Monday, March 20, 2017

Which Channel Works Best? | SchoolOfTrade Newsletter 03/20/17



“The major value in life is not what you get. The major value in life is what you become. That is why I wish to pay fair price for every value. If I have to pay for it or earn it, that makes something of me. If I get it for free, that makes nothing of me.”


Crude Oil is range-bound with a triangle this evening, telling us to ‘fade’ the edges; sell the high, buy the low, and focus on failures using the '2-Try Rule'.

S&P is bearish and trying to finish off a measured-move tomorrow, but one small channel on the chart is telling us that sellers will likely be waiting for higher prices tomorrow.

Gold is bullish and trying to re-test today’s high, but a short-term wedge on the chart is telling giving us two (2) big clues that we can’t ignore tomorrow.

Euro is bearish and trying to re-test a measured-move tomorrow, but we have two channels on the chart, ONE of which is telling us to watch for a ‘trap high’ early in tomorrow’s session.

FDAX is bearish and trying to re-test last Friday’s low, but we’re seeing three (3) big clues on the chart, telling us to look for higher prices before we sell it lower tomorrow.

We’re back after Quadruple Witching, and we have some interesting charts to cover in tonight’s newsletter, with plenty of reliable trading opportunities setting up for tomorrow.


Crude Oil
Crude Oil is range-bound and trading in the middle of a triangle this evening, telling us this market is balanced, and to focus on fading the edges of the range tomorrow until we see a successful breakout-pullback of this range.  The plan for tomorrow is to buy the low, sell the high, and avoid the middle of this range, focusing on failures using the '2-Try Rule'.

E-Mini S&P
E-Mini S&P is bearish and trying to re-test today’s low, but the sellers overshot the low of this recent bear channel with such conviction that it’s likely the bears got their target in the short-term, and will now be waiting to sell again at higher prices tomorrow.  We’d love to see price get above the 72.50 level to incorporate this hidden channel, and if price runs lower, we will avoid chasing the move lower and look for a ‘trap-high’ to finish off the measured-move.

Gold
Gold is bullish and trying to re-test today’s high, but we’re getting pretty close to that target, and combined with this wedge, we don’t want to ‘buy high’, so the plan is to look for a pullback to 32.5 for the most reliable buying opportunities tomorrow.

Euro
Euro is bearish and trying to re-test the measured-move this evening, but when you combine the first bear channel of the session, with this rising support trend-line, you know that this will be considered ‘selling low’ at this point, so our plan is to look for opportunities to ‘sell high’ up above recent swings overhead tomorrow.

FDAX

FDAX is bearish and trying to re-test yesterday’s low, but the sellers appear to be weary of selling the low of this bear channel, which tells us to look for a ‘trap high’ up at the resistance trend-line overhead or a fake-out breakout pullback below this rising support trend-line tomorrow.

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