Wednesday, August 9, 2017

Spike & Channel Trading Strategy | Crude Oil, Emini, Nasdaq, Gold & Euro



"I don't care how much power, brilliance or energy you have, if you don't harness it and focus it on a specific target, and hold it there you're never going to accomplish as much as your ability warrants."


Crude Oil is range-bound with a strong bull move to finish the session, which tells us to look for one more leg higher before we start fading the edges of the weekly range.

S&P is bullish and trading at multiple levels of resistance, which tells us to look for a ‘2-legged pullback’ off the highs, or PROOF of continuation so we can use this resistance as support for buying opportunities tomorrow.

Nasdaq is bullish with a Spike & Channel, and with the recent completion of the buyers’ objective, we’re now waiting for a pullback or PROOF of continuation tomorrow.

Gold is bullish with a Spike & Channel, telling us to stay patient for seller-failures down in the ‘battle zone’ tomorrow.

Euro is bullish and trying to complete a ‘pendulum swing’ target, while a Spike & Channel tells us to look for traps below the moving-average tomorrow.


Crude Oil Trading Strategy
Crude Oil is range-bound and testing the outer-limits of the weekly range, just ahead of the measured-move and yesterday’s high.

The session started inside a range, but this recent move is quite strong, which tells us that buyers will most likely get another shot at buying the dip before the '2-Try Rule' kicks in and price pushes back into the middle of the range again tomorrow.

One thing to keep in mind for tomorrow is the prior day high, when combined with the top of the weekly range, may become a challenging area to break through for the bulls, so no matter how strong this move LOOKS, we need to see clear proof of bull continuation before we try buying new highs tomorrow.

E-Mini S&P Trading Strategy
E-Mini S&P is bullish with a channel, measured-move, ‘battle zone’, and prior day high on the chart for tomorrow.

The bull channel tells us to avoid buying into the high, while waiting for either rotation back down to the low, or PROOF the buyers are looking for more continuation through the highs (possibly for a Spike & Channel).

This measured-move is a major objective, which tells us to look for buying opportunities after a ‘2-legged pullback’ (preferably into the ‘battle zone’) with a target going back to the high.

And of course, the big runner target for tomorrow is all the way back to yesterday’s high, which is where this whole move lower started yesterday afternoon.

E-Mini Nasdaq Trading Strategy
E-Mini Nasdaq is bullish with a Spike & Channel, rising support trend-line, and a measured-move on the chart for tomorrow.

The Spike & Channel just recently re-test the high, which is considered the buyers’ objective, which tells us to avoid buying until we get a pullback or PROOF that buyers are looking for more.

The rising support trend-line and ‘battle zone’ would be ideal locations for the buyers to “buy the dip”, while the measured-move is a great target, just ahead of the prior week high.

Gold Trading Strategy
Gold is bullish with a Spike & Channel as buyers try to hold price above the prior highs.

The Spike & Channel tells us to avoid chasing this move higher and focus on buying traps and seller-failures below the moving-average, preferably down in the ‘battle zone’ tomorrow.

One thing to keep an eye on tomorrow is the potential for this turn into a range around the prior week and prior month highs.  If we turn sideways, we then focus on failures below the low of the range.

Euro Trading Strategy
Euro is bullish and trying to complete the ‘pendulum swing’ with a Spike & Channel and ‘battle zone’ to work with tomorrow.

The ‘pendulum swing’ started with seller-failure below the low of the range, and that will be a short-term target for the buyers.

The Spike & Channel tells us to avoid chasing this move higher, and wait for traps and seller-failures below the moving-average, hopefully down in the ‘battle zone’ tomorrow.


One thing to keep in mind is that we need to see PROOF of buyers pushing through the ‘pendulum swing’ target because if they can’t hold the pullback we will likely collapse back into the range where all of this started earlier today.

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