When the ATR (Average True Range) is low, that indicates there’s lower volatility. And when there’s lower volatility, we typically see less intra-day trading opportunities. But when the ATR starts to pick up, we can see more ‘emotion’ in the markets, which leads to greater trading opportunities.
Yesterday the ATR on the S&P 500 e-mini crossed over the 15 mark. And as you can see below, volatile price action correlates with the higher ATR. Even though the average volume is below 2M contracts, our average trades per day has been steadily increasing. And as long as we stay above 1,330 on the ES the bull market will still be in tact. However, if we fall below 1,330 we can see the potential to crash down to the mid 1,250′s.
This morning we saw some great long opportunities in Oil and the ES. We’re 2 for 3 right now, and the momentum looks to be slowing down for lunch…
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