Tightest Range Week of 2022 Just Finished. Move Incoming. August 8th Plan

We just put in the tightest range week of 2022 in ES, and as most following all week here know, its been a fantastic chance at education on how to trade choppy consolidation phases. As Paul Tudor Jones famous said, markets only trend 15% of the time, the rest is chop. Learning to trade consolidations is a non-negotiable, essential part of succeeding at day trading and I would encourage readers to re-read last weeks newsletters to get the overview and see how I traded the exact same recapture setup essentially everyday last week.

Friday was no different, with the standard initial trap move after jobs yesterday morning, which held 4105-4110 support, then closed right in the middle of the range. This takes us to next week. All consolidations result in explosive multi-day trends, and this will be no different. In today’s newsletter, I’m going to discuss how I traded yesterday via the trade plan (it was messy), talk Monday’s plan & the clear pattern forming, and discuss some risks here including an analog which resulted in a 500+ point selloff in ES.