Know A Pullback From A Reversal

(Video length 00:49:07)

How do you know the difference between a pullback and a reversal?  It all boils down to how the price-action reacts to the moving average.

Crude Oil is bearish and trading at the low of a range, which means I need to wait for the next attempt to fail before getting long up off the lows.

E-Mini S&P is bullish and giving us easy clues that this move off the high is just a pullback, not a reversal, and now all we need is to time the entry properly.

Nasdaq is bullish with a ‘2-legged pullback’ off the high, which tells me to keep my eye on a key resistance trend-line to be used as support for the best entry long tomorrow morning.

Gold is bullish but sitting in the middle of the range, which means I have to be careful planning the correct entry for tomorrow morning.

Euro is bullish with a nice strong run higher today, which means I’m looking to buy pullbacks, and I have my eye on a combination of two major support levels tomorrow morning.

Crude Oil is trying to catch us chasing…

Crude Oil is bearish with a trading-range, wide bull channel, resistance trend-line, and a measured-move on the chart tonight.

The long-term momentum may be bullish, but the short-term momentum is clearly bearish with this strong ‘2-legged pullback’ off the highs.

And when you combine this strong move lower, with the low of this trading-range, it tells us to wait for the sellers to finish their second leg and they I can start looking for buying opportunities using support levels, such as this resistance trend-line.

E-Mini S&P is still showing signs of bullishness…

E-Mini S&P is bullish with a trading-range, hidden channel, resistance trend-line, and measured-move.

The momentum is bullish because even with this strong move lower it’s easy to see the price-action has a difficult time getting too far away from the moving average, which is a clear give-away that this is a pullback and not a reversal.

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