Fractal Trading Strategy

(Video length 00:52:17)

Markets are RED HOT going into the end of February, and that increased volatility tells me that momentum is going to be a vital piece of the strategy…

Which means we have to consider using “fractals” for the most reliable entry patterns going into tomorrow’s trading session…

Crude Oil is Bearish, But Hasn’t This Gone Too Far?

Crude Oil is bearish with a strong run lower, which tells me to look for a trading-range developing on the chart tomorrow morning.

Knowing this, my plan is to wait for the range, then use the range expansion levels combined with entry patterns to sell off the high.

E-Mini S&P is Bullish, But Did the Bears Grab Control?

E-Mini S&P is bullish in the long-term, but the short-term is owned by the sellers, which tells me that I can’t get too aggressive buying this pullback until we see the failure.

Knowing this, a better plan is to use a “fractal pattern” to wait for the sellers to try twice before buying into their stops.

Nasdaq is Bullish and Waiting on a Pullback

Nasdaq is bullish with a strong run into a trading range, which tells me to resist the temptation to buy into the highs, with a much better strategy to use fractals to find the “nested” 2-Try Failure pattern going back to the high.

Gold is Sideways with a Triangle

Gold is range-bound with a triangle pattern, which tells me to buy the low, sell the high, and avoid the middle.

More important, however, the resistance trend-line coming down overhead tells me to focus mainly on TRAPS so I don’t get suckered into buying too high.

Euro Might Be Ready for a 123-Breakout

Euro is still trading inside the range from last week, so the plan continues to be selling high, buying low and using the 2-Try Failure pattern to fade the breakouts.

I’m also watching for a successful 123-Breakout because the buyers will (eventually) want to make a run to that measured-move target waiting lonely overhead.

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