Monday, November 27, 2017

Avoid Falling for Traps | Crude Oil, Emini, Nasdaq, Gold & Euro



“Twenty years from now you will be more disappointed by the things that you didn’t do than by the ones you did do. So, throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover.” 

Crude Oil is bearish and trying to re-test today’s low, but we’re sitting at a key support level on the chart, telling me to wait for a retracement and look for selling-opportunities back down to the low.

S&P is bullish with a Spike & Channel pattern, telling me to focus on buying down in the ‘battle zone’ tomorrow morning, staying away from the round-number, and looking for nice deep pullbacks and traps.

Nasdaq is bullish with a Spike & Range pattern, telling me to focus on failures using the '2-Try Rule' down below the range lows tomorrow morning.

Gold is bullish but the moving-average is flat and a recent failure to re-test today’s high is quickly telling me to trade this like a range tomorrow, so my plan is to focus on failures below the range for a target going back up to the high.

Euro is bearish and trying to reverse the holiday bull-rally from last week, and a recent collapse through major support levels tells me to look for a “trap high” up in the ‘battle zone’ tomorrow morning.


Crude Oil Day Trading Strategy

Crude Oil is bearish and trying to re-test today’s low, but we’re trading at an area that I would expect BUYERS to be watching, so I’m going to resist the temptation to chase this move lower and look for more reliable selling-opportunities up at the resistance levels waiting overhead.

If price keeps pushing lower, I don’t want to sell too low, so my plan will shift to look for traps on the way back to 57.55 and beyond.

E-Mini S&P Day Trading Strategy

E-Mini S&P is bullish with a Spike & Channel, but the slope of this channel is telling me that buyers are rejecting the idea of higher prices and will be focused on buying as low as possible tomorrow.

The Spike & Channel pattern is always one of my favorites because it tells us to look for a deep pullback all the way down to the base of the channel, which is where I’m looking for buying opportunities using the '2-Try Rule' tomorrow morning with a target going back up to the round-number and up to the high.


E-Mini Nasdaq Day Trading Strategy

E-Mini Nasdaq is bullish with a Spike & Range pattern, which tells us to avoid the middle, and focus on failures above the highs and below the lows tomorrow.

The bulls have the edge with this range, and the recent pullback is proof that buyers are certainly interested in buying low, just not interested in buying too high, so my focus is avoiding the resistance levels overhead and buying with traps and seller-failures down in the ‘battle zone’ tomorrow morning.

Gold Day Trading Strategy

Gold is bullish and trading sideways with a Spike & Range pattern after the buyers failed to re-test today’s high and the moving-average moving sideways on the chart.

The buyers will likely try twice to retest the high, and with their first attempt already a failure, we know they have one more bullet left in the chamber for tomorrow, and they will probably use it at a lower price, such as the ‘battle zone’ below.

My plan for tomorrow is to use a seller-failure pattern below the low of this triangle/range, staying away from the falling resistance trend-line, and try to use the low of this potential bear channel coming down overhead.

Euro Day Trading Strategy

Euro is bearish after buyers failed to hold this recent pullback into the ‘battle zone’, which is now giving sellers a chance to catch the buyers on the wrong side of the market by using “traps” above prior swings, up in the ‘battle zone’ tomorrow morning.

We can see that strong move higher to finish last week’s holiday-session, but the buyers are clearly rejecting the idea of prices above the prior month high as we watch the price-action collapse right through the usually very reliable ‘battle zone’ from this Spike & Channel.


My plan is to look for selling-opportunities using a bull-trap up in the ‘battle zone’ tomorrow, and there still is a chance that buyers may come to the rescue, but in order for me to buy, I need to see a strong move higher, and then hold a pullback to the moving-average for a target going back up to re-test today’s high.

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