Monday, October 2, 2017

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



“The struggles we endure today will be the ‘good old days’ we laugh about tomorrow.”


Crude Oil is bearish with a Spike & Range, which tells me to look for selling-opportunities above the range, using the ‘battle zone’ resistance area tomorrow.

S&P is bullish and rotating inside a wide bull channel, and the recent measured-move tells me to look for a ‘2-legged pullback’ and a re-test of the high tomorrow.

Nasdaq is bullish with a Spike & Channel, telling me to look for buying opportunities using “traps” in the ‘battle zone’ tomorrow.

Gold is bearish with a Spike & Range, so my plan is to use the '2-Try Rule' to sell above the highs of the range, with a measured-move target tomorrow.

Euro is bearish with a Spike & Range, which tells me to focus on failures to sell above the range with a target down at the prior month low tomorrow.


Crude Oil Trading Strategy
Crude Oil is bearish after collapsing lower today, settling around the prior week low.

Although the range may not be perfect, the flat moving-average is a clear giveaway that the prior week low was the focus of this move lower, and this range developed around it.

As with all ranges, my goal is to fade the breakouts using the '2-Try Rule' while keeping an eye on a possible breakout that is successful enough to go back into the range we finished in last week.

E-Mini S&P Trading Strategy
E-Mini S&P is bullish with rotation inside a wide, almost flat bull channel and a recent measured-move.

The bull channel is very wide and almost flat, telling me to stay patient for “rotation” and buy near the lows of the channel, while the measured-move tells me to expect a ‘2-legged pullback’ off the highs before buyers go back to re-test the measured-move.


E-Mini Nasdaq Trading Strategy
E-Mini Nasdaq is bullish with a Spike & Channel as the buyers try to recover from the large move lower we saw late-morning this morning.

The move lower is considered the “first try” for the sellers, and with the strength of that move lower, we assume the sellers will try yet again.

My goal for tomorrow is to wait for the sellers’ “second try” and then watch for them to fail so I can buy this back up to the highs.

Gold Trading Strategy
Gold is bearish with a Spike & Range, which tells me to avoid trying to sell this break and wait for either a failure up above the highs, or continued strength going lower before trying to sell more tomorrow.

The ideal situation for tomorrow is to use buyer-failures and the '2-Try Rule' to sell above the range highs, but if price keeps pushing lower, I may need to wait for the measured-move and try selling using a “trap high”.

Buyers may also try to get involved with this tomorrow, watching for the sellers to “Try twice” below the range low, and looking for buying opportunities going back to the prior month low, but with a bear trend, that will be lower reliability, so trade with caution until the trend changes to bullish.

Euro Trading Strategy
Euro is bearish with a Spike & Range, which tells me to look for selling-opportunities using the '2-Try Rule' above the high of the range tomorrow.

If price continues to move lower, the prior month low is major support, so I need to see considerable amount of strength going lower before trying to sell into that area.


One thing to keep an eye on tomorrow is the weekend gap left open from last Friday’s close.  If the bulls can get something going tomorrow they will likely use that for their target.

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