Market Recap & Educational Takeaway – PTGDavid’s Insights (Friday Session)
Market Recap:
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Early Session: PTGDavid noted the price action aligning with the DTS Briefing projections.
- ES: Price tagged the initial target zone, with a bullish scenario favoring a move above 6125, targeting 6140–6150.
- NQ: Price neared 21174, with a bullish case contingent on sustaining a bid above 22060, aiming for 22174–22196.
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Mid-Session Momentum:
- A balanced opening near the prior high set a decision point for price movement.
- Bulls absorbed selling pressure and continued pushing higher, maintaining a long bias until an open-range break.
- Stop trail adjustments and MATD rhythms were referenced, indicating active trade management.
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Late Session Shift:
- ES broke below the open price range (OPR), signaling a shift toward a bearish stance.
- Caution was advised for a potential “walk-away” session in the afternoon, where reduced liquidity can lead to erratic price moves.
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Announcements:
- President’s Day Closure: The trading room will be closed on Monday, with cash markets shut and futures open until noon.
Educational Takeaway:
The session underscored key principles of professional trading:
- Market Structure Awareness – Recognizing decision points, support/resistance levels, and shifts in bias is essential for navigating intraday price action.
- Adaptability & Risk Management – Adjusting stops and shifting bias based on price action ensures traders manage risk effectively and stay aligned with the market’s direction.
- Understanding Market Randomness – As highlighted in Yumi and DanV’s discussion, even the best strategies encounter losing streaks due to market randomness. A well-tested system accounts for variance, requiring discipline and trust in probability over time.
Maintaining a structured approach to trading—leveraging data, following a well-defined strategy, and managing risk—enhances long-term consistency.
Looking ahead, traders should be mindful of potential volatility post-holiday and adjust strategies accordingly.