If You Want To Play In This Type Of Environment, Try This

As I have continued to stress, the only thing we can do is sit and wait patiently, you will find a couple of setups each day.  Remember to always identify areas where the S&P's have been exhibiting 3+ point "bursts" in the direction of the trend.  Additionally, the bars that make up that move should be spaced out, in a stair-step pattern like in the chart below.

Notice the same action on this one as well

Now, on the flip side, there will be many times when the market will move 3+ points, however not only will it take longer, but the action will be labored.  Look at the chart below:

Yes, the travel range was 3+ points, but each bar lost momentum at some point before moving higher. This type of back and fill action is tough for most HVT'ers to tolerate. Also, look at the stochastics, unlike most fluid moves there is also no range expansion in the stochastics.  The action here is a constant crossing back and forth, this indicates chop and indecisiveness.  If you want to play in this type of an environment, reduce your share size, push out the time frame and look for specific patterns.

P.S. I also have a new trading module available which teaches how to trade my HVT style through bar-by-bar chart simulations. Click here for information about the module.