Wednesday, October 11, 2017

3 Steps to Trading with a Triangle | Crude Oil, Emini, Nasdaq, Gold & Euro

"Remember where you have been and know where you are going. Life is not a race, but a journey to be savored each step of the way."

Crude Oil is bullish with a triangle pattern, telling me to look for seller-failures using the '2-Try Rule' down in the ‘battle zone’ tomorrow ahead of the weekly inventory report.

S&P is bullish with a strong move back to the highs today, which tells me to look for a ‘2-legged pullback’ and another leg higher before the sellers try and fade this move back down into the range tomorrow.

Nasdaq is bullish and just about to hit the target from last night's newsletter, so rather than trying to buy into resistance, my plan is to look for a ‘2-legged pullback’ and another move back up again tomorrow.

Gold is bullish and just inches away from hitting the target we discussed in last night's newsletter, so we’re too close to buy more now, waiting for “bear traps” to keep buying more tomorrow.

Euro is bullish with a wide channel, which tells me the most reliable buying opportunities will be after a ‘2-legged pullback’ down to the lows tomorrow.

Crude Oil Day Trading Strategy
Crude Oil is bullish and trading sideways inside a triangle, which is traded like a range.

Any time we see a triangle on the chart, the plan is to buy the low, sell the high, avoid the middle, and focus on failures tomorrow morning.

My plan is to look for seller-failures down below the range low, following with buyer-failures above the range high, while avoiding trades around the prior day high.

Don’t forget, the weekly inventory report is scheduled for 11am EST tomorrow morning, so watch the clock, and those support and resistance levels!

Crude Oil API S/R Levels for Thursday:
52.00, 51.68, 51.36, 51.04, 50.72, 50.40

E-Mini S&P Day Trading Strategy
E-Mini S&P is bullish and trading just above the high of the weekly trading range, telling us to use the '2-Try Rule' to look for both buying and selling opportunities tomorrow.

The bulls had a nice strong run higher today, and that strength going higher tells me that buyers will most likely give it one more try on the next ‘2-legged pullback’.

My plan is to wait for that ‘2-legged pullback’ and look for buying opportunities going back up to re-test the prior day high.  Im watching a pullback to the triangle pattern that developed earlier this morning.

At the same time, we have to remember that this is the high of the weekly range, which means sellers are going to be watching for the '2-Try Rule' to sell back down to the lows.

My goal is to find buying opportunities on the way up to the 2nd try, and then watch to see how the price-action reacts from there.  Selling back into the range if they fail, or looking for continuation up to the measured-move if they can hold the breakout.

E-Mini Nasdaq Day Trading Strategy
E-Mini Nasdaq is bullish with a Spike & Channel pattern, just inches below the target from last night's newsletter.

The bulls have control, but we’re too high to keep buying because this is where we should be taking profit on the trades from earlier today.

My goal for tomorrow is to look for buying opportunities using “traps” until we re-test yesterday’s high, then start looking for a ‘2-legged pullback’ and a re-test of the measured-move later in the session tomorrow.

Gold Day Trading Strategy
Gold is bullish and trying to finish the move back up to re-test yesterday’s high after pulling-back into the ‘battle zone’ we identified in last night's newsletter.

The buyers have control, but we’re a little too close to the target to be looking for buying opportunities here because this is where we expect to see buyers taking profit, and sellers trying to sell back down again.

My plan for tomorrow is to look for “bear-traps” on the way up to the high, and if we can push through that resistance, I will be looking for a "fake-out-breakout-pullback" pattern for continuation up to the 1300 round number and measured-move targets waiting overhead.

If price keeps moving higher, focus on traps, and keep an eye out for a Spike & Range, such as a bullish triangle pattern tomorrow.

Euro Day Trading Strategy
Euro is bullish with a wide bull channel and short-term Spike & Channel as it tries to push its way through the highs from last week’s Trading-Range.

The bulls have control, but trading at the high of this channel tells me there will be more reliable buying opportunities down at the lows.

My plan for tomorrow is to look for a ‘2-legged pullback’ back down into the ‘battle zone’ where I can look for the specific entry trigger to get in long with a target back up to re-test the high.

If price keeps pushing higher, im watching for the possible “triangle” into a range-bound market while looking for “Traps” to keep buying low.

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