Picking Tops & Bottoms (The Reliable Way)
We’re back in the action for another week of trading, and with most of our favorite markets trading sideways within ranges, the strategy is to buy low, sell high, and avoid the middle tomorrow morning…
But “picking tops and bottoms” is easier said than done, right? It’s easy to lose money trying to pick the right entry price, which is why I’m going to paying close attention to the ‘2-Try Rule’ on Tuesday – are you ready?
Crude Oil is Treading Water Ahead of Resistance…
Crude Oil is bullish into a narrow trading-range, telling me to look for buy set-ups using key support levels below the range on Tuesday…
And I have my eyes on the combination of two major support levels – the low of a Hidden Channel and the new range-expansion levels down around 57.20.
E-Mini S&P Rotates Inside Expanding Triangle…
E-Mini S&P is bullish and rotating back and forth inside the range from last week, which means the plan is to buy the low, sell the high, and avoid the middle…
And that lunch-time run lower is a big clue for me, telling me to expect another attempt from the bears, at which point I’m looking to buy into their stops for a rally going back up to the high.
Nasdaq Wants Higher, But Sellers Say Differently
Nasdaq is bullish and trading just below the low of the weekly range, which is a great place to look for a buy set-up…
But if you look closely, you can see a strong run lower over lunch, which tells me to expect another attempt to go lower, at which point we can buy into the stops of the sellers for a rally back up to the highs again.
Gold Rotates Inside a Wedge (and it’s almost finished!)
Gold is bearish with a wedge pattern, telling me to focus on sell set-ups at the highs and reversals off the lows…
Knowing this, my plan is to sell into buyer-failures off the high, and wait for the crown reversal pattern to buy underneath the lows.
Euro Wants Higher, But the Range Says No!
Euro is bullish and trading at the high of a range this evening, which isn’t a very reliable place to be buying, in fact, I’d rather be a seller at these highs…
A better plan, is to wait for aggressive buyers to try buying the low of this channel and sell into their stops for a collapse back into the range tomorrow morning.
“Think Big and Don’t Listen to People Who Tell You It Can’t Be Done. Life’s Too Short to Think Small.”
