August 24, 2017
- in Uncategorized by schooloftrade
Trade the ‘2-Try Rule’ | Crude Oil, Emini, Nasdaq, Gold & Euro
“Every day do something that will inch you closer to a better tomorrow.”
Crude Oil is bearish and trying to re-test today’s low, and I’m waiting for a ‘2-Try Rule’ buyer-failure for selling-opportunities back down to the lows.
S&P is bearish and trying to re-test today’s Measured-move, and a short-term trading-range tells us to use the ‘2-Try Rule’ to focus on failures up in the ‘battle zone’ tomorrow.
Nasdaq is bearish and trying to re-test today’s low, and a flag pattern tells us to look for selling-opportunities up around the high of this channel.
Gold is bearish, and a triangle on the chart tells us to focus on failures using the ‘2-Try Rule’ to fade the breakouts back into the original range tomorrow.
Euro is bullish, but after two tries to reach their target, I would expect to see some profit-taking and a possible reversal tomorrow.
Crude Oil Trading Strategy
Crude Oil is bearish and trying to re-test today’s low, and hopefully the prior week low tomorrow morning.
The sellers had a nice strong run lower today, collapsing after the buyers failed to re-test yesterday’s high, and then correcting off the lows as sellers took profit to finish the session.
This is a great place to look for selling-opportunities, but this move higher is most likely going to get the buyers interested, so im waiting for a 2nd try from the buyers to fail for selling-opportunities back down to re-test today’s low.
E-Mini S&P Trading Strategy
E-Mini S&P is bearish and trading sideways with a triangle, just above yesterday’s low.
The Trading-Range tells us to focus on failures using the ‘2-Try Rule’ up above the high of this range, preferably in the ‘battle zone’ tomorrow.
The measured-move is another example of the ‘2-Try Rule’, knowing that we usually test the measured-move twice, so that will be our target to the down-side tomorrow.
E-Mini Nasdaq Trading Strategy
E-Mini Nasdaq is bearish and trying to re-test today’s low, and a short-term bear flag is telling us to look for selling-opportunities up at the high of the channel to avoid selling into this rising support trend-line.
The two most important clues on this chart are the lack of buyer control, and the rising support trend-line.
The buyers haven’t shown any real proof that they want control of this market, which would be a strong spike higher.
The rising support trend-line will most likely keep sellers from selling too low, so the next best option is to use the high of this new bull channel (flag) to sell the moves that go higher.
Gold Trading Strategy
Gold is bearish and trading inside a triangle, which is traded like a range.
The plan for tomorrow is to fade the edges, using the ‘2-Try Rule’ to sell off the high and potentially buy off the low.
The bears have the edge, so focus on failures up at resistance levels overhead, knowing that you can buy the low, but the odds are much lower.
Euro Trading Strategy
Euro is bullish, but after two attempts to re-test the high of yesterday’s Spike & Channel, the buyers are likely growing concerned, and we can see sellers are now starting to fade off the highs.
At this point, the market is likely going to trade sideways until one side gives way for the other. I don’t want to buy high or sell low, so the best strategy for tomorrow is to look for strength in either direction, and then trade the ‘2-legged pullback’.
Targets for the buyers are back to yesterday’s high, and the prior week high. Target for the sellers is back down to yesterday’s low.
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