Range Breakout Strategy

Markets are range-bound and “balanced” ahead of major news later in the week, which means our plan is rather simple…

Buy the low, sell the high, avoid the middle, and fade the breakouts using failure patterns – are you ready?

Crude Oil is Running Lower, But Will It Last?

Crude Oil is range-bound with a bull-bias, which tells me to look for buy set-ups using seller-failures down below the low of the trading-range.

And when it comes to trading the breakout, remember to wait for one of my favorite breakout patterns, which we’ll discuss in tonight’s video.

E-Mini S&P is Range-Bound, Fade the Breakouts!

E-Mini S&P is balanced with a trading-range and a bull-bias, telling me to stay patient for buy set-ups below the range using the seller-failure set-up.

Knowing this, if the buyers try running it higher, I can still sell off the high, but I need to see the “nested” variation of a buyer-failure set-up.

Nasdaq is Bullish into a Range (or is that a Flag?)

Nasdaq is bullish into a trading-range, which tells me to look for buy set-ups using seller-failures below the range low.

And I’m not ignoring those bullish clues in the price-action below the range, telling me that this might not even be a range at all, instead it might be a flag pattern…

But no matter what the price-action says, I still need to see PROOF of the bullish breakout before I can be confident enough to buy it as it attempts to finish the measured-move target tomorrow morning.   

Gold is Bearish, But the “Pendulum Swing” is Key

Gold is bearish into a trading-range, which tells me to look for sell set-ups using the buyer-failure pattern above the highs of the range tomorrow morning.

And don’t forget that recent strong run higher, which will most likely try to complete the ‘pendulum swing’ before we get a solid sell signal going lower.

Euro is Balanced Around the “Round Number”

Euro is bearish into a sideways trading-range, telling me to fade the breakouts, selling high, buying low, and avoiding the middle.

And to accomplish this, my focus is on failure set-ups until we see a successful breakout of the range tomorrow morning.

“Success is not the key to happiness. Happiness is the key to success. If you love what you are doing, you will be successful.”