Tuesday, October 17, 2017

‘Pendulum Swing’ Trading Strategy | Crude Oil, Emini, Nasdaq, Gold & Euro



"Only those who dare to fail greatly can ever achieve greatly."

Crude Oil is bullish and trying to re-test yesterday’s high, but a resistance trend-line standing in my way tells me to use a seller-failure on the next pullback for a buying opportunity using a ‘pendulum swing’ target tomorrow.

S&P is bullish and trading above the high of a Trading-Range, telling me to look for a "fake-out-breakout-pullback" pattern going higher, or wait for the ‘pendulum swing’ back to the low of the range and look for seller-failures to buy back up to the high.

Nasdaq is bullish with a Spike & Channel, but we’re seeing some overhead resistance telling me to stay patient for a ‘2-legged pullback’ and a trap-low for the most reliable buying opportunities tomorrow.

Gold is bearish and finished the day trading sideways, so my plan is to use the '2-Try Rule' to look for selling-opportunities using the ‘pendulum swing’ above the highs tomorrow.

Euro is bearish with a Spike & Range pattern, and the recent ‘pendulum swing’ is telling me exactly where to look for selling-opportunities tomorrow.

As you can tell, the ‘pendulum swing’ is a major component in my strategy for tomorrow, giving me both entry and exits clues ahead of Wednesday’s session.


Crude Oil Day Trading Strategy
Crude Oil is bullish and trying to re-test yesterday’s high, but this falling resistance trend-line and Trading-Range will be major obstacles ahead of the weekly inventory report tomorrow morning.

The most recent move higher was very strong, which leads me to believe we will see another (possibly symmetrical) leg going higher.  I just need to get away from this resistance trend-line, so I’m going to look for the sellers to try twice on the pullback before looking for buying opportunities.

As for a target tomorrow, the high of the range at 52.64 is an easy one, but the ‘pendulum swing’ is also in play just below the prior month high.

Crude Oil Inventory S/R Levels for Wednesday
52.82, 52.61, 52.40, 52.19, 51.98, 51.77

E-Mini S&P Day Trading Strategy
E-Mini S&P is bullish and trading above the high of the range, telling me that I need to see a little more strength before I can start looking for the "fake-out-breakout-pullback" pattern tomorrow. 

The ideal situation would be to use the ‘pendulum swing’ to rotate back to the low of the range and then use the '2-Try Rule' to buy with seller-failures back to the high, so my plan is to stay patient.


E-Mini Nasdaq Day Trading Strategy
E-Mini Nasdaq is bullish and trying to finish rotation back up to the high of this Spike & Channel, but it looks like we may have a wedge pattern developing, as we can see this resistance trend-line starting to hold.

The bulls have control, but I don’t want to buy too close to the highs of this channel, so my plan is to look for a ‘2-legged pullback’ down to support levels for buying opportunities using “traps” tomorrow morning.

Gold Day Trading Strategy
Gold is bearish and finished today trading sideways inside a range with a great example of a “market mistake” that can be used for the ‘pendulum swing’ target tomorrow morning.

The bears have control, and the range tells me to look for selling-opportunities using the '2-Try Rule', and the ‘pendulum swing’ gives me a great location to look for the buyers to fail back down into the range tomorrow.

Euro Day Trading Strategy
Euro is bearish with a Spike & Range pattern, which tells me to look for selling-opportunities using the '2-Try Rule' and the ‘pendulum swing’ up above the high of the range tomorrow morning.


My only concern is this rising support trend-line, telling me to make sure I have enough room for at least a small target before holding a runner going back down to the low of the range tomorrow.

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