Monday, September 11, 2017

“Strength” Trading Strategy | Crude Oil, Emini, Nasdaq, Gold & Euro

“Don't lower your expectations to meet your performance. Raise your level of performance to meet your expectations. Expect the best of yourself, and then do what is necessary to make it a reality.” 

Crude Oil is bullish with a Spike & Range, telling me to look for buying opportunities below the range low, preferably down in the ‘battle zone’ tomorrow.

S&P is bullish with a Spike & Channel, but the lack of ANY pullbacks today tells me that we are going to need a deep pullback off the highs to entice the bulls back into this market tomorrow.

Nasdaq is bullish with a Spike & Range, telling me to look for buying opportunities down in the ‘battle zone’, or use a Spike & Channel rotation if price pushes higher.

Gold is bearish with a Spike & Channel, which tells us to avoid chasing the move lower, and look for selling-opportunities with buyer-failures above in the ‘battle zone’ tomorrow.

Euro is bearish, but an “overshoot” of this channel tells me to wait for PROOF of continuation, or stay patient for rotation back to sell off the highs.

Crude Oil Trading Strategy
Crude Oil is bullish with a Spike & Range pattern, telling us that buyers see value in prices at this level, but are rejecting prices at higher levels.

With that information, I’m looking for buying opportunities at lower prices around support levels waiting below, while avoiding the temptation to chase anything higher.

If price pulls back off the high, I’m watching for traps and failures in the ‘battle zone’.

If price pushes higher, I’m going to avoid chasing the move higher, staying patient for a deep, ‘2-legged pullback’ for a measured-move target tomorrow.

E-Mini S&P Trading Strategy
E-Mini S&P is bullish with a Spike & Channel, trading at the prior month high, and just a few ticks away from a quadruple-up resistance level.

This was a VERY strong move today, one that never pulled-back to touch the moving-average on this chart, which tells us there are likely a lot of buyers who are still waiting for a chance to buy a nice deep pullback.

The big problem now is that this move has gone so far, which means we need to see a relatively deep pullback to attract enough buyers to send it back to the highs again tomorrow.

With that said, my plan is to look for a ‘2-legged pullback’, not just a shallow dip off the high, lower the better, to get those bulls excited about buying the dip tomorrow.

E-Mini Nasdaq Trading Strategy
E-Mini Nasdaq is bullish with four legs higher into a Spike & Range to finish the session just below the 6000.00 round number and the prior month high.

The bulls clearly have control, but the lack of new higher-highs, combined with this flat moving-average tells me that the buyers would rather buy at a much lower price tomorrow.

With that said, if price pulls back off the highs I’m looking for a bear channel and buying opportunities at the lows, preferably with an overshoot of the low.

If price continues to push higher, I will avoid buying into the ‘No Trade Zone’, and look for rotation back down to the low of a potential Spike & Channel.

Gold Trading Strategy
Gold is bearish and trading at the low of a Spike & Channel, as the sellers try to fill a gap still left open from two weeks ago.

The bears have control, but I don’t want to sell the low of this channel, and with the big gap-down to open today’s session I am going to trade this like a Spike & Channel.

Spike & Channels always tell us to avoiding chasing the move lower, so I’m going to focus on failures up above the moving-average, preferably in the ‘battle zone’ tomorrow.

Euro Trading Strategy
Euro is bearish, and “overshooting” the low of a bear channel, which tells me to look for selling-opportunities at the highs of the channel, or wait for PROOF that sellers are interested in developing this short-term channel lower tomorrow.

The goal is to sell high, up in the ‘battle zone’, using the round-number as a price-magnet.

If we don’t get the correction, then I need to look for a bull-trap up above the moving-average because this move lower today never gave the bears any chance to get into the market at a decent price.

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