This *RANGE STRATEGY* Could DOUBLE Our Profits Tomorrow! transcript

Wow, wow, wow, a huge move down today that finished the session with a sleepy sideways trading range. Now, those two clues, they tell us everything we need to make money tomorrow. Big move and a sideways range. And more importantly, if we play this correctly on Wednesday, we can play both sides of this market and make a fortune together on Wednesday's live stream. So, as always, I'm going to share my entire strategy with entries and exits in tonight's video because I want to make sure we all have a roadmap to follow to make a bunch of money together on tomorrow's live stream.

So, charts are ready. Enough of the intro, right? Let's dive right in. We've had a killer week so far. Let's keep the green going tomorrow morning on Wednesday's trading session. Nasdaq's ready. Oh, the S&P is always ready, isn't it? I've got three clues tonight that tell me where I think the money is made for us on Wednesday's live stream. First clue is right here on the hourly chart. Let's begin first tonight on the Nasdaq.

We'll grab the S&P in the second half of this video. What does the hourly chart tell? Well, first of all, the bears are definitely back in control right now. Separation off that moving average. So, bears certainly have momentum at their back right now. But, how long will this last because we're sitting right at some big time lows right now. And we know that August, a summertime month, loves to make down, up, down, up.

We talk about this all the time on our live stream. The summertime season is notorious for these big moves back and forth. But, for now though, we know one thing's for sure. The bears certainly have control of momentum. That gives me our direction for tomorrow. But, you know what? It's not going to help me time the entries. Let's now drill down to a faster time frame. This is a tick chart. Tick charts make entry timing a whole lot easier.

And by By way, in case you're watching for the first time tonight, that moving average is the 21 EMA. I see two really big clues here on this faster time frame. The first clue is this huge move down. You'll notice we had one leg, two leg, and three legs lower. A huge move down. Now, what does a big move like that tell me? It tells me that all of that momentum, we expect a deep pullback, a retest of that low, and usually a nice big bounce off of that low.

So, one clue is the size of this move. Expect a nice deep pullback. Bears will come in, short back to the low, and I would imagine buyers are going to buy that retest. Then we have clue number two. One of my favorite clues right now. That range right in the middle. Now, ranges, they like to rotate back and forth with symmetry. We go up, we go down, up, down. We use things like triangles or megaphones. We use things like symmetry or what I call pendulum swings back and forth.

The bottom line is, with the bears back in control right now, I can sell above the highs, and because we have that huge move down, I love the idea of buying off the lows. Now, one of my favorite trades for tomorrow is buying off that low. I want to talk about that in the second half of this video. So, later on tonight, we'll talk about three, maybe four different trades I'm watching as we go lower. But first things first, though.

Let's start first right now with the move going higher. We know that range, and we know that big move down. We're trying to get this price to pop up and back down again. How would I short something like that? Well, first of all, the money is made around the edges of this range, right? So, I want to get above one of these edges and on our live stream, I like to time entries using price action gaps. I'll walk you this more tomorrow morning on the live stream, but the bottom line is I like to look for entries with gaps in price action.

Buyers once, buyers twice, getting in off that price action gap. Now, keep in mind, during that rotation, I like to add to my position by selling above prior highs. So, again, one way I want to short this thing for tomorrow is get up above these highs, ideally up around that gap up there, wait for buyers to get trapped in, and look for ways to short a bull trap using a simple, what I call a trap and gap scalping trade going lower.

I'll walk that tomorrow morning on our live stream. We know the market wants to rotate going lower, right? We know how rotations work. So, I'm shorting gaps, I'm shorting above prior highs, and my target is where? It's symmetrical on the other side of that trading range. Now, a heads-up on this. We oftentimes see in these big moves like this, we oftentimes see a really strong pop up, but we don't get a bear trap up here.

Every once in a while, we get so many bears up there, it just gets whacked right back down again. If we do see a V top off the high, draw trend line off the lows, bring that trend line up around the high, see that? Now, most important thing is get short above a swing. I want that first test is the best test off the high of that channel, and again, I'm looking for that rotation target equal distance on the other side of that trading range.

Now, here's a question for you. How would we know at what point, if we break out, that we have one big reversal? Because, as I said earlier, the month of August is notorious for these big moves back and forth. Would anybody be surprised if we V bottomed here and just ran right back up again? Who knows, right? Trump might say something about Iran. We might see good news from inflation tomorrow. It's easy to think that might be possible, especially since we're sitting right at this big low right now.

So, how would I know when to stop looking for a short and then look for a long trade? Good question. It's all about separation. Look at price pulling back above the moving average. What do you see? We don't get any separation. So, if I was to pop up, begin to separate off that moving average, and here's the trick, guys, pay attention. If it slowly grinds higher, that is the giveaway. If it separates and then slowly grinds higher, like today, right?

Today's move down, what happened? It slowly grinds down. Remember, grinders are very tough to stop. If I pop up and we start slowly grinding, now we know we're probably not going to make our way back to that low again. I'm going to use that range now for a two-legged pullback. Now, on our live stream, we call these one-two-three moves. Think about a Fibonacci extension. Think about 138.2. I call these one-two-three moves.

They are a two-legged pullback, and my goal on this will be to get back around the top of that range. I don't like to pick tops and bottoms. I like to wait for bear traps here and then get in on a price action gap. I'll go into a lot more detail on timing that entry on tomorrow's live stream. That reminds me, too. Remember, guys, this strategy is very simple right now, but it could easily change at some point tomorrow morning between now and the opening bell.

So, come join us on the live stream because I'll be sharing screens, calling trades, and most importantly, I'll be adjusting and adapting to all the new information we get on tomorrow morning session. So, guys, if you're not making the money you want in your trading right now, get on my live stream each morning cuz I'll show you how to find the entries and time the winners, and most importantly, avoid those losses and avoid all those mental mistakes.

That way, you can start making money right along with us. What I'll do is, guys, I'll put a link down bottom for the description of tonight's video. I'll put a pop-up there for you, upper right-hand corner. Do me a favor, please. Pause the video, hit that link that popped up there for tomorrow's trading session because, guys, trading is so much easier and a lot more fun we do it together on our live stream. You'll know where the best entries are, how to hold those runners longer, and you'll finally get the confidence and the consistency you've been missing in your trading.

Guys, my live stream is the missing piece you've been looking for. So, again, hit that link below in the description below or grab that pop-up there, upper right-hand corner, and I'll see you tomorrow morning. Don't miss the pre-market prep, 8:30 Eastern time, on tomorrow's live stream. In the meantime, though, let's keep prepping now for tomorrow. We talked about if price goes higher, how to short this back down again, how to add to our winner, and where to look for our profit targets.

We also talked about earlier here, too, if we do rip higher and begin to slowly grind away from that 21 EMA, that tells me one, two, three move and buy that breakout pullback. But now, what if we keep going lower? I said earlier, it's a big move down. Can I buy down here? And hold on though, at what point would I sell down here? What has to happen down here for me to be looking to sell this far down? That's a great question.

Let's grab that, answer that question now over on the S&P. Boy, what a chart we have right now on the 60-minute chart of the S&P. Again, it's obvious right now the bears are in control. I've got separation off that 21 EMA. Look at those big legs lower. Now, what does that show you right there? That's a measured move lower. Look at the range up here. Look at the size of that symmetry. The amount above, the amount below.

This is a very convincing area of support. And again, we know that August is notorious, right? For big move up, down, up, down, and back up again. Could easily happen. Also, keep in mind too, right below us is that prior all-time high, that 7693 half. If I grab a daily chart right now, you really get a much better look at it on a daily chart, right? There is the prior high right there. I mean, come on. This has to be one of the almost obvious levels of support right now, cuz again, it's a range on the daily, it's a breakout and a pullback breakout pullback zone on that daily.

So, we do want to be aware that yes, we are at some pretty killer areas of support, but it does definitely look like these bears, they might be hunting for that half level. Let's keep that number on our mind right now as we drill down to our faster time frame. Now, on the tick chart, a 7,000 tick chart, same 21 EMA. Again, two big clues right now. Huge move going lower. Anytime we see a big move down like this, it's a pop up, it's a short, it's a retest, and a bounce, right?

Pretty easy there. But again, that trading range, right? That trading range, that range right there may lead now to range rotation, right? Range rotation. Find that triangle, find that symmetry, right? Back and forth, same thing as we go. Now, we mentioned earlier going higher on the Nasdaq, pretty easy, right? Pop it up, get above some of these swings, and short those bull traps back down again. Now, as we go lower here, how do we buy it as we go lower, and when would I flip this and start selling it down here?

Very good question. Oh, and by the way, there's that 7693 half level right down below us. So, we know we're right on that area right now. As we go lower here, my goal now is to buy this back up again. But remember, we're overall bearish, okay? That's one big difference than being a seller off the high. I can be relatively aggressive right now being a short seller above the high. As I go lower though, I am now fighting against momentum.

Very big difference here. So, the entry on this is a crown reversal pattern. It's bears trying once, it's bears trying twice, and I'm trying to get in underneath a low right now. Now, if we're lucky, we'll get that crown reversal pattern, we'll start going higher here, and then we can jump in again below other lows. Remember, whenever I'm trading rotation, I'm always getting in under lows during the rotation, or I'm going against momentum, right?

Against momentum, I'm buying below lows. I'm buying there below lows, right? So, it'll be a commercial pattern, it'll be an add-on, and again, we know now where that target now wants to go. That is our big paycheck. Also, too, we often times see that strong run down, and it just gets whoop, right back up again, because again, we're running right into all of that major support down there. If all we get is a V bottom off that low, if I don't get any way to buy the bear trap down there, the next best thing now is is to go find my V bottom play.

The V bottom play is simple. Draw a trend line off the highs. Bring that trend line down off those lows, and most important thing is, remember, during range rotation, we're getting in below swings. I want that first test is the best test off that low, and if we're lucky on this, we'll get the buy off that low, and then during that rotation, we can add more down below prior swings. As you can see, when I'm trying to trade that move off that low, I'm really focused on getting in below swings, getting in below swings.

That way, I'm not getting bull trapped trying to chase after going higher, right? It's It is easier said than done, but I want to stay patient, buy the low, buy the low, and keep on waiting for that rotation going higher. Now, be aware of this. We see this all the time in an overall bull market. Like look at look at look at the daily chart right now, right? The daily chart right now, it's we're not a bear market right now, right?

We're an overall bull market, we're simply trying to pull back right now, right? Okay. So, knowing that is a scenario, we often times see these situations where we get that strong run down, we pop up, and we retest that low, all right? We love trades like these on our live stream. I call this a 1 2 3 move. Again, think about a measured move that goes a bit too far. 1.38, right? 1.618. Again, we'll do this together tomorrow morning on the live stream.

But, be aware of that, right? If we see a strong run down overnight, we may pop up quickly and then sometime tomorrow morning, like, you know, 9:15, 9:30, 9:45, we get that retest of that low. Remember, big move down, pop it up, buy the retest and the bounce, right? The retest is almost always going to be that 1 2 3 move we love so much on the live stream, right? 1 2 3 Fibonacci extension. We're not going to blindly buy it, right?

We don't blindly buy it. I love to use those bear traps and the gaps, right? The bear traps and the gaps, the what I call a trap and a gap, right? A trap and gap. We'll talk more about this tomorrow morning on the live stream. Now, final question for us right now. What would cause me to try to short down here? If we go sideways into a range here, in all reality, we are grinding down right now. We know that grinding price action is very tough to stop.

So, for example, if I find myself grinding down right now and then tomorrow morning I'm chopping around here inside that trading range, what do we do again? First of all, we find the swings, right? Because the money is made above those swings. We get above the swings, look for bull traps off the high, we sell those bull traps back to those lows. And again, as it rotates lower, we're adding more off of that high, right?

Bull trap, add on. Target is back to retest the low and that pendulum swing, right? This is when we can keep selling even though we're very low right now. If I see a range down there, that range wants to pop up and it wants to rotate going lower. Same thing applies here if we go into a range and go lower first, right? Happens all the time. If we're trading range down here, we go lower first. Now again, pretty bearish overall.

So my goal will be to buy what? To buy below swings. That is a protection technique that will keep me out of most losses on these very bearish but overall bullish environments, right? Get in below that low, then we know where that pendulum will be and that will tell us now where our profit target is, where we can now look for a bull trap to short off the high or or don't forget, we know this area down here is very strong support down here.

So no one should be surprised here if we pop up off that low, we start separating off that moving average and remember, it's that slow grind, right? It's that slow grind. Promise me guys, do not try to fight a slow grinding market like that, especially if it traps below those lows first, right? That could be a blow off bottom. That could be the very bottom of the move here and everything now is upside the rest of the week there.

Again, pops, separates and slowly grinds. Now we do is, we use that trading range now for a breakout pullback. And most breakout pullbacks are going to be a two-legged pullback. We'll do it together tomorrow morning on the live stream, but buy that breakout pullback, target is right back up to retest the high. All right, guys? So, a relatively simple game plan for tomorrow, but remember, guys, this plan will likely change at some point tomorrow.

We get new information almost every evening right now out of the Middle East, so this could definitely change for Wednesday's live stream. So, again, come join us tomorrow morning on the live stream. You are wasting your time right now, guys, doing this all on your own each morning. I'm giving you the ultimate shortcut. So, again, grab that link below in the description of tonight's video, or grab that pop up there, upper right-hand corner, and I'll see you tomorrow morning at the opening bell.

We have some money to make together on tomorrow's morning's live stream. In the meantime, hope you learned a bunch in tonight's video. Hope I'll see you sometime soon on the morning live stream. Be well out there. Be nice to each other, will you? And you better be here next time, folks. Adios, amigos. Bye for now.