Tuesday, February 21, 2017

3 Ways to Trade with Channels | SchoolOfTrade Newsletter 02/21/17



“Your Life Only Gets Better When You Get Better.”

Crude Oil is bearish, but two major support levels on the chart tell us that we’re running out of space to sell low, and our best option is to wait for a trap.

E-Mini S&P is bullish, and a new sideways range on the chart is telling us exactly where to find the best buying opportunities tomorrow.

Gold is bullish, but one significant clue on this chart tells us to stay patient for a pullback because there are likely buyers waiting below.

Euro is bearish, but we have a big clue telling us this market may be exhausted, and to wait for a pop higher so we can sell it back down again tomorrow.

FDAX is bullish, and there’s a big psychological resistance level overhead telling us where this market wants to go, and where the best buying opportunities will be tomorrow.


Crude Oil
Crude Oil is bearish and trying to finish off a measured-move this evening as it rotates down to the low of a bear channel.  The sellers have control, but we’re running out of space to allow us to keep ‘selling high’.  We don’t want to sell into the measured-move or the low of the channel, our best option is to wait for traps and failures up above the resistance levels waiting overhead as this market tries to take back the move that happened over the holiday.

E-Mini S&P
E-Mini S&P is bullish and trading in the middle of a short-term range after the buyers got their triple-up target just before the closing-bell this afternoon.  The buyers have control, but they don’t want to buy into the high of this range, so the most reliable buying opportunities will be in the ‘battle zone’ below the low of the range or after a breakout-pullback above the triple-up on the way to a measured-move tomorrow.

Gold
Gold is bullish with a spike & channel after the bears got their triple measured-move and clearly took their profit and reversed direction.  With the bulls in control, this sharp move higher most likely didn’t give a lot of buyers the opportunity to buy any pullbacks, so we assume the levels of support below us will be excellent opportunities for buyers to ‘buy low’ for a target up to the Double-Up and measured-move overhead.

Euro
Euro is bearish and trading within a narrow range, and just a few points from re-testing last week’s low.  The sellers got their quadruple-down target, which is usually going to be an exhaustive area in a trend, which tells us that sellers will be looking to ‘sell high’ up above the highs of the range, and will avoid selling below the low of the range unless we can see some strength.

FDAX

FDAX is bullish with a spike & channel this evening, and with the 12,000 round number overhead, we can safely assume that the bulls are just shy of reaching their objective tomorrow.  With that said, we know the most reliable buying opportunities will be at an area of support, with enough room for everyone to grab a nice target, so the plan is to wait for a pullback off these highs and look for the move going back up again.  Keep an eye on the swings waiting below and watch for seller-failures and traps for the move back to the highs again tomorrow.

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