Trading the Spike & Channel

We had some STRONG moves in today’s session, which means we have a handful of Spike & Channel, Spike & Ranges, and some really nice set-ups waiting for Thursday’s session…

Crude Oil is bullish but finished today’s session at key resistance, which tells me to look for a pullback, and I have my eyes on a combination of three support levels for Thursday’s session.

E-Mini S&P is bullish, but a WIDE Spike & Channel on the chart tells me we need to skip the next pullback and wait for the sellers to exhaust before we try buying back up to the high.

Nasdaq is bullish with some ugly price-action tonight, but with a relatively obvious chart pattern, we know exactly where the most reliable opportunities will be tomorrow morning.

Gold is bullish and hunting for the top of this massive range we’ve stalking (I mean trading), but as we get higher, we start shifting our focus from one type of buy set-ups to more reliable one.

Euro is bullish with a Spike & Channel pattern, but I think the short-term trading-range is what’s most important for finding the best pullback entry tomorrow morning.

Crude Oil Appears to be Over-Extended This Evening…

Crude Oil is bullish but appears to be over-extended up at this measured-move.

The bulls have control and they finished the session at major resistance and into a narrow trading-range, suggesting that traders are waiting for lower prices to buy more tomorrow morning.

My plan is to use support levels, such as the trend-line and 51.50 reversal-line to find my buy set-ups using a seller-failure pattern.

E-Mini S&P is Trying to Fool Us Right Now…

E-Mini S&P is bullish with a WIDE Spike & Channel, which tells me that momentum is going to plan the biggest role in tomorrow’s trading session.

The bull momentum overall tells me to look for buying opportunities at support levels, but this WIDE Spike & Channel gives the sellers a ton of space to build momentum as price moves lower.

My plan is to absorb that momentum and use the “nested” 2-Try Failure pattern for the most reliable buy set-ups tomorrow morning.

Learn the Strategy – Join the Free Trading Course

E-Mini Nasdaq is Waiting to Give Buyers Another Shot…

Nasdaq is bullish with an ugly, but relatively obvious Spike & Channel, which tells me to look for a deep pullback off the high for the best buy set-ups tomorrow morning.

My only concern is this resistance trend-line coming down overhead.

This trend-line tells me to adjust my strategy to buy this pullback, instead of using the 2-Try Failure pattern for the buy set-up, I need to wait for the sellers to try twice and then use the trend-line as support on the opposite side.

Gold Day is Hunting for $1,300 and the High of the Range…

Gold is hunting for the high of this trading-range with a strong bull run into a Spike & Channel this evening, which tells me to look for buy set-ups down below the low of the channel, specifically around the reversal-line.

The most important thing to keep an eye on tomorrow is the high of this range.

My goal has been to trade the rotation back to the high of this range, and as we approach the highs, the key is going to be shifting my focus from buying pullbacks to looking for bear-traps.

Euro Day is bullish into a Narrow Trading-range…

Euro is running higher with strong bull momentum, which tells me to look for buy set-ups down at key support levels tomorrow morning.

The two main clues on this chart are the Spike & Channel and the trading-range.

The Spike & Channel always tells me to look for traps and seller-failure set-ups below the low of the channel, while the trading-range tells me to use the range expansion levels as key support.

If we do get the pullback, the key is to let the sellers try twice and then look for the signal to buy into their stops for a rally back to re-test the high.