Trading Sharp Pullbacks – Avoid the Stop & Run

By Joseph James of Sideways Markets

Head-Trader at SchoolOfTrade.com • Mar 26, 2020 at 10:00 PM EDT

Crude Oil is bearish and trading below the weekly trading-range, which will act like a magnet to drag price higher on Friday.

Tomorrow’s the last Friday of the first quarter, which means we’re going to be trading a rare situation; end of week, end of month, and end of quarter, and that means increased volatility…

Knowing this, I want to make sure we’re ready for sharp pullbacks tomorrow morning, because if you’re not prepared, you’ll get fooled into taking the wrong side of the market – are you ready? Let’s go…

Oil Traders Keep Fading Breakouts…

Crude Oil is bearish and trading below the weekly trading-range, which will act like a magnet to drag price higher on Friday.

Knowing this, I want to buy these lows, but the recent momentum is so strong for the bears, I need to wait for a “nested” failure pattern to get long.

Emini Spike & Channel Says Anticipate Sharp Pullbacks…

E-Mini S&P is bullish with a spike & channel pattern, which tells me to anticipate a rather sharp pullback at some point tomorrow…

Knowing this, I don’t want to miss that opportunity, so I’ll be watching key support levels and looking for seller-failure patterns to get long.

Gold Sellers Looking for More Ways to Sell Off These Highs…

Gold is bearish and back inside the weekly range, which continues to act as a magnet for price…

Knowing this, my plan is to buy low, sell high, and focus on failures for the best entries on Friday morning.

Disclaimer:

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