Trading the Pendulum Swing
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We have a handful of trading-ranges on the charts tonight, which means I’m going to use the ‘pendulum swing’ to find key support and resistance levels to use with my entry patterns tomorrow morning.
Crude Oil is bullish with a strong spike higher, which tells me to look for two specific long set-ups at two different locations tomorrow morning.
E-Mini S&P is bullish and pulling back to the low of the range, which tells me to use the ‘2-Try Rule’ to find buying opportunities.
Nasdaq is bearish and trying to complete the ‘pendulum swing’ target, and once completed I’m looking for a long set-up back into the range.
Gold is bullish, but the high of the range isn’t a very reliable place to start buying, so I’m going to skip the buy and wait to sell into the bulls stops.
Euro is bearish, but we’re a bit too low to sell here, so I’m waiting for the ‘pendulum swing’ to give me a short set-up off the range high tomorrow morning.
Crude Oil is Looking for a Second Leg Higher
Crude Oil has bullish momentum this evening, which tells me to look for buying opportunities at key support levels tomorrow morning.
The trading range has a bull-bias, which tells me to look for long set-ups near the low of the channel.
The support trend-line coming up from below will make for an excellent support level, and I would like to combine that trend-line with a seller-failure pattern.
E-Mini S&P is Bearish, But Look Closely at the Range
E-Mini S&P has an overall bull momentum, which tells me to look for buying opportunities at support levels tomorrow morning.
The trading-range has a bull directional bias, which tells me to look for buying opportunities at the low of the range using the ‘2-Try Rule’.
The bear channel is the most important clue, which tells me to expect another leg lower before I start looking to buy going back into the range.
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“Bad breaks are an opportunity for you to reboot, to reassess, get better, figure out another way through your challenges. The people that look at those challenges and say ‘why do I have those challenges?’ – They’re dangerous people to be around. They will rob you of your enthusiasm and won’t give you any fuel.”
Nasdaq is Trying to Complete the Pendulum Swing
The Nasdaq has bearish momentum, which tells me to look for short set-ups at reliable resistance levels overhead.
The trading-range has a bull-bias to it, which tells me to look for buying opportunities near the lows of the range.
The ‘pendulum swing’ coming off the high of the range tells me precisely where to find major support, and I will use that support to find buying opportunities.
The resistance trend-line is going to help me find the best entry price, using it as resistance on the opposite side.
Gold is Trying to Breakout, But Don’t Hold Your Breath.
Gold has bullish momentum into the close today, which tells me to look for buying opportunities at key support levels tomorrow morning.
The trading-range, however, tells me not to try buying these highs, and wait to buy the lows.
There are two resistance trend-lines on the chart, which provide the key opportunity to sell this market if we get the “nested” 2-Try Failure off the high.
Euro is Too Low to Sell Right Now
The Euro has bearish momentum, which tells me to look for selling-opportunities at resistance levels overhead.
The trading-range is a big clue because it tells us to use the ‘pendulum swing’ to find key resistance above the range so we can sell the highs.
The round number is another big clue because we’re seen the Euro spend a lot of time hanging around them, and with the recent rejection of the 15,000 we assume the bears are looking for a way to get down to 14,000 with a strong break lower tomorrow morning.
