Try these measurement goals in your trading

Excerpt From yesterday’s report: Price action
is poised to break, and probably big. Whether that lasts one – two days or
couple of weeks remains unknown. We do know for an absolute fact that a
directional break is imminent. When the price break ensues, please do not fade
or fight its direction. Go with the flow and you’ll make money. Fight the
breakout trend with reversal mentality, and you will likely get hammered. Simple
as that.

ES and ER minis both opened on sell signals
confirmed which happened to be near daily pivot points. A quick drop to S1
values and below reversed in program-slam fashion by late morning. That move
took price action right to the top of its recent week-long stale range. From
there, bulls had to prove that the vapor trail upwards could continue propulsion
higher into the close…

… and they failed. Once price action broke
those flat coils lower, every level from R1 down to S2 gave way as support and
confirmed new resistance on lift & fail into each mark at black arrows shown. It
wasn’t an easy morning to trade, but the afternoon was 100% crystal clear: short
all the way. There was absolutely to reason to try buying any emini symbol
anywhere once the downside trend began. Traders using any method that had them
buying this strong trend move are best served to discard such a failed approach
asap. Normal price action days like this are where the big cash is made… not
trying to weasel two dimes from those micro-range aberrations we see from time
to time.

This price break, normal range session was
clearly expected, predicted and very simple to trade from the short side only
for those with trading methods that work. 

“Simple” is not always easy. I found myself
taking profits too fast from three different ER trades that eventually went more
than +5pts from entry. But I was jaded from five of the previous six sessions
being abnormally micro-range and choppy. Made big money per contract yesterday,
but it could have been huge money if I had stuck around a couple of those
winning trades longer. Now that the incessant chop has abated for now, it’s time
to hunt the big swings today and probably for awhile.

S&Ps halted and held right on 38% of the most
recent swing higher. Prior four sessions of ascent were erased in the afternoon
swoon. Continuation lower is expected, with 1295 area dual confluence of 62% and
the 50-day moving average magnets.

Russell 2000 sees initial support near 732 at 62%
of most recent swing, with 729+ the 50-day moving average just below. Bearish
engulfing candle that swallowed the previous four sessions in one swoop lower is
not likely to reverse green today. Possible, but not probable.


Trading is a game of patience. Too many struggling traders fixate on trying to
be profitable every day, even if they must resort to settling for meager gains
to meet their emotional need. I respectfully suggest it is far easier to set
weekly and especially monthly goals for personal measure. A week like the one
just past may result in small to modest losses. One single day like yesterday
can easily erase that entire week’s net loss, and make one net profitable by
day’s end.

I know that is true for a fact, because I did it
myself. That is not the first time a tough week of trading and small-loss result
has been eclipsed in 6.5 hours of normal market action, and it surely won’t be
the last in my career. At month’s end, the positive ledger ignores what happened
each given day or even one week. The months ledger only measures what took place
during 21 sessions averaged, and averaged sessions ALWAYS include many normal
market ranges.

Free yourself from miniscule daily performance
goals, and direct your focus to trading each day to its utmost potential. The
net result at month’s end may readily far, far exceed your previous expectations
with ease.

Bring on the return of market normalcy, and let’s
rock!  ;>)

Trade To Win

Austin P

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