3 Best Range Trades for Tuesday

We’re back to our desks once again, this time for a busy third week of April…

We continue to see range-bound markets on the charts tonight, which is great because the strategy is so simple…

Ranges act like magnets, so I’ll be looking for opportunities to buy low, sell high, and focus on failures for the best entries tomorrow morning in our trade room…

The only challenge I see on Tuesday is dealing with momentum.  I’d love to get short off these range highs, and buy off the lows, but I’ll need to stay patient for the proper entry triggers.  Let me show you what I’m looking for…

E-Mini S&P (ES):

E-Mini Keys to Success:

• Bullish into a trading-range at all-time highs
• Bulls want to complete the measured-move overhead
• Bears want to reverse back into the range(s) below

Best Trades for Tomorrow: 

• [UP] – 2-try trap to buy (or) nested failure to sell
• [DOWN] – 123-Reversal to sell (or) nested failure to buy
• [SIDEWAYS] – sit on hands, avoid the middle, wait for breakouts.

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

• Bullish into a range just below retesting all-time highs
• Bulls want to breakout higher to new all-time highs
• Bears want to sell these highs back into the range below.

Best Trades for Tomorrow:

• [UP] – 123-breakout to buy (or) nested failure to sell
• [DOWN] – 123-Reversal to sell (or) nested failure to buy
• [SIDEWAYS] – avoid the middle of the range, buy low, sell high

Gold Futures (GC):

Gold Keys to Success:

• Sellers continued last week’s rotation off the highs, now sitting on major lows.
• Bears want to complete the ‘pendulum swing’ objective down at 1720
• Bulls want to stop the bleeding and hold these lows.

Best Trades for Tomorrow:

• [UP] – buyer failure to sell (or) 123-Reversal to buy
• [DOWN] – 2-try trap to sell (or) nested failure to buy
• [SIDEWAYS] – wait for the range, then look to sell high using buyer failures