Why-ES-WorksOne of the most overlooked price action tools in trading is the prior days price action.

It is the most relevant and recent movements in the market and provides the most pertinent insights to what price action is trying to do next.

Let’s start with some simple concepts…first!  The ES Daily range or Average True Range is a great gauge of how much the markets might move on any given trading day.

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Note the lower section (i.e., yellow #1) identifies the ATR – average true range and you can see that has slowly declined from early 2016 where it was as high as 35+ and now hovering around 10 to 15 points.

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