Can You Predict a Reversal? 3 Patterns to Trade the Turn
Markets got right back to work to kick off the third week of July, starting with big runs higher, and finishing today’s session with even bigger runs lower…
But there’s something fishy about these moves lower today – they all landed conveniently at major turning points on the charts, telling me to keep my eyes open for three reversal patterns on Tuesday morning – are you ready?
E-Mini S&P Completes a Major Pendulum Swing…
E-Mini S&P is bearish after a big collapse off today’s high; but look closely at where price finished today’s session and you’ll see we’re sitting at a pendulum swing…
Knowing this, my plan is to wait for the sellers to try twice on the next pullback and I’ll be looking to buy into their stops for a short-covering rally going higher…
- Buyers looking for a Crown Reversal pattern (or) nested failure pattern to get long off this rising support trend line
- Sellers need to get short with a trap pattern off the channel high (or) wait for a 123-Break to confirm the next leg lower.
Crude Oil Runs Lower as Virus Cases Spike Higher…
Crude Oil is bearish with a strong run lower to finish today’s session, but the day began in a range which means the pressure is on the sellers to hold the next pullback…
Knowing the range is still a magnet, my plan for tomorrow is to wait for sellers to get stuck short off the high of a channel so I can buy into their stops…
- Buyers waiting for a nested failure pattern to buy off the lows (or) a 123-Reversal pattern to turn momentum back higher again.
- Sellers need to beware the range is a magnet; they need buyers to try twice on the next pullback before they can get short.
Gold Sellers Trying to Break Free of This Range…
Gold is bearish and trading just below today’s range, which is still acting as a price magnet, and my job is to keep looking to buy these lows until sellers can show me proof of a 123-Reversal…
The challenge is the bear momentum coming off the high; before I try to buy this bear market, I need to wait for a nested failure pattern to trap in the sellers…
- Buyers want to get long back into the range with a nested seller failure pattern or crown reversal
- Sellers need to see more proof, they need to hold the next pullback.
