Trading The Short-Covering Rally

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“If you are going to achieve excellence in big things, you develop the habit in little matters. Excellence is not an exception; it is a prevailing attitude.”

Crude Oil is bullish as it tries to rally off the range lows, and a small trading-range on the chart is telling me exactly where to look for buying opportunities tomorrow morning.

E-Mini S&P is bearish and trading at the low of a range, so rather than trying to sell, I’m waiting to buy with the 2-Try Failure pattern tomorrow morning.

Nasdaq is bearish, but trading at the low of a range isn’t a great place to be selling, so my plan is to wait for the sellers to fail so I can buy this back up into the range.

Gold is bearish, but we just finished the ‘2-Try Rule’ at the low of the range, so I’m looking for buying opportunities going back into the range, and I have my eye on a falling resistance trend-line to use as support.

Euro is bearish with a strong move down to the low of the range, and my plan is to wait for the completion of the ‘pendulum swing’ before I start looking for buying opportunities going back up in the range tomorrow morning.

We have a handful of ranges to work with tonight, and with most markets trading near the low of the range, we’re looking to fade the breakouts for a short-covering rally tomorrow morning.

Crude Oil Day Trading Strategy

Crude Oil is bullish with a trading-range, triangle and measured-move on the chart tonight.

The bulls took control with this rally off the range lows, and more importantly, the sellers were unable to take control into lunch, leaving us going sideways with a possible triangle for tomorrow morning.

I would expect this market to rotate back to the high of this large range, which means I’m looking for buying opportunities, and the best place to find buying opportunities with a triangle is to use the 2-Try Failure pattern below the low.

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