Do you step away, play, or adjust?
| How to Handle Volatility Daytrading
by Tony Rago | Hey trader, | Monday's session hammered this home from a different angle. The S&P 500 had just printed a 152-handle daily bar, the NQ looked identical, and both were bleeding into the afternoon. | Context forced another adaptation. | I told the room: "A lot of times I like to buy things that are tested from above. On a day like today, we want to stick with the other side of the setups where we're selling from below." | The Golden Setup methodology has two sides. Most people associate it with buying levels tested from above, waiting for price to come down to a key level and bounce. | But on a day where the market has dropped too far, too fast, and every bounce is getting sold, you flip the playbook. You sell levels tested from below using the same framework in the opposite direction. | I still bought the weekly pivot test from above on the NQ that morning. We made 20 handles on it. | But I told the room afterward: "That was clearly the wrong trade. The better trade was shorting the weekly pivot back through and just holding the damn thing." | The market dropped 600 handles from where that short entry was available. | A profitable trade can still be the wrong trade if a far better setup was sitting right in front of you. |
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