Three Leg Trading Strategy

Markets are finishing today’s session with strong bullish moves, which tells me to look for pullbacks to key support levels, such as the low of Hidden Channels…

But look closely, and you can see many of these charts have three legs going higher, which tells me exactly what to be looking for on Thursday morning.

Crude Oil Combines Three Simple Patterns

Crude Oil is bullish with two flag patterns, which tells me to look for buying opportunities after the breakout-pullback above the highs.

Knowing this, I need to stay patient, waiting for the pullback and the sellers to fail below the moving-average, but the wait will be worth it because we have a BIG measured-move target waiting overhead.

E-Mini S&P Just Got a Breakout (Now What?)

E-Mini S&P is bullish with a 123-Breakout above today’s range high, which tells me to go looking for a pullback to the low of the Hidden Channel, which also lines-up with a key reversal-line as support.

Its also important to remember, Monday’s high is just around the corner, reminding me to avoid chasing the market higher, and if needed, waiting for bear-traps to buy the shallow pullbacks.

Nasdaq is Three Legs Higher

Nasdaq is bullish and re-testing the weekly highs with three strong legs higher, which is a BIG clue, because that usually means the following day is going to be a range-bound market.

Knowing this, I’m waiting to see double-tops at these highs so I can start planning for the 2-Try Failure using the range levels as key support tomorrow morning.

Gold Might Catch a Nose Bleed up here!

Gold is bullish and just completed its three leg move, which tells me that (yes) we’re bullish, but (no) I don’t think it’s wise to start buying at this lofty price.

On the flip side, I’d rather wait for a deep pullback, preferably down to the 1310 area where I can combine a reversal-line with the low of a new Hidden Channel.

Euro is Daring Us to Chase This Move (Don’t!)

Euro is bullish with a strong bullish rally back into the weekly trading-range, which tells me to look for buying opportunities, but stay away from the middle!

With that in mind, my plan is to either wait to buy the deep pullback (to avoid the range) or watch for a strong breakout to new highs and buy off the bear-trap.

“Confidence comes not from always being right but not fearing to be wrong.”