Wednesday, March 8, 2017

My 5% Trading Strategy | SchoolOfTrade Newsletter 03/08/17



“If You Are Working on Something That You Really Care About, You Don’t Have to Be Pushed. The Vision Pulls You.”


Crude Oil had quite the session today, running 5% lower and ending just above $50 a barrel.  A runaway session like this tells us to be looking for a correction or a trading-range tomorrow, and we will be using the moving-average to look for confirmation.

S&P is bearish and trying to finish a move down to last week’s low, but we have a key support trend-line standing in the way, which tells the sellers to watching the ‘battle zone’ tomorrow.

Gold is bearish after a beautiful trap-high, but sitting at the lows of the range tells us to look for a correction or continuation tomorrow, we’re just waiting for proof.

Euro is bearish after a picture-perfect selling-opportunity for the bears today, but now we’re sitting at the range lows and waiting to see if the sellers want to go lower, if we get another round of selling-opportunities up at the highs tomorrow.

FDAX is still trading inside a range, and our strategy of selling the highs and buying the lows will continue tomorrow.


Crude Oil
Crude Oil is bearish after a massive 5% move sent price back to the $50 round number this afternoon.  This market is clearly bearish, but markets that move this far, this fast, will most often trade sideways, or begin correcting higher tomorrow, so our plan is watch the moving-average to see if tomorrow is a pullback or a reversal, and keep an eye on a trading-range so we can sell the highs tomorrow.

E-Mini S&P
E-Mini S&P is bearish after the sellers stayed patient to ‘sell high’ in today’s session.  Now the bears are eyeing last week’s low and a possible triple-down, but they need to push through this rising support trend-line first.  Sellers would love to avoid this trend-line by selling up above in the ‘battle zone’, or they can wait for a successful breakout-pullback below the Double-Down for the next selling-opportunities tomorrow.

Gold
Gold is bearish and trading at the low of a range after a strong move lower in today’s session.  The bears got pretty much everything they asked for today; started with a strong move down to a measured-move, then ‘trapped high’ to allow sellers to avoid selling low, and re-tested the measured-move.  At this point we expect the sellers to be looking for new opportunities up above in the ‘battle zone’ or below the ‘No Trade Zone’ tomorrow, we just need to stay patient and see proof.

Euro
Euro is bearish and trading at the low of a range, just a few ticks above the measured-move.  The sellers had a nice run lower to start today’s session, they took profit on the first test of the measured-move, price corrected higher to attract more sellers, the bears got a beautiful failure set-up above the moving-average and price collapsed back down to the lows.  It doesn’t get much better than this, and now we’re waiting to see if the bears want to go lower with a breakout-pullback below the measured-move or if they give us another round of selling-opportunities up at the high of the range tomorrow.

FDAX

FDAX is round-bound and trading at the low of a triangle this evening, which tells us to keep executing the same strategy that has already been successful this week so far.  Our plan is to keep buying the low using seller-failures, sell the highs using buyer-failures, and avoid the middle of the range until we see a successful breakout-pullback of this range.

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3 comments:

  1. Which moving averages do you use on which time frame? I'm using interactive brokers and have a hard time viewing it the same way you do. I'm thinking about signing up as long as I can familiarize my self with your style so im up to speed. Thanks and keep up the great work.

    ReplyDelete
    Replies
    1. Hi Sean, shoot me an email and ill give you more details :) JJ@SchoolOfTrade.com

      Delete
  2. Hi Sean, shoot me an email and ill give you more details :) JJ@SchoolOfTrade.com

    ReplyDelete

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