Trading the “Pain Point”

We’re back in the action once again, this time after a Holiday Weekend, which historically gives us plenty of opportunities as markets try to make up for lost time.

This evening we can see plenty of range-bound markets, combined with strong momentum swings, is telling us to wait for breakout traders to get trapped in their positions before we look for entry directly into their “pain points” on Tuesday.

Crude Oil Bullish – But Look Where We Are!

Crude Oil is bullish with a Spike & Range pattern, telling me to look for buying opportunities using seller-failures down below the low of the range.

Knowing this, I want to avoid buying the bull breakouts because the more reliable trading opportunities will be selling off the highs using the “nested” buyer-failure instead.

E-Mini S&P is Running Higher – But Look Closely!

E-Mini S&P is bullish, but we’re trading at the high of the range, which is a horrible place to start looking for entry set-ups.

Knowing this, I’d rather buy the low of the range using a seller-failure set-up, or wait for a “nested” failure pattern to sell off the highs.

Nasdaq is Bullish – But Will This Last?

Nasdaq is bullish and appears to be ready to breakout of last week’s trading-range, but look closely at the chart and it’s easy to see this is most likely a trap.

Knowing where we are on the chart, a more reliable entry pattern would be a sell set-up using a buyer-failure instead – with a target going back down to the low of the range.

And of course, I’m going to keep my eyes open for a successful breakout, but only time will tell if we get that 123-Breakout set-up to confirm it.

Gold is Sitting on the Lows – Wait for the Bounce!

Gold is bearish and trading inside the same range from last week, which tells us to keep looking for selling-opportunities up above the highs using the buyer-failure set-up.

And don’t forget the buy-side; with such a well-respected trading-range, it should be easy to find buying opportunities using the “nested” seller-failure set-up to buy off the lows when the market gets over-extended below the range again.

Euro Bearish, But Did You See the Pendulum?

Euro is bearish, and it just completed it’s ‘pendulum swing’ target all the way off last week’s high, which tells me to look for buying opportunities off the low, with a target back up to the range high.

The challenge, however, is that this momentum is very strong for the bears, which tells me I should wait for these sellers to try TWICE before looking for entry long going back into the range tomorrow morning.

“Nobody can go back and start a new beginning, but anyone can start today and make a new ending.”