Four Ways to Trade Breakouts

Our favorite markets are trading inside of ranges this evening; some big, some small, some wide, and some narrow – and all of those are important details that we need to address in tonight’s newsletter…

But no matter what the size or shape of the range, I’m always looking for my (4) four favorite breakout patterns.  Are You Ready?

Crude Oil Bulls Wait for the Sellers to Try Again…

Crude Oil is neutral and trading sideways inside a range this evening, which tells me to focus on failures to buy the low and sell the high of the range tomorrow morning…

But the biggest clue on this chart is strong move down from last week, which tells us to expect these sellers to keep trying to send price back to last week’s low…

And the next time they try that move lower, the buyers will be waiting to buy using multiple support levels, with a target going back to re-test the high.

E-Mini S&P Wants to Re-Test Last Week’s High

E-Mini S&P is bullish and rotating back to re-test the high of last week’s WIDE trading-range, which is an important clue to consider…

Because as we go higher, we get closer to the overhead target, which means we need to stay focused on buying deep pullbacks with seller-failures as we go.

Nasdaq is Just Inches from the Target…

Nasdaq is bullish with a strong run higher, almost back to the high of last week’s trading-range, which tells me to look for buying opportunities on deep pullbacks before we get there…

Knowing this, I can see a Spike & Channel pattern on this chart, which tells me exactly where to look for the buy set-ups tomorrow morning.

Gold is Waiting on the ECB Later This Week…

Gold is bearish into a narrow trading-range, which tells me that, in order to get a decent risk-reward-ratio on my trade, I need to get a rather large breakout of this range…

Once I see a large enough breakout, then I can start looking for the 2-Try Failure pattern to trade back into the original range.

Euro is Sitting on Major Support…

Euro is also bearish into a narrow trading-range, and just like Gold, I need to wait patiently for a large attempted breakout…

And for that breakout, I’d like to see the sellers try taking this lower, because there is rock-solid support waiting below us and id love to use a “nested” failure pattern to buy up off the lows.

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