Monday, November 6, 2017

Spike & Channel Trading Strategy | Crude Oil, Emini, Nasdaq, Gold & Euro



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“The person who says something is ‘impossible’ should not interrupt the person who is doing the impossible.”

Crude Oil is bullish with a Spike & Channel, telling me to look for a ‘2-legged pullback’ and buying opportunities with the ‘battle zone’ tomorrow morning.

S&P is bullish with a Spike & Channel, telling me to look for buying opportunities using seller-failures down in the ‘battle zone’ tomorrow morning.

Nasdaq is bullish, but after seeing buyers take profit at the highs, my plan is to wait for more proof of “acceptance” or “rejection”, which tells me whether I’m looking at a Spike & Range or a large bull channel tomorrow morning.

Gold is bullish with a channel “overshoot”, telling me to look for an “overshoot” at the lows, and I’m looking for the '2-Try Rule' to send prices back to the high.

Euro is bearish with a Spike & Channel, telling me to look for selling-opportunities up in the ‘battle zone’ with a target going back down to the prior month low.

We’re back after the time-shift this weekend with some big Spike & Channel patterns to work with on Tuesday, and as always, I have another great newsletter for you tonight with plenty of reliable trading opportunities setting up for Tuesday.


Crude Oil Day Trading Strategy

Crude Oil is bullish with a Spike & Channel pattern, and this recent lack of rotation back to the high tells me that buyers are growing weary of buying so high, and will be looking for buying opportunities at lower prices tomorrow.

The Spike & Channel is a big clue because it tells me that most traders have been “long” since lunchtime this afternoon, and if the market can’t keep making higher-highs we should see a deep pullback into the base of the channel before we see demand from the buyers again.

For that reason, I’m looking for a ‘2-legged pullback’ down into the ‘battle zone’ where I can use seller-failure patterns to buy going back up to re-test the high.

We also have the OPEC World Outlook due out tomorrow morning during lunch in the London Session, which will most likely increase volatility in the early part of the US Session.

E-Mini S&P Day Trading Strategy

E-Mini S&P is bullish with a Spike & Channel, which tells me to look for buying opportunities using seller-failures down in the ‘battle zone’ with a target going up to the Double-Up resistance levels tomorrow morning.

One thing that stands out on this chart is that we’re above the prior week high, which will make for an excellent buying opportunity if we see sellers rejected when they try to move back below it tomorrow morning.


E-Mini Nasdaq Day Trading Strategy

E-Mini Nasdaq is bullish with either a wide bull channel, or a Spike & Range pattern for tomorrow, the big clue being this stalling-out at the highs.

The bulls have control, but they appear to be taking profit at the highs, rather than buying more to new highs.

This tells us to look for a Spike & Range pattern, and the strategy is to buy below the range low using the '2-Try Rule' tomorrow morning.

If the bulls try to push price higher, im looking for the moving-average to clear above the highs and the buyers need to hold a pullback for me to have confidence for buying the rotation back up to the high of the channel and possibly a measured-move tomorrow.
  
Gold Day Trading Strategy

Gold is bullish with a strong, parabolic move to finish today’s session, which gives us an overshoot of the channel just a few ticks below the prior week high.

The bulls clearly have control, but the question at this point is going to be… did they go too far?  Or… are they going to accept this higher price and go sideways.

The overshoot of the channel is most often going to overshoot on the opposite side, bringing us back down into the ‘battle zone’, where we can use the '2-Try Rule' to look for buying opportunities going back up to re-test the high tomorrow.

If price holds these highs, I’m expecting a Spike & Range, which tells me to buy below the range-low using the '2-Try Rule' tomorrow.

So, no matter which situation we get tomorrow, I’m staying patient to look for buying opportunities on a move lower.

Euro Day Trading Strategy

Euro is bearish with a Spike & Channel, which tells me to look for selling-opportunities using buyer-failures up in the ‘battle zone’ tomorrow morning.


One thing to keep in mind for tomorrow is the prior month low, because if you look left, you can see we are inches away from completing a MAJOR objective from October, so we DON’T want to get caught trying to sell into lower-lows until we see proof the sellers want to hold price lower.

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