Trading the “Rule of Three”
Markets got off to a fast start to begin the week, but with most of the movement happening before the US session began, I have to assume that buyers are still waiting on the next deep pullback to find their entries at key support levels…
Knowing this, I have my eyes on some key support levels for tomorrow, and I’m waiting on the “Rule of Three” to help me find the best set-up to trigger the entry – are you ready?
Buyers Have Been Waiting on This Pullback on Oil…
Crude Oil is bullish into a trading-range this evening, telling me to look for buy set-ups underneath the range using a seller-failure pattern…
And since we just got a strong shot lower to finish today’s session, I’m going to wait for a more reliable “nested” failure set-up to trigger long going back up to re-test the highs on Tuesday.
E-Mini S&P is Slowing Moving “Three Legs Down”…
E-Mini S&P is bullish with a flag pattern, which means we’re playing the “rule of three”, waiting for one of two possible entry set-ups using the bear channel.
The key, I believe, is this support trend-line coming up from below, which is likely where the bulls want to get back in long again, we just need the breakout-pullback to fail underneath the channel so we can buy it back up again.
Nasdaq Bulls are Waiting for the Pullback – To Where?
Nasdaq is bullish into a narrow trading-range tonight, telling me to look for buy set-ups using seller-failure patterns below the range on Tuesday…
And don’t forget about the wide Hidden Channel, drawn off the two highs, that gives us key support for a deep pullback and a nice buy off the lows tomorrow morning.
Gold Buyers Waiting for the Crown Reversal…
Gold is bullish and rotating back and forth inside a range, and soon to become an expanding triangle, which makes the plan relatively simple…
I want to buy the low, sell the high, and avoid the middle, focusing on failure set-up and a target using the ‘pendulum swing’ on Tuesday morning.
“Don’t set your goals too low. If you don’t want much, you won’t become much.”
