4 Ways to Trade a SPIKE

“Resistance is the key battle that you’re going to fight for the rest of your life, but the key to overcoming that resistance is to fight it. Every day you do so, you have won the battle for that day.”

Crude Oil is bearish at the low of the range, telling me to look for buying opportunities, but this momentum is so strong that I need to wait for a “nested” 2-Try Failure pattern to buy tomorrow morning.

E-Mini S&P is bullish with a Spike & Channel pattern, and we’re just a few points from re-testing last week’s high, so my plan is to use bear-traps for buying opportunities.

Nasdaq is bullish with a Spike & Wedge pattern, which means the higher we go, the more likely we get a great buying opportunity after a DEEP pullback.

Gold is bullish back into the range, so I’m going to focus on buying just below the range using the 2-Try Failure pattern.

Euro is bullish with a strong spike higher, and I’m waiting for buying opportunities off the low of a hidden channel.

We have a bunch of SPIKES on the chart, some going with the trend, and some going against, so tonight we’re going to talk about the four most reliable ways to trade a strong “spike” on any chart.

Crude Oil Day Trading Strategy

Crude Oil is bearish with a spike down to the low of the weekly trading-range, which is major support, but it’s too bearish to try buying this low.

So my plan is to wait for the sellers to try twice going lower, then use the nested 2-Try Failure pattern to buy back into the range tomorrow morning.

E-Mini S&P Day Trading Strategy

E-Mini S&P is bullish with a Spike & Channel just a few points away from last week’s high.

The Spike & Channel tells me to wait for a bear-trap down at previous swings, and the prior week high reminds me that we’re running out of space to push higher, which is always a great clue to look for traps as well!

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E-Mini Nasdaq Day Trading Strategy

E-Mini Nasdaq is bullish with a spike and wedge, which is a reliable clue that tells me to wait for a DEEP pullback and buy into seller-failures for a re-test of the high.

Gold Day Trading Strategy

Gold is bullish as it races back into the weekly trading-range, and with this strong spike into a range, my plan is to look for buying opportunities below the range using the 2-Try seller-failure pattern.

Euro Day Trading Strategy

Euro is bullish with a strong spike higher, which tells me this market is bullish, so I’m looking for buying opportunities off support levels tomorrow morning.

I’ve connected the highs of this spike, dragged them down to the low and created the hidden channel – now I just need to wait for the pullback and look for a seller-failure set-up going back up to re-test the highs.