Range Breakouts – Trade It or Fade It?

We’re back at the desk once again, hunting for the most reliable set-ups this week, and with some big news on the schedule tomorrow, combined with trading-ranges on the charts, I’m excited for Wednesday morning because the strategy is rather simple…

But whenever I see sideways ranges, I think about breakouts, and breakouts are tricky for new traders, but not to worry – I have a couple easy rules to tell us to either “Fade it, or Trade It” tomorrow morning – are you ready?

(Sorry for the formatting of this post – we’re making changes to the back-end and we’ll be back to normal ASAP!)

Crude Oil is bearish with the sellers trying to re-test today’s lows, but the big clue is this recent run higher, telling me to anticipate buyers getting caught trying to buy the next pullback…

Knowing this, my plan is to wait for the buyers to get caught trading the breakout below the range, and sell into their stops using a 2try trap pattern…

E-Mini S&P Buyers Waiting to Buy the Dip…

E-Mini S&P is bullish into a trading-range, which tells me to buy low, sell high, and fade the breakouts using failure patterns on Wednesday morning…

Knowing this, I have my eyes on fading the breakouts below the range where the support trend-line and the measured-move intersect – do you see it?

Nasdaq is Bullish, But Watch That Pullback!

Nasdaq is bullish into a range, which tells me to look for buy setups below the range using seller-failure patterns…

But speaking of the sellers, they have a target to complete down at 9150, which I’m waiting for before I fade the breakout going back up into the range again.

Gold Looks Ready for a Rally, But Where’s the Entry?

Gold is bullish and back inside the range from earlier today, telling me to buy with seller-failure patterns below the range tomorrow morning…

But what if the bulls keep this going higher?  When is it safe to trade the breakout?  First I need proof with a 123-Breakout, then I can buy the next pullback…