Wednesday, February 22, 2017

5 Ways to Trade with Triangles | SchoolOfTrade Newsletter 02/22/17



“Optimism Is The One Quality More Associated With Success And Happiness Than Any Other.”

Crude Oil is bearish, and the trading-range we finished the session with today, combined with the API levels, are giving us all the information we need to find reliable trading opportunities tomorrow.

S&P is bullish, but the ‘No Trade Zone’, combined with a key trend-line are telling us this may not be the most reliable place to buy tomorrow, and to look for a move into the ‘battle zone’.

Gold appears to be bullish at first glance, but there are two big clues on this chart that tell us this may be nothing more than a great selling-opportunity for the bears.

Euro is bullish, and the big wicks on the candlesticks tell us that buyers are looking to buy the dips tomorrow.

FDAX is bullish, but we have a major psychological level on the chart, combined with two trend-lines telling us that we should wait for a pullback before we buy more tomorrow.


Crude Oil
Crude Oil is bearish and trading up off today’s low, which will give the sellers a great opportunity to sell a failure back down to re-test the low.  Market looks quite bullish after this afternoon’s API number was released, and we know that buyers can take control if they can hold the next pullback.

API levels for Thursday:  54.64, 54.26, 53.88, 53.50, 53.12, 52.74

E-Mini S&P
E-Mini S&P is bullish, but trading at the high of a triangle is a horrible place to buy, so our plan is to stay patient and look for buying opportunities using traps and failures below the low of the triangle tomorrow.

Gold
Gold is bearish and trying to re-test today’s low and possibly complete a measured-move tomorrow.  The chart looks bullish at first glance, and we can’t deny this strong move higher, but looking closely and we can see that little ‘trap-high’ above this recent trading-range.  Combine the trap with the fact that the sellers haven’t had the opportunity to ‘sell high’ and we have the opportunity to catch the buyers on the wrong side of this market and send price back to the lows.  How would the buyers prove us wrong?  Simple.  Watch what happens when price gets below the low of this range.  If the buyers enter the market it will be easy to see and we can shift our focus to buying a successful breakout-pullback above the trading-range, but if they fail, we can sell back down the lows.

Euro
Euro is bullish with a spike & channel this evening, which tells us to look for buying opportunities at the low of the channel, as well as traps and failures at the previous swings in the ‘battle zone’ tomorrow.

FDAX

FDAX is bullish and trading with a triangle, right on top of the big round number we spoke about in last night’s newsletter.  The bulls have control, but we don’t want to buy the high, and this triangle tells us to look for buying opportunities using traps and failures below the triangle tomorrow.

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