in

Dow Jones Industrial Average, S&P 500, Stock, Stock market, Nasdaq p;P 500, Nasdaq, DOW and Russell Volatility to End the Trading Week

First, we made a video about this, but i’ll do a high level recap here so to kick off the week. This is the volatility that we had uh in the s p and the russell we were on the scalper, so very little volatility, the nasdaq on the aggressive, so medium volatility and then, finally, in the dow, we were on the conservative volatility box. So a good deal of all tony in the dow now as the week progressed, you’ll notice that on friday here today, that volatility looked a lot different in terms of the landscape. In the same four major index markets in the s p and the russell we skipped the scalper altogether and we were on the aggressive volatility box. Instead. So one layer up in terms of the volatility that we saw on monday and we had active tests in the dow we were on the conservative on monday. There we dropped two layers in terms of volatility, coming right back down to the aggressive again with an active test, and then finally, the nasdaq remained. As is, we started off on the aggressive on monday and we concluded today starting off the day again with the aggressive models. So all of this gives us an idea of how that volatility landscape changed as the week progressed and in today’s case. I think you’ll notice that this additional volatility that we saw in the morning, especially with these active breaches, led to that one trade that we saw in the markets today.

So let me now dive into charts, so we can take a look at price action now coming into charts here. Let me actually start first with the russell futures, because i think here we had the best trade setting up and the most number of trades two trades. So our trade opportunity in the russell came when price action breached our volatility box sign entry lines, that’s right here. Price action breached our sign entry line. We had two edge signals here, along with an opportunity to enter at the sign entry line, and that was the first trade opportunity. Our stop is outside of the volatility box, clouds which that risk on the russell was a bare minimum of 6.7 points and that’s. What we were looking for on the opposite side, 6.7 points once that first target was hit. Our stop was then moved to break, even which is the sign entry line and we’re going for the second target, which is this great target line. From that same hour, you’ll notice, your price action hits the great target line. So second target here is 17.3 points. So a really nice move in terms of capturing a nice very low risk trade. Considering that, at this point, you’re now only risking unrealized gains zero dollars. In actual risk, so we had the russell hit our t2 so much so that we then breached our other side cyan entry lines. So we breached the sign entry line. Here we had the edge signal confirmation.

We were looking for a retest of that same cyan. Entry line, but that never actually came before the russell continued to make that same move down hitting t1 and t2 one more time, but this time without us in the trade. So as of right now, we’re still on the aggressive volatility box and now comes the third breach inside of the russell and that’s, where price action breaches uh towards the edge of the volatility box. This is again 948. This is really towards the edge of the cutoff period, in terms of where we’d like to stop trading for the day on a friday, but here we do have the edge signal confirmation. This did technically come before the 950 mark, so before 10 am pacific, we had the edge signal confirmation. We had price action, come right back and retest. What would be the cyan entry line and there price action just continued to drift down lower, and this is the one loss in the russell a much more aggressive trade in terms of taking it towards the end of the day towards the cut off period. But in case you did take that that was a risk of four points and we lost that same four points on each of the two contracts, and so that was a two traits inside of the russell and after that, the 10 a.m mark got hit. It wasn’t really looking to risk any more of our unrealized gains. Now next up let’s move on to the s p.

500. Now, inside of the s p 500, the trade opportunity we had same time period 7 to 8 – am pacific price action breached our sign entry line. We were looking for an edge signal confirmation and we did get that. We also had an opportunity to enter at the sign entry line, and inside of this chop was where our entry came. Our stop was outside the volatility box, 7.25 points of risk, and we were looking to make that same amount on the opposite side and 7.25 was the bare minimum looking for that same amount on the opposite side. That did not happen in this move. In fact, we actually have to deal with this bit of heat a little bit deeper, also inside of the clouds chopping around sideways. Until finally, the s p started to get its act together. There we had just the first target, but we fell short of that second target at the great target line, didn’t quite make it there before price action reversed and that second batch of contracts was taken off at break, even so in the s p. 500. Just t1. Just a 7.25 point trade: now we move on next to uh the nasdaq futures here and inside of the nasdaq futures. You should notice. We had only one breach this time in that 8 to 9 a.m. Pacific hour uh there we breached our cyan entry line. We were looking for an edge signal, never actually got that, and the nasdaq here continued to rally and bounce from our models.

So only half of our setup was met there, not the entire setup, so no trade for us, but it’s still especially nice to see that the models work out and it just helps to continue to build more confidence. And then, finally, we had the dow futures market inside of the dow here uh we had price action, breach our sign entry line. We were looking for the edge signal confirmation and that edge signal came right here, giving you a much better opportunity to enter than the sign entry line and really depending on where you had your entry here. I think your trade results may have varied if you did take advantage of the better entry here, we were looking for a bare minimum risk of 50 points from our entry to the outer edge of the clouds, and we did make that same 50 points only. The first target again no t2. Now in case you look to participate in the move up here, waiting for a retest to buy stop through the sign entry line, then your risk here increased to 62 points and that 62 points was not met. So really, if you took advantage of the edge signal with the better entry compared to our sign entry line, you had a nice winner inside of the dow and if you waited instead for the sign entry line and uh really entered on this move back up, then You had a loser inside of the dow, so that varied your results on the dow other than that.

I think the day was still positive, even if you did account for the dow loser all right. So hopefully, that helps to give you an idea of all four of the major index markets, how the volatility varied from the beginning of the week to the end of this week, and what trading on a friday with the volatility box models, look like at least for Today’S activity july, 16, 2021.. All right hope this video was helpful, take care.

What do you think?

Written by freotech

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

Loading…

0

Dow Jones Industrial Average, S&P 500, Stock, Stock market, Nasdaq, Wall Street jumps 120 points to close just shy of 35,000 on earnings optimism

ASX, S&P/ASX 200, Stock market, Stock The Opening Bell || Why is tech and energy rout putting pressure on ASX 200?