Momentum & Failure Combination

(Video length 00:52:51)

 

We got some strong moves to start today’s session, but as of the closing bell, we’re right back to trading inside the lunch-time ranges, which tells me these “balanced markets” are going to play a big role on Wednesday morning…

And my plan with a range is always the same; combine the short-term momentum with the ‘2-Try Rule’ for the most reliable failure set-ups – are you ready?

Crude Oil is bearish back into the range from the beginning of October, which tells me to look for sell set-ups using buyer-failures up above the high of the range tomorrow morning.

But don’t forget the news mid-morning tomorrow, because that may lead to a 123-Breakout and an opportunity to trade off the high/low of a new Hidden Channel.

E-Mini S&P Bears Want a Breakout, But Think Twice!

E-Mini S&P is bearish and trading just below the range from this morning, which tells me to wait for sell set-ups using the ‘2-Try Rule’ up at the high of a new Hidden Channel…

And if the market tries to go lower, I’m watching for a “nested” failure to buy off the lows for a counter-trend reversal.

Nasdaq Bears Need a 123-Breakout…

Nasdaq is bearish and trying to breakout below today’s range, which isn’t a very reliable sell location, in fact, I’d rather buy this market using a “nested” failure or wait for proof of the breakout with a 123-Breakout instead.

And don’t forget that news from Jerome Powell today, which should be seen as bullish for the Nasdaq, so I’m watching for a 123-Reversal and a buy set-up off the low of a new Hidden Channel.

Gold Bulls are Waiting the Expanding Triangle Low!

Gold is bullish into a narrow trading range, which tells me to look for buy set-ups using the ‘2-Try Rule’ below the range, especially around the support trend-line waiting below.

And if price tries to breakout higher, I’m looking to leverage the short-term momentum with a 2-Try Breakout Pattern with a target up to the measured-move at 1526.