Video Update: 6 August

Welcome to the video update for Thursday, August the 6th.  Trader Rick covers the euro currency and the ES in the video update so this will be a short update.  In the euro, an ab=cd pattern is shown on the daily chart and illustrates the value of recognizing a possible ab=cd pattern, especially if you are daytrading or swing trading.  Knowing the targets of this pattern will improve your profits and allow you to tighten stops as target levels are approached.  Note how many times price tested the D target of this ab=cd pattern.  4th time was the charm as price finally moved thru resistance, creating a new target at the 1.27 fib.  Look what price has done this week at the 1.27 fib!

Next chart is the 60 min euro currency chart which shows what to do in congestion.  The first thing to do is recognize we are trading sideways.  It is important to avoid 9/30 or 3x trend method setups when price is trading sideways.  The exception would be to dial down to a smaller timeframe and watch for 3x trend setups, but know where support and resistance is!

In the ES, Trader Rick shows a rising wedge pattern which has bearish implications.  See what the first clue is a wedge is in play and see what the targets are.

If by chance there is no video update tomorrow night the next video update will be Wednesday, August the 12th after the markets close.  I will return from vacation for Wednesday’s video update for Thursday’s trading.  Otherwise, look for an update for this Friday’s trading.

Good trading!

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