Psychology Trick to Avoid Losses | SchoolOfTrade Newsletter 02/27/17

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“I Am Thankful For All Of Those Who Said, “No” To Me. It’s Because Of Them I’m Doing It Myself.”

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Crude Oil is bearish and trying to complete a measured-move, but there are two big clues that tell us to wait for a correction higher before we sell more tomorrow.

S&P is bullish, but a big clue @ 2:00pm EST today tells the buyers to look for a deeper pullback than they might be expecting tomorrow.

Gold is bearish, and the strong move lower this afternoon tells us to be looking for one of four scenarios tomorrow.

Euro is bearish, and a great example of market-psychology on the chart tells the sellers exactly where to be looking for opportunities tomorrow.

FDAX is bullish, but we’re getting a little too close to the ‘No Trade Zone’, so we will be waiting for a pullback tomorrow.

Crude Oil

Crude Oil is bearish with a wedge this evening, and if you watch this newsletter every evening, you know how much we love trading with wedges.  This wedge is almost done, which means the range between the highs and lows is too small to trade, which tells us to look for a move higher, up to resistance levels, for the most reliable selling-opportunities going back down to the wedge target waiting below.   

E-Mini S&P

E-Mini S&P is bullish and trying to finish off a measured-move target tomorrow, but that may be more challenging that then bulls would like because we can easily see the buyers took all their profit when they re-tested the high, which tells us to consider this chart to be similar to a range.  If the market is in a trading-range, then we know that price will rotate from the high back to the low, and then back to the high, so buyers will be wise to look for seller-failures on this recent pullback, but don’t be surprised if the sellers are successful at sending price back to the lows before giving the buyers another round of opportunities tomorrow.

Gold

Gold is bearish, but this recent spike lower tells us this market should be considered ‘irrational’ and encourages us to stay patient and wait for a spike & channel, spike & range, bear wedge or a bear flag to give us more clarity on where the best entry will be.  One thing is for sure, the bears have control, and anytime we see a strong move in one direction like this, the odds are very high that sellers will be waiting on the next pullback to re-test the lows, and most likely find a way to finish the Double-Down target tomorrow.

Euro

Euro is bearish and trying to rotate back to the lows tomorrow, but this sharp drop off the highs tells us that sellers would be wise to avoid chasing this move lower and wait for a trap-high above that recent swing-high.  This chart is a great example of market-psychology at work; the bulls took control at the beginning of the session, they got plenty of pullbacks on the way up to the Double-Up target, which allowed all the buyers to jump on, and when it reached the Double-Up you can see they all took their profit.  The move off the highs now gives the sellers the opportunity to grab this, but they won’t want to sell this low, so they will be looking for opportunities to sell ‘high’ up around levels of resistance overhead.

FDAX

FDAX is bullish and trying to complete a measured-move and re-test today’s high, but we’re getting a little too close to the bulls’ objective, which tells us to keep an eye on a pullback to levels of support for the most reliable buying opportunities on the way to completing the measured-move and possibly a re-test of the prior month high tomorrow.