Tuesday, November 21, 2017

"Overshoot" Trading Strategy | Crude Oil, Emini, Nasdaq, Gold & Euro



“Knowledge has to be improved, challenged, and increased constantly, or it vanishes.” 

Crude Oil is bullish ahead of the weekly inventory report, and I’m anticipating a triangle/range pattern, so I’m looking to “fade” the breakouts tomorrow.

S&P is bullish with a channel "overshoot", telling me to look for another "overshoot" to the opposite side, and I have key support levels to watch for buying opportunities going back up to the high.

Nasdaq is bullish with a Spike & Range, telling me to look for buying opportunities using the '2-Try Rule' down below the range tomorrow morning.

Gold is turning bullish after the sellers failed to re-test yesterday’s low, and my plan is to look for seller-failures on the way up to a measured-move target tomorrow morning.

Euro is range-bound with a bear-bias this evening, telling me to look for selling-opportunities using the '2-Try Rule' above the range high tomorrow.


Crude Oil Day Trading Strategy

Crude Oil is bullish ahead of the weekly inventory report, and with this recent move higher FAILING to re-test today’s high, I’m anticipating a possible triangle/range to develop tomorrow morning.

My plan for a triangle is to look for buying opportunities using seller-failures down near the lows, and selling-opportunities using buyer-failures up above the highs.

It’s also important to remember to get to those trades EARLY tomorrow morning because after 10am EST we get a different market personality ahead of the 10:30am report.

Crude Oil Inventory S/R Levels for Wednesday:
57.58, 57.35, 57.12, 56.89, 56.66, 56.43

E-Mini S&P Day Trading Strategy

E-Mini S&P is bullish with a strong move higher today, overshooting the high of the channel and testing the 2600 round-number.

My plan for tomorrow is to wait for a pullback, deeper the better, hopefully getting an overshoot of the opposite side of the channel, using the prior week high as key support for buying opportunities going back up to re-test the high.


E-Mini Nasdaq Day Trading Strategy

E-Mini Nasdaq is bullish with a Spike & Range after a monster run higher today.

As you’ve heard me say many times before, any time a market moves THIS far, THIS fast, the rest of the market needs to “catch up” with price, and we often see the market turn sideways.

It’s too bullish to sell, and too expensive/high to buy, so my plan is to wait for a pullback, and the range always tells me to focus on failures with the '2-Try Rule'.

Gold Day Trading Strategy

Gold is turning bullish after the sellers tried twice to re-test yesterday’s low, and this rising support trend-line is going to make it much harder for the bears to get anything accomplished tomorrow, giving the bulls a clear opportunity to grab control and run price higher to finish the week.

My plan for tomorrow is to look for seller-failure at the moving-average, followed by the proper entry trigger to get long. 

I also don’t want to buy too high tomorrow, so if price shoots higher, my plan is to look for “traps” to avoid buying into resistance, and will look for a new (steeper) bull channel for a measured-move target.

Euro Day Trading Strategy

Euro is bearish and trading sideways inside a range, within a possible larger range this evening.

The bears have control, so my plan is to look for selling-opportunities using the '2-Try Rule' up above the high of the range, while watching for a successful breakout-pullback to new lows tomorrow.


Don’t forget about the buyers tomorrow either.  After seeing the sellers reject lower prices, we can assume buyers will also be looking for seller-failures below the range low for buying opportunities going back up to both range highs tomorrow.

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