The Rule of Thirds Strategy

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Crude Oil is bearish with a strong run lower, telling me to expect another leg, so I’m looking at a key reversal-line for selling-opportunities tomorrow morning.

E-Mini S&P is bearish, hunting for the low of the range, so my plan is to find selling-opportunities on the way down, looking above the moving-average for buyer-failures along the way.

Nasdaq is bearish after a 123-Reversal, which means I have a hidden channel and I’m waiting to sell off the high.

Gold is trading sideways ahead of tomorrow’s ECB Announcement, which tells me to stay patient and wait for opportunities to fade the breakouts after the news is released.

Euro is bullish, but we’re in the middle of a range, so my plan is to look for seller-failures to buy the low of the range tomorrow morning.

These markets are rotating beautifully inside some key ranges this week, some of which are WIDE, which tells us to use the “rule of thirds” to find the best trading opportunities tomorrow morning.

Crude Oil Day Trading Strategy

Crude Oil is bearish with a strong run lower, trading-range, hidden channel, and reversal-line on the chart tonight.

The strong move lower is always a big clue, telling me to expect (at least) another leg lower.

Knowing this, I want to sell the next retracement to resistance, and with this recent 123-Reversal, I know the most reliable will be the high of a hidden channel, which lines-up nicely with this reversal-line at 51.68.

My only concern is the potential for this to be another small range developing, which means I need to keep my eyes open for a possible failure and a rally up to the high of this pending range, where the goal will be to use the ‘2-Try Rule’ to sell the high.

E-Mini S&P Day Trading Strategy

E-Mini S&P is bearish with a 123-Reversal, trading-range, and hidden channel on the chart tonight.

The bears have control coming off the highs with this 123-Reversal, which tells me to look for selling-opportunities at the high of this hidden channel.

The most important thing, however, is to avoid the middle of this range, which means we will likely see buyer-failures and bull-traps above the moving-average for the most reliable selling-opportunities tomorrow morning.

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E-Mini Nasdaq Day Trading Strategy

E-Mini Nasdaq is bearish with a 123-Reversal, hidden channel and trading-range.

The 123-Reversal gives the bears the momentum, and tells me to look for selling-opportunities at resistance levels overhead.

My plan for tomorrow is to look for those selling-opportunities up above the high of the hidden channel, preferably using bull-traps above the prior swings.

Gold Day Trading Strategy

Gold is neutral and stuck right in the middle of a trading-range.

The trading-range tells me to buy the low and sell the high using the 2-Try Failure pattern, and with us in the middle, I need to sit-on-hands until I get an opportunity to fade the breakouts tomorrow morning.

Euro Day Trading Strategy

Euro is bullish with a trading-range and bull channel.

The bull momentum coming off the low of this range tells me that the buyers are hunting for a re-test of the range high.

The challenge is, we’re in the middle of the range, which is always a tough area to trade.

My plan is going to be looking for buying opportunities near the low of the range, and my entry pattern will be bear-traps and seller-failures.