Spike & Range Trading Strategy

 

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We had some big moves in today’s session, but for most of our favorite markets, we’re finishing today’s session going sideways inside of ranges…

But not to worry, because these Spike & Range patterns offer us plenty of reliable entry set-ups, you just need to know where to find them – are you ready?

Can the Bears Hold This Move on Crude Oil?

Crude Oil is bearish with a strong spike lower, into a sideways trading range, which tells me to look for reliable sell set-ups up above the high of the range tomorrow morning.

Knowing this, my plan is to wait for the move higher and then look to sell into the stops of the buyers trying to buy the pullback off the moving-average with a target going back down to re-test the low.

Is It Too Late to Buy the E-mini ES?

E-Mini S&P is bullish with a Spike & Range pattern on the chart, telling me to look for buy set-ups down at key support levels below the range tomorrow morning.

Knowing this, my plan is to wait for a pullback down into the battle-zone waiting below, and then look for a seller-failure entry pattern for a rally back up to the highs.

We’re Still Waiting for PROOF on the Nasdaq…

Nasdaq is bullish with a grinding “melt-up” in today’s session, which tells us that buyers are likely still waiting patiently on the sidelines to buy any pullback they can get on Tuesday.

Knowing this, I’m waiting for a pullback to the low of a Hidden Channel to catch the counter-trend sellers trying to predict the reversal, for an easy short-covering rally back to the highs.

Bears are Waiting for a Pullback on Gold, But Where?

Gold is bearish with a Spike & Range pattern, sitting on a measured-move support level, which tells me it’s too low to sell, and I need to wait for a pullback to resistance…

Speaking of resistance, we have three resistance levels all stacked-up on top of each other just below 1500, so I’m waiting for a pullback so I can sell into the stops of the counter-trend buyers.

 

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