Trading Room RECAP 8.20.25

🔗 Key Links


🧭 Morning Session – Cycle Day 3, Reclaim Mission

  • Opening Framework: CD3 with the objective to reclaim the lost Cycle Day 1 low (6456).

  • Overnight Trade: Lower target zone was already achieved pre-market.

  • Bear Bias Early: Price action below 6430 pointed to downside targets in the 6415–6405 zone (ES) and 23370–23315 (NQ).

  • The “default sandbox was set around 6420–6430, providing short-side alignment in the first push lower.


📉 Mid-Morning – Pressure Test & Key Levels

  • Last Week’s Low (6387) drew heavy order flow and sparked debate on whether it would hold.

  • Traders noted the importance of 6370 (ES) / 6350 (SPX) as critical battleground levels.

  • Discussion on habit-building & discipline emphasized trading with alignment and avoiding bottom-chasing.


✈️ OODA Loop Application – Tactical Mindset

David introduced the OODA Loop (Observe, Orient, Decide, Act) – a military combat framework adapted for trading:

  • Observe: Market state (trend, volatility, news).

  • Orient: Contextualize observations with broader patterns.

  • Decide: Formulate the trade plan.

  • Act: Execute with feedback into the loop.
    The key takeaway: speed of iteration beats hesitation, much like in air-to-air combat.


⚡ Precision Reversal – Gold Mine Opportunity

  • At Cycle Projected Range Low (6369.50), ES staged a fantastic precision reversal rally.

  • Traders cited RSPR 2B triggers giving clean longs with zero heat.

  • This reversal opened the door to 0DTE call opportunities, dubbed a “Gold Mine” setup.

  • David summed it up with: “Precision Laser Trading”.


🍴 Midday Consolidation & Afternoon Action

  • Price consolidated around VWAP zone heading into midday.

  • By 2pm, a “Shake n Bake” sell-side flush emerged, catching traders after the morning squeeze.

  • Liquidity themes continued with a $2.25B MOC buy imbalance into the close.


🎯 Key Takeaways

  • Cycle Day 3 objective achieved: textbook precision reversal at projected range low.

  • OODA Loop framework offered a sharp tactical edge in adapting intraday.

  • Traders who aligned with structure avoided early traps and capitalized on reversal strength.

  • Day closed with another lesson in discipline + precision = repeatable edge.

Comments are closed.