Market Analysis for Aug 10th, 2020

Friendly Reminder - Summer Time Tendencies + How Ricky Keeps Winning

As discussed previously, summer trading is in full effect in regards to intraday/short-term setups. This means that market participants should strategize and focus on the highest probability setup per day and then walk away.

Generally speaking, there ‘should’ be at least one decent opportunity every single trading session (excluding holiday half days) during 9:30-11:30AM ET. If following this theory/gameplan, that means every morning there should be something similar to a double bottom/higher lows/double top/lower highs type of playbook. (usually higher volatility during morning moves as there’s strong liquidity and volume)

In addition, playing along with the ongoing established trend obviously yields better results based on statistical advantages. This goes hand in hand with the market being designed to go up in the long run over a period of time.

Zooming in, I like to think of quick intraday scalping setups (especially during summer time) like a quick bank robbery exercise. You get in, do your job and get out swiftly. Don’t try to overstay your welcome or get greedy because that’s how you get your hands caught in the cookie jar. 

In today’s example, a temp high formed during the overnight session with the ES 3355.5 print and that was backtested after the RTH open with the double top formation that got rejected quickly. Today was a range day context with a gap up.

For the range high setup
1) Traders could had either blindly shorted at 3355 with a tight stop or 2) shorted at around 3350 like us with a stopout at new highs after the turnaround formed from the price action.

For the range low setup

1) Traders could had bought at the 3330s with a stoploss order undereath Friday’s low of 3322~ and see if they can get back to range high 3350s or trail for additional upside in the coming days

Remember, there are many ways to trade and be profitable in the markets. Leverage your time wisely so you could do more things and be productive! Preserving your mental +emotional capacity is quite critical to stay in the best game on Earth. At least that’s how I keep winning and stay in playoffs mode, day in and day out.

 Again, this is quite true during summer time trading and especially August when the average range and volatility becomes relatively lower. Ricky has spent years perfecting his style to fit his own schedule. You have the potential to do the same thing and become better at it! 
 

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Ricky Wen is an analyst at ElliottWaveTrader.net, where he writes a nightly market column and hosts the ES Trade Alerts premium subscription service.