Thursday, September 7, 2017

Reversal-Line Trading Strategy | Crude Oil, Emini, Nasdaq, Gold & Euro

“Excellence can be obtained if you care more than others think is wise, risk more than others think is safe, dream more than others think is practical, expect more than others think is possible.”

Crude Oil is bullish, but these overlapping “reversal-lines” are telling us that the most reliable buying opportunities will be with deep pullbacks tomorrow.

S&P is bullish ahead of contract rollover, and a triangle pattern on the chart is telling us exactly where to be looking for buying opportunities tomorrow.

Nasdaq is bullish, but multiple levels of resistance overhead are reminding us that the most reliable buying opportunities will likely be down at prior swings tomorrow.

Gold is bullish and trying to complete a measured-move, but big clues in the candlesticks tell us to look for deep pullbacks, rather than chasing this move higher tomorrow.

Euro is bullish, but a short-term trading-range around the 20,000 level is telling us to focus on failures down the ‘battle zone’ with a target going back to last week’s high.

Crude Oil Trading Strategy
Crude Oil is bullish with a target back to yesterday’s high, but the overlapping reversal-lines on this chart, combined with an almost-flat moving-average are telling us to avoid buying high, and focus on traps and seller-failure below the channel low.

To things to keep in mind tomorrow, if things get nutty on Friday, the prior week high is down at 48.20 and the round number of $50 is just a dollar away.

E-Mini S&P Trading Strategy
E-Mini S&P is bullish, but trading sideways in a triangle, telling us to focus on failures below previous swings, or wait for a successful breakout-pullback to new highs and look for traps to fill the GAP left open from the holiday weekend.

Don’t forget about rollover tomorrow.  We’re expecting volume to transfer over to the 12-17 contract, so check the total volume tomorrow before you trade this 09-17 contract.

E-Mini Nasdaq Trading Strategy
E-Mini Nasdaq is bullish and trying fill that “GAP” from the holiday weekend, but the two measured-moves levels overhead are going to keep us from buying too high tomorrow.

The short-term trading-range we see developing into the close might be our best clue, looking for traps and failures below the range, hopefully as far down as the ‘battle zone’ for a move back up to re-test the high.

One thing to remember for tomorrow is rollover.  We’re expecting volume to transfer over to the 12-17 contract, so keep your eyes open.

Gold Trading Strategy
Gold is bullish with a Spike & Wedge with a possible “hidden channel”, but we’re seeing some big wicks at both higher-highs today, which suggests that the bulls have control, but they aren’t willing to get too aggressive with buying the highs.

With that information, we’re watching for deep pullbacks off the high, using the “hidden channel” and the ‘battle zone’ support levels for a target going back up to re-test the high, and hopefully the measured-move.

Euro Trading Strategy
Euro is bullish and trying to re-test last week’s high, but this flat moving-average around the round-number tells us that we are most likely trading inside a short-term Trading-Range with a bull-bias.

The Trading-Range tells us to focus on buying opportunities using the '2-Try Rule' below the range, preferably down in the ‘battle zone’.

Another scenario to watch for tomorrow is a successful rotation up to the channel high, which would signal a shift in bullish momentum, and we can then look to buy the channel low using channel rotation going back to the high.

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  1. Why nasdaq and why no dax. Can someone give me answer. Is it because of trump.

    1., not because of trump. I removed the DAX because of lack of interest, and added the Nasdaq because of higher interest. Hope you enjoy the newsletter, and I look forward to seeing you in the trade room as a student! Have you taken the free trial yet?


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