📈 Trade the Chop

How to take advantage of a choppy market.

Range-bound Market

The stock market over the past few days has been up and down, but hasn’t really gone anywhere.

Why is that?

The biggest reason is that a large percentage of companies are in their blackout period for stock buybacks. What that means is that a growing number of companies cannot execute buybacks for roughly the next month, taking some of the lift out of the market.

To avoid the chop that we are seeing, zoom out and mark off your key levels. Don’t only look at 5 minute and 15 minute charts like you are accustomed to and zoom out to the hourly. It tells a story.

You can see that for the last few days, we have been trading inside of a 2% range on the ES.

Having your levels marked off is crucial because it will provide you with opportunities to go long or short with little risk and it will allow you to watch price action around key areas to see if we break or not.

Trading ranges are difficult and can be frustrating to trade, but by zooming out and identifying key levels, you will be able to take advantage.