Two Favorite Ways to Trade a Reversal (Friday’s Plan)

We’re heading into Friday’s trading session, and since tomorrow is the last day of trading for February, and we had such a big move down today, we’re expecting another volatile session to finish the week tomorrow morning…

Speaking of today’s big move lower; markets went three legs down to major support levels, which usually means we get either a range or reversal the following day.

I want to make sure you’re ready for both of these situations, so make sure you watch tonight’s video.  Here’s my game plan for Friday…

E-Mini Keys to Success:

• Big move down to major support; expect a range or reversal on Friday
• Bulls Want to reverse the trend and get back to the Weekend GAP
• Bears Want to hold these lows and possibly break lower

Best Setups for Tomorrow: 

• [UP] – 123-Reversal to buy (or) Buyer failure to sell
• [DOWN] – crown reversal to buy (or) 123-breakout to sell
• [SIDEWAYS] – sit on hands, wait to sell the pops

NASDAQ Keys to Success:

• Big move lower today, expect a range or reversal tomorrow
• Bulls Want to reverse back to the weekend GAP (last Friday’s close)
• Bears Want to hold price lower or breakout to new lows

Best Setups for Tomorrow:

• [UP] – 123-Reversal to buy (or) Buyer failure to sell
• [DOWN] – crown reversal to buy (or) 123-breakout to sell
• [SIDEWAYS] – sit on hands, wait to sell the pops

Gold Keys to Success:

• Three Legs down into a range, sitting just above major support
• Bulls Want to reverse the trend higher
• Bears Want to sell above the range with failure patterns

Best Setups for Tomorrow:

• [UP] – 123-Reversal to buy (or) Buyer failure to sell
• [DOWN] – crown reversal to buy (or) 123-breakout to sell
• [SIDEWAYS] – sit on hands, wait to sell above range highs