Trading the 123-Reversal Pattern

“Risks may make you win, or they will make you learn. Either of the benefits is worth daring for.”

Crude Oil is bearish and trading at the high of the range, telling me to wait for the buyers to try twice before selling back down to the range low tomorrow morning.

E-Mini S&P is bullish with a short-covering rally, and with the buyers trying to go back and re-test Wednesday’s high, my plan is to look for bear-traps at support levels on the way higher.

Nasdaq is bullish with a 123-Reversal which tells me exactly where I can find the most reliable buying opportunities tomorrow morning.

Gold is bearish and trying to complete the ‘pendulum swing’ target, and I have my eye on bull-traps just above the range for selling-opportunities.

Euro is bullish and trying to break free of the weekly trading-range with a strong push higher, but since this is a range, I’m looking for these bulls to fail so I can get short back into the range tomorrow morning.

We’re back after a day off on Wednesday with some excellent opportunities setting-up for Non-Farm Payroll Friday…

We have some major trend reversals, a couple trading-ranges, and as always, a solid plan of attack for tomorrow morning’s session.

Crude Oil Day Trading Strategy

Crude Oil is bearish with a trading-range, ‘pendulum swing’, support trend-line, and round number on the chart this evening.

The trading-range has a bear-bias, telling me to sell above the highs using the 2-Try Failure pattern.

The ‘pendulum swing’, combined with the range-expansion up around 52.15 will make for an excellent resistance area.

But the rising support trend-line coming up off the lows reminds me to make sure I clear below it and use it was resistance for the most reliable selling-opportunities.

E-Mini S&P Day Trading Strategy

E-Mini S&P is bullish with a 123-Reversal, strong bull run, hidden channel, reversal-line, and measured-move on the chart tonight.

The strong bull run feels like a short-covering rally, reminding me that whenever we have a market closing (like we did yesterday) the following day often goes back to where it started – so I need to be looking for buying opportunities on the way up to 2720.

The 123-Reversal is the big clue, telling me to look for buying opportunities off the low of the channel.

The measured-move reminds me that we’re a little too high to buy and I should wait for a deep pullback to avoid buying into resistance.

The reversal-line, combined with the low of the channel will make for excellent support to look for a 2-Try seller-failure pattern to buy tomorrow morning.

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E-Mini Nasdaq Day Trading Strategy

E-Mini Nasdaq is bullish with a 123-Reversal, hidden channel and measured-move on the chart this evening.

The bullish 123-Reversal tells me NOT to chase this short-covering rally, but wait for a pullback to the low of the hidden channel.

The measured-move reminds me of the urgency in getting long before we reach the objective – because if we do, then I need to wait for the deep pullback so I’m not buying into resistance.

Gold Day Trading Strategy

Gold is bearish with a trading-range and ‘pendulum swing’ on the chart.

The trading-range tells me to buy the low and sell the high using the 2-Try Failure pattern.

The ‘pendulum swing’ tells me to look for a move down to the opposite side of the range.

Combine both of these clues and I can confidently look for shorts using the 2-Try buyer-failure pattern above the range high, but I need to stay patient until the bears complete the ‘pendulum swing’ before trying to buy the low.

Euro Day Trading Strategy

Euro is bullish with a trading-range and strong bull run on the chart tonight.

The trading-range tells me to fade the breakouts using the 2-Try Failure pattern.

The strong move higher, however, tells me the buyers are going to try twice to re-test the high, so I need to stay patient and wait for that 2-Try Failure.