It’s a Trap!! 2 Ways to Get Paid Running Stops!
We’re just gettin’ this week warmed up!
We have some nice, strong trends going into Wednesday – some of them we can trade, but others smell like a trap!
So let’s flip the script – here are (2) ways to get paid off those traps!
Both the Emini and Nasdaq are bearish into the close – I’m normally looking to sell pullbacks in these situations, but this time I like the reversal much better!
Crude Oil looks great tonight – strong bull trend into a range, and I have (3) easy trading patterns you’ll regret missing on Wednesday!
Remember – markets are closed on Friday, so every trade counts!
E-Mini S&P (ES):
The Emini is bearish and recently completed a retest of yesterday’s major low.
The bears have control of momentum, but selling into major lows isn’t a great idea. We’ll need to stay patient for a pullback into resistance overhead and then use a buyer failure setup to trigger stops and another leg lower.
Buyers definitely have options right here. They can buy a double-bottom reversal off major lows, or they can trade a ‘Pop & Grind’ reversal going higher.
Keys to Success:
- Bears have control, but we can’t sell into major lows.
- Buyers want a reversal back to today’s high
- Sellers need a deep pullback to “free up some space”
- Breakout needs to be strong, but short to avoid selling into the next major support level waiting below.
E-Mini Nasdaq (NQ):
The Nasdaq is bearish and just completed a retest of major lows.
Sellers have control, but they’ll need to wait for a pullback and look to “trap” in the buyers before they can sell into these lows. They can also sell a 123-breakout going lower on strength.
Buyers have some good options too. They can buy a crown reversal off these major lows, or a 123-Reversal pattern going higher.
Keys to Success:
- Strong bear move, but right into major lows!
- Buyers want a reversal off major support just below us
- Sellers want a deep pullback to suck in the bulls
- Major support below us says a breakout needs to blast!
Crude Oil Futures (CL):
Crude Oil is bullish into a sideways range.
Buyers have control, and they’ll be looking for entries off support levels below the range, along with breakouts going higher on strength.
Sellers have to be careful right now with all this bullish momentum. They can use a 2-try failure to sell resistance above the range, but a 123-Reversal pattern will be a lot more reliable.
Keys to Success:
- Bullish momentum into a trading-range
- Buyers want entries off support below the range, or breakouts going higher.
- Sellers want/need momentum to shift with a strong reversal.
- Plenty of options for a breakout with open space overhead!
