Chop, Chop for Day Traders

Chop, Chop for Day Traders

So far, we have an inside day with traders testing both ends of the overnight range. The predicted chop is ruling the day. Traders initially took the market above the overnight high, but the resistance just above 4500 was too much, and the market turned back down to test the overnight low, which is holding so far.

This behavior leaves a triangle on the daily chart right in what would be a “4” position in Elliott Wave terms. Triangles at “4” waves are textbook Elliott, assuming we can break to the upside.

As I often note, Elliott Wave always looks good in 20/20 hindsight. I have not found it helpful in predicting the future. For now, note the observation in your narrative.

A.F. Thornton

AF Thornton

Website: https://tradingarchimedes.com

A.F. "Arthur" Thornton is an expert in logic, risk/reward quantification, market fractals, pattern recognition and asset class behavioral analysis with 34 years devoted to developing algorithmic and quantitative trading systems. In addition to trading his own capital, Mr. Thornton designs custom algorithmic and quantitative trading systems for a small and exclusive group of exceptionally qualified traders.

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