And you see the beauty is we have four levels here where we can put in. We can, we can looking for nq, cl, GC and es. So all the four main ones. And then here we go. What we have on es. I see it directly. I think you see it also. Look at this. Core resistance. One day max. Boom on the top.

[00:11:24.05] - Speaker 2
Yeah.

[00:11:24.23] - Speaker 1
Nice. That's.

[00:11:25.24] - Speaker 2
Yeah, that's. That's the.

[00:11:27.22] - Speaker 1
For.

[00:11:28.06] - Speaker 2
For the short, right?

[00:11:31.14] - Speaker 1
Yeah. And for the long. Oh man, this is a big area. We have the high volatility put support.

[00:11:37.16] - Speaker 2
Yeah.

[00:11:39.12] - Speaker 1
This would be here. We can also say okay, maybe the one day minimum.

[00:11:43.14] - Speaker 2
Yeah.

[00:11:43.24] - Speaker 1
But let's say okay, we make it much. A little bit tinier. And then short would be a better.

[00:11:51.24] - Speaker 2
Risk reward at the moment.

[00:11:53.16] - Speaker 1
Yes, of course.

[00:11:55.04] - Speaker 2
Yeah.

[00:11:55.16] - Speaker 1
The long take a much more risk. Normally we have to do. I would say also to using the one day minimum to this. This would be mixed.

[00:12:04.17] - Speaker 2
Yeah, exactly.

[00:12:05.05] - Speaker 1
Yeah. Yeah, but then. Then we see the risk reward. It's a. We have to. To take a big risk for the long to here. Yeah.

[00:12:13.24] - Speaker 2
Very big. Yeah.

[00:12:15.18] - Speaker 1
So we have to place our stop loss here. Yeah, but did we need the full stop loss maybe to let the trade enough space, enough room to run and then if you be in a profit, we can move it. Of course. But I like more the short. So maybe like place. Place the stop loss be here because we have here some. Some big maybe place the stop loss here. And then let's go now to. To recap this. So if you go to NQ again.

[00:12:44.20] - Speaker 2
Yeah.

[00:12:45.07] - Speaker 1
What do you have. You have some opportunities on nq. Here we go.

[00:12:50.21] - Speaker 2
Based on this principle, determine the levels, then the areas. I mean then you delete levels and you only keep the areas. Yeah, it's very much clearer. Yeah.

[00:13:01.19] - Speaker 1
Yeah. And then you find your good entry points. And if this not if this doesn't hit, then you have not to show show up in the market. So then let's take. So yes we was before. Okay. And here we was covering cl. Good ill. Here we go. So our next areas would be here would be really interesting. And then when we look into gold again where we have our areas. Okay. Here and here.

[00:13:34.11] - Speaker 2
So you Patrick, so you, you personally also wait for those levels.

[00:13:38.11] - Speaker 1
You do nothing. Because of course what I'm doing now is I set my all out. For example here, add all out and GC and then I add all that here so that I know exactly if we came in this area, I get enough enough time to. To react. So my OLED is here. My OLED is here. I will do the same for the nq. Here we go. I set my all out. So where we are. We are here. Okay. Then this would be my next outlet at outlet here for the down move. I think it's like I would add my OLED here and then we go back to the es same princip. Add all it here. For the down move. We add all here and then. Did I miss something? Gz. Did I cover gz? Yes, I cover. I cover everything. So now everything is set on my end. Yeah. If I get. If I. If I get the notification, I will be there. If not. Happy day. Happy trading day. So yeah, and. And this, this is the only areas that makes sense to trade.

[00:14:58.10] - Speaker 2
Yeah yeah. And it's.

[00:15:00.00] - Speaker 1
It's. It will be so simple and easy. So if you understand this, you. You can look into gold. You can look to S P 500, you can look to. To the NASDAQ. You can look to crude oil. You can do this also with the Dow Jones. You can do this with the Russell 2000s and then you have so many opportunities at the end.

[00:15:19.22] - Speaker 2
Yeah but.

[00:15:21.06] - Speaker 1
But you have only to show up when some area is coming to your. To your attention. So as I say don't trade. Don't trade the market. The market should come to you. And, and that's, that's the main reason my friend.

[00:15:37.14] - Speaker 2
This is much easier and and calmer to trade.

[00:15:41.07] - Speaker 1
Of course I was trading overnight the good with this concept the Earl with this concept and it was so. It was so easy for me. I. I was thinking okay if I be wrong what I'm losing US$380. Okay if I be right man, I make so much money and I know to be wrong it needs. It needs a little. It needs something to break because we have too strong and areas that think about the teamwork. Yeah. So we have two gamma levels to protect us. Yeah, two strong gamma levels will protect us and that's it. If we break this of course did we have a win rate from 100 never ever. But we have. I will have. I would think we have more more success with this as when we go blind into the market. And this is why I'm. I'm. I'm. I'm. I'm love to have so much free time because I get not stressed from the market. I, I get. I came only when, when there when the levels are hitting and then I'll be there. But I will never place limit orders or something like this because it makes no sense because you won't see with what price action the market came to this levels.

[00:16:51.07] - Speaker 1
If the price action is like amazing crazy like what we have in the past on the CP cpi move Singapore for one week and you placed your limit order in this case then.

[00:17:04.06] - Speaker 2
Oh yeah, you will be guilt.

[00:17:10.02] - Speaker 1
Yeah. So this is why also about when we speak about timing, location, setup. So we have the location, we have the setup. But where we have to be really careful about is about the timing so that we don't that some news doesn't hit us or something like this. This is our only job. If we get the alert look into the market make it sense to show up. Yes. Not okay, boom. Check the news. Check the economic calendar. Is there some news what's coming out at the moment? What can. I don't know can wipe us immediately. No. Okay, then let's take it.