Markets continue to trade on increased volatility this week, and with sharp moves back and forth on the screen, it’s easy to get suckered into trading reversals…
But wise traders know better than that – they look for situations where a reversal is …
Markets continue to trade on increased volatility this week, and with sharp moves back and forth on the screen, it’s easy to get suckered into trading reversals…
But wise traders know better than that – they look for situations where a reversal is possible, they wait for the rookies to take the bait, and they capitalize on those failed reversals as they “snap back” to their pre-dominant trend…
And we’re likely going to see a handful of those failed reversals tomorrow morning – are you ready for them?
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Crude Oil is bullish with (what appears to be) the start of a short-covering rally off today’s lows, which tells me I need to act quickly if I want to get into a winning position before we re-test today’s high.
Knowing this, I'm looking for a pullback to the low of a new Hidden Channel, but if the market keeps pushing higher, I'm going to get more aggressive and look for a 2-Try Breakout Pattern instead.
E-Mini S&P is bullish and re-testing today’s high, which is major resistance, telling us to sit-on-hands and wait for a better place to buy more on Thursday…
Knowing that, I'm either waiting for a deep pullback to buy into the seller-failure, or I'm waiting for another leg higher to give me confirmation of the next leg for the bulls.
Nasdaq is bullish with a strong run back to re-test the high of day, which tells me I should avoid “chasing” this market at these highs, and wait patiently for a pullback…
And as for the pullback, I have my eyes on the combination of the Spike & Channel and Hidden Channel lows for a highly-reliable level of support.
Gold is bullish into a sideways trading-range, which tells me the market is “balanced” going into Thursday morning…
Knowing this, the best plan will be to wait for the bears to try taking it lower, and buy into their stops using the 2-Try Failure pattern.
And if price keep..
