Tuesday, September 4, 2018

Why SIZE Always Matters | Crude Oil, Emini, Nasdaq, Gold & Euro


“Success seems to be connected with action. Successful people keep moving. They make mistakes but don’t quit.” 


Crude Oil is bearish with a Spike & Channel pattern, and I’m looking to combine the high of the channel with a key reversal-line for selling-opportunities…

E-Mini S&P bearish with a wide trading-range, telling me to look for selling-opportunities using buyer-failures with a momentum confirmation for entry…

Nasdaq is bearish with a wide trading-range, telling me to stay patient and use the '2-Try Rule' to sell back down to the lows…

Gold is bearish with a trading-range, telling me to look for selling-opportunities using the '2-Try Rule' up above the range...

Euro is bullish with a 123-Reversal, telling me to keep my eyes open for buying opportunities using the low of a hidden channel tomorrow morning...

We’re back after the Holiday weekend and ready to kick-start the Fall Trading Season with a few strong trends, a couple trading-ranges, and some big opportunities going into Wednesday’s trading session


Crude Oil Day Trading Strategy

Crude Oil is bearish with a Spike & Channel, strong bear run, measured-move, and reversal-line on the chart this evening…

The Spike & Channel is a great pattern, telling me to look for selling-opportunities at the high of the range, and even above the high of the range using buyer-failures, while…

The strong bear run reminds us that any time we see a strong move in one direction we to look for selling-opportunities after a ‘2-legged pullback’ and a re-test of the low, so the market is bearish and all we need is resistance to sell…

One of my favorite resistance levels are reversal-lines, and we have one lined-up near the highs of the channel at 69.68 for selling-opportunities tomorrow morning...

E-Mini S&P Day Trading Strategy

E-Mini S&P is bearish with a trading-range and measured-move on the chart this evening…

The bears took control in the overnight session, got their ‘2-legged pullback’ and a re-test of the low, but the sellers failed to extend the move lower, with the double-bottom signaling the beginning of the trading-range…

The key is the SIZE of this range – it’s very wide…  and wide ranges can be tricky to trade because you can’t be too aggressive – why? – because of the momentum building from these buyers as price rotates back to the high… it’s too strong to just blindly sell…

So my plan for tomorrow is to look for selling-opportunities but only after I see the buyers try twice, and most importantly, I see momentum turning back to the sell-side for a run back down to the low of the range tomorrow morning...

And keep your mind open for a possible reversal, if this momentum is strong enough you will see the buyers punch higher on strength, telling us this market wants to go back and re-test the highs, and we will need a hidden channel for buying opportunities along the way…


E-Mini Nasdaq Day Trading Strategy

E-Mini Nasdaq is bearish with a WIDE trading-range and measured-move on the chart this evening…

The bears took price lower before we saw the double-bottom…

The double-bottom confirms the range, and the move lower confirms the directional bias, but the BIG CLUE is the width of this range… it’s very WIDE.

Wide ranges need to be traded carefully because they allow the momentum to develop as price rotates back and forth, and with the buyers rotating back to the high, the next step is to wait for them to fail, then get momentum running lower for a selling-opportunities back down to the lows…

The wide range can also lead to a breakout, and all we need for that is another strong leg higher for the bulls, and if we get it, look for a hidden channel to buy off the low on the way back up to re-test the high tomorrow morning...


Gold Day Trading Strategy

Gold is bearish with a Spike & Channel, Spike & Range, resistance trend-line, and measured-move on the chart this evening…

The Spike & Channel tells me the bears have the momentum at their back, but…

You can see the sellers struggled to push lower around 10am EST, sending the moving-average flat and running sideways – a good indication of a range, and…

When I see a range with a bear bias like this, I know the best trading opportunities will be using the '2-Try Rule' to sell above the highs, but remember…

A trending market is always looking to complete a measured-move, which is just below the range lows, so if we go lower, focus on bull-traps instead of pullbacks to avoid chasing this move and selling into the market's objective tomorrow morning...

Euro Day Trading Strategy

Euro is bullish with a 123-Reversal, hidden channel, and reversal-line on the chart this evening…

The bears started with control this morning, but after a 123-Reversal the bulls now have the momentum at their back, and any time I see a reversal I always start looking for buying opportunities at support levels…

The best support level to use after a reversal is a hidden channel, and if you look closely you can see the low of the channel lining-up nicely with the reversal-line…

Combine the bullish momentum with a pullback to support levels and we have a great opportunity to take this short-covering rally back to re-test last week’s highs…

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