Trading The Blow Off Top (My 3 Favorite Patterns)
(Video length 00:48:02)
We’re headed into a new month on Thursday morning, which means volatility levels should remain high, and trading opportunities should be plentiful…
The most important clue going into tomorrow is momentum; we have wide trading-ranges, pendulum swings, and a big blow-off top that looks ripe for trading as we kick-off October. Are you ready? Let’s dive in…
E-Mini Pendulum Swing Gives Sellers an Easy Target…
E-Mini S&P is bearish after buyers completed their pendulum swing and price reversed back into the weekly trading-range…
With momentum now firmly in the hands of the bears, I’ll be looking to get short above the range highs using buyer failure and bull-trap patterns…
Crude Oil Blow-Off Top Tells Us to Look for Bull Traps…
Crude Oil is bullish and trading back at the $40 round number, which would normally tell me to get long on the next pullback, but there’s something fishy about this chart…
It’s the way the session ended; a blow-off top above $40 makes it hard to trust the next pullback, and with the range from earlier today still untested, I’ll be looking to get short into buyer failures on the next pullback…
Gold’s Wide Range Says Respect Momentum…
Gold is bullish and trading inside a wide trading-range, which tells me to look for buy setups at key support levels below the range…
One thing to keep in mind is the size of the range; it’s very wide, which means momentum will require me to use a “nested” seller failure pattern to trigger the entry…
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