Monday, July 24, 2017

“Battle Zone” Trading Strategy | Crude Oil, Emini, Gold, Euro, FDAX



“Courage is not the absence of fear, but rather the judgment that something else is more important than fear.”


Crude Oil is bullish with a Spike & Channel, telling us to look for buying opportunities at the low of the channel, but one BIG resistance level is also telling us to look for a ‘2-legged pullback’ into the ‘battle zone’.

S&P is bearish with a flag pattern, which tells us to look for selling-opportunities up around the highs of the flag, and not to get spooked if we see a sharp correction tomorrow.

Gold is range-bound with a triangle, which tells us to focus on failures using the '2-Try Rule' around the edges of the triangle tomorrow.

Euro is bearish with a Spike & Channel, and the price-action on the chart is giving us big clues telling us to avoid retracements and look for traps tomorrow.

FDAX is bearish and trying to re-test today’s low, but a major support level from last week’s collapse is telling us to stay patient for a larger correction up into the ‘battle zone’ tomorrow.


Crude Oil Trading Strategy
Crude Oil is bullish and trading at the high of a Spike & Channel, which tells us to look for more reliable buying opportunities after a deep pullback off today’s highs.

It’s easy to see we have a lot of resistance levels overhead, the most important being the measured-move, which tells us to look for a ‘2-legged pullback’ off the highs into the ‘battle zone’ for the most reliable buying opportunities tomorrow.

E-Mini S&P Trading Strategy
E-Mini S&P is range-bound with a bear-bias, in what some traders may also call a flag pattern, which tells us to look for selling-opportunities up above the range using the '2-Try Rule' for a target going back down to re-test the low.

One thing that stands out on this chart is the sellers tried twice and failed to re-test last Friday’s low.  This will likely be seen as a major failure for the bears, prompting sellers to take profit and wait for price to correct much higher tomorrow, so don’t get spooked if this price shoots higher in the short-term.

Gold Trading Strategy
Gold is range-bound with a bull-biased triangle after the buyers clearly were interested in “buying the dip” earlier this morning, but rejected higher prices afterwards.

This Trading-Range tells us to keep looking for buying opportunities at support levels near the low of this triangle, using the '2-Try Rule' to focus on failures tomorrow.

One thing to keep an eye on tomorrow is a possible failure at the range low.  Watch for the '2-Try Rule' to hold below the range, and a quick move back to last Friday’s low.

Euro Trading Strategy
Euro is bearish with a Spike & Channel, which tells us to look for selling-opportunities up inside the ‘battle zone’ with a target going down to the prior day low.

One thing to notice today is that we never got any successful retracements after new lower-lows, which tells us that sellers have been rejecting the idea of selling new lows, focusing on selling with traps, and we want to use that information to our advantage tomorrow.

FDAX Trading Strategy
FDAX is bearish and coming off a major Double-Down target from last week’s collapse, which tells us that sellers have control, but we need to stay patient for a larger correction for the most reliable selling-opportunities tomorrow.


One thing to keep an eye on tomorrow is this trend-line coming up off the lows.  That trend-line will likely provide us with the first of many selling-opportunities on the way back down to the re-test today’s low.

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