Wednesday, July 12, 2017

“Bow-Tie” Trading Strategy | Crude Oil, Emini, Gold, Euro, FDAX


“Do not wait to strike till the iron is hot; but make it hot by striking.”


Crude Oil is bearish with a Spike & Range, telling us to look for selling-opportunities using a ‘2-legged correction’ up in the ‘battle zone’ tomorrow.

S&P is bullish with a Spike & Range, telling us to focus on failures below the range, and keep an eye on the fake-out breakout pullback to new highs.

Gold is bearish with a triangle, and possible ‘bow-tie’ pattern setting-up for tomorrow, telling us to look for selling-opportunities up at resistance levels overhead.

Euro is bearish and trying to re-test yesterday’s low, and a short-term trading-range is telling us to look for bull-traps up in the ‘battle zone’ tomorrow.

FDAX is trading “four legs up” this evening, which tells us to expect profit-taking and a ‘2-legged pullback’ off the highs before we see buyers re-enter the market tomorrow.


Crude Oil Trading Strategy
Crude Oil is bearish with a Spike & Range, telling us to look for selling-opportunities up above the range high using a ‘2-legged correction’, or look for a fake-out breakout pullback pattern as the market tries to make new lows.

One thing to keep an eye on tomorrow is the $45 round number, which may be a sticking point for the bears, and a trading-Range may develop, so focus on traps and buyer-failures above the moving-average is we see the moving-average start to go sideways.

E-Mini S&P Trading Strategy
E-Mini S&P is bullish with a Spike & Range, which tells us to focus on failures below the low of the range using the '2-Try Rule', while avoiding the fake-out breakout to new highs.

The goal for tomorrow is to use the ‘battle zone’ support area to look for buying opportunities, but if the bulls try and push higher, we need to stay patient for the successful breakout-pullback with a target up to the prior month high.

Gold Trading Strategy
Gold is range-bound after the buyers failed to re-test the high, giving the bears a shot to make a run back down to re-test today’s low.

The most important clue is the triangle, which tells us to look for selling-opportunities up above prior swings, and avoid trying to chase the move lower tomorrow.

One thing to keep an eye on tomorrow is a possible ‘bow-tie’ pattern, which may come into play after a fake-out breakout to the downside.

Euro Trading Strategy
Euro is bearish and trying to re-test yesterday’s low, but a flat moving-average and this short-term trading-range tell us to look for selling-opportunities up above the moving-average while avoiding the temptation to sell into the lows.

The goal for tomorrow is to look for traps and buyer-failures up in the ‘battle zone’, or if price keeps pushing lower, to focus on bull-traps to avoid selling too low.

FDAX Trading Strategy
FDAX is trading four-legs-up after a strong bull run to complete the ‘pendulum swing’ we spoke about in last night's newsletter, but now this market is priced a little too high to buy, so we’re waiting patiently for a pullback and a re-test of the high tomorrow.


Keep an eye on the ‘battle zone’ and the prior day high for a deep pullback tomorrow using seller-failures below the moving-average and a target back to the highs.

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