[Soultrader]

Rangebound and choppy days are the toughest markets to trade in. Unless youre specialty is scalping, you are probably going to get stopped out a million times. Let me explain one simple strategy I use for the dow mini's.

If the opening hour range is less than 30 points, I will trade in the direction of the extension. In other words, play the breakout of the high and low. There isn't much trading opportunity in a choppy market. Best to either stay aside or have enough discpline to limit your trading.

Make sure you give price a few ticks to actually break the high or low. On many occasions price will break the high or low by 2-5 ticks just to reverse. I usually like to wait for a pullback.

Remember, being flat is also part of trading.

Chart example posted below.

[Soultrader]

Chart example of playing the break of the opening hour. Notice the range for the first hour was 27 points indicating a very choppy morning session.

In this chart we have two trading opportunities. The first one occurs in the morning after the breakout of the high. The second occurs in the afternoon selloff when the low is taken out. Both trades were good for over 30 points.