Trading Chop - Market Analysis for Aug 4th, 2020

Quick word for those new to trading, or particularly for those new to EW analysis. Often sideways action leaves so little clarity in structure that there is little edge in whether the asset will break to support or just grind up and out in a choppy overlapping structure, called a diagonal in EW talk. The tactic in this situation, if support matters to your trading is simple: 

1. Ignore the entire correction and wait if the support level for the consolidation is too small of a timeframe for you to care. For example, to my core BTC position this timeframe is too small to care. For my ETH scalps, it does matter. 

2. If it matters to you, reduce position to a size that, if we broke support, you wouldn't mind the small loss. 

3. Leave remaining ammo for a buy and stop at support. Right now that is buy $10,400 stop just below $10,225 BTC, and $300 ETH with a stop just below $293. 

4. If the market decides to grind up and out, learn to be happy with your profit, without FOMO. FOMO is the death of so many traders. 

Ryan Wilday hosts the Cryptocurrency Trading service on ElliottWaveTrader.net.