October 10, 2017
- in Uncategorized by schooloftrade
Momentum Trading Strategy | Crude Oil, Emini, Nasdaq, Gold & Euro
“Trading is a game of probabilities and pattern-recognition that can be won by anyone who is willing to invest the time to learn the business, develop the skills, and maintain the trader’s mindset.” – Joseph James
Crude Oil is bullish and trading at a major resistance level, but with such strong momentum moving higher, I’m looking for buying opportunities after a ‘2-legged pullback’ and a target back to the high.
S&P is bullish and trying to finish rotation back up to the high of the range, but the lack of open space above us tells me to focus on “Traps” to finish off the target tomorrow.
Nasdaq is bullish and rotating off the low of a Spike & Channel, but a key location on the chart tells me to wait for sellers to try and fail once more before grabbing more buying opportunities tomorrow.
Gold is bullish and trading at the low of a Spike & Channel, but the momentum of the market going lower tells me to wait using the ‘2-Try Rule’ before buying more tomorrow.
Euro is bullish with a Spike & Channel, but we have major resistance levels coming in overhead, so my plan is to look for traps and seller-failures to avoid buying too high on Wednesday.
We’re talking about Momentum on the charts this evening, with lots of strong momentum giving us big trading opportunities for Wednesday’s Session…
Crude Oil Trading Strategy
Crude Oil is bullish with a Spike & Channel, telling us to use the market’s momentum to pull price back up to re-test the high tomorrow.
The big challenge right now is this measured-move resistance level. Buyers would much rather wait to buy at a support level, such as the resistance trend-line coming down overhead, or all the way down in the ‘battle zone’ at a lower price.
No matter what the pullback looks like, I’m expecting a ‘2-legged pullback’ off the highs, deep enough to attract buyers back into the market so I can find a good entry pattern and let the momentum of the market can carry price back to re-test the high.
A friendly reminder as well… anytime there is a holiday on a Monday, the weekly Inventory Report gets pushed back until Thursday at 11:00am EST, you can thank our buddy Chris Columbus for that one.
E-Mini S&P Trading Strategy
E-Mini S&P is range-bound with a bull-bias, telling me to keep looking for buying opportunities, using range “rotation” as my guide for tomorrow’s session.
We’re coming off the low of the range, so “rotation” tells me to expect price back to the highs.
We’re getting close to those highs, so the plan is to look for last-minute buying opportunities using traps and seller-failures down in the ‘battle zone’ or else I need to wait for a successful breakout-pullback to keep buying more tomorrow.
E-Mini Nasdaq Trading Strategy
E-Mini Nasdaq is bullish and trying to re-test the high of a multi-session Spike & Channel, but the bears had such a strong move lower this morning that this momentum is most likely going to drag this price back lower for another attempt to re-test the 39.00 low.
Knowing that the bears are in a great place to look for selling-opportunities (at a swing-high), my plan is to let the sellers try another round going lower, looking for buying opportunities using seller-failures down in the ‘battle zone’.
If price shoots back higher, my only concern is the 88.50 high, and I will resist the temptation to chase the move higher, focusing on buying pullbacks or looking for “bears traps” if price gets too close to the high.
Gold Trading Strategy
Gold is bullish with a wide Spike & Channel, which tells me that the buyers will be trying to re-test the high, but the momentum for the sellers will most likely be strong enough to give the bears another try going lower tomorrow.
My plan is to wait for the sellers to try once more, looking for seller-failure up around the moving-average for a target going back up to the high.
The resistance trend-line coming down overhead is going to be a big clue for tomorrow because the buyers will be trying to use that as support for a move going back up to the high.
Euro Trading Strategy
Euro is bullish with a Spike & Channel as buyers try to finish rotation back up to the high of the range from two weeks ago.
The bulls have control, and their objective is to re-test the range-high, so my plan is to look for buying opportunities using traps and seller-failures below support levels to avoid buying too close to the high of the range.
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